Question

Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer.

Answer 1

The major difference between rural and urban poverty in India lies in the standard of living. The latter enjoys higher living standard compared to the former and the standard of living may be attributable to the wide income disparity and gap between the two. Another major difference is the level of education and also access to education. The urban Poor enjoy better access to quality education than the rural counterparts. Thirdly, health care facilities prevalent in the urban areas are far better than that of in the rural areas. Also the rural poor people lack access to these health facilities and important medical information. Fourthly, the difference lies in the type of houses they live in. The rural poor lives in kutcha house, while the urban poor resides in pucca houses which are well developed with proper sanitation facilities. Fifthly, rural poverty is temporary as the rural poor can migrate to urban areas to seek employment but, on the other hand, urban poverty is permanent.

Year	Poverty Ratio
	Rural (%)	Urban (%)	Total (%)
1973-74	56.4	49.0	54.9
1977-78	53.1	45.2	51.3
1983	45.6	40.8	44.5
1987-88	39.1	38.2	38.9
1993-94	37.3	32.4	36.0
1999-2000	27.1	23.6	26.1
2004-05 comparable with 1993-94	28.3	25.7	27.5
Estimates Source: Planning Commission Estimates (Uniform Reference Period)

Yes, it is correct to say that poverty has shifted from rural to urban areas. The above data spells out how rural poverty has declined significantly from 56.4% to 28.3% from 1973­-74 to 2004-05 whereas decline in urban poverty (from 49% to 25.7%) is not so significant. Over the years, rural poor has migrated to urban areas in order to seek for better employment opportunities and better living standard. But on the other hand, since rural people lack skills and education, so the urban industrial sector fails to absorb this excess supply of labour. Consequently, these unskilled labourers form an informal sector (like rickshaw puller, barber, cobbler, etc.) that makes them even more vulnerable. Thus, the trends in poverty in India support the statement that poverty has shifted from rural to urban areas.