Urban poverty in India is issue. It reflects the struggles of individuals in cities who lack basic necessities. This form of poverty is distinct from rural poverty due to the unique challenges faced by urban dwellers. Access to employment, healthcare, and education is often inadequate. Urban poverty affects millions and requires targeted interventions.
Key Findings from the India Employment Report 2024
The India Employment Report (IER) 2024, published by the International Labour Organization (ILO) and the Institute for Human Development (IHD), marks several critical issues. It notes a paradox of higher unemployment rates alongside rising wages in urban areas. This phenomenon warrants deeper investigation to understand its impact on the urban poor.
Unemployment Trends
Unemployment is notably higher among urban youth compared to their rural counterparts. Young individuals aged 15–19 experience the highest rates of unemployment. This trend raises concerns about job availability and the effectiveness of current economic policies.
Gender Disparities in Employment
The gender gap in the Labour Force Participation Rate (LFPR) remains . In 2022, young men had an LFPR of 61.2%, while young women only had 21.7%. This discrepancy marks the need for policies that promote gender equality in the workforce.
Urban Poverty Statistics
The proportion of urban poor in India decreased from 13.7% in 2012 to 12.55% in 2022. While this decline is positive, it still indicates that a substantial number of individuals live in poverty in urban settings.
Characteristics of Urban Poverty
Urban poverty has distinct characteristics compared to rural poverty. It often involves inadequate access to housing, healthcare, and education. Urban residents frequently live in informal settlements or slums, which lack basic services.
Challenges Faced by the Urban Poor
Several challenges exacerbate urban poverty:
- Housing Issues: Many urban poor reside in unauthorised settlements with insecure tenure.
- Lack of Basic Services: Access to clean water, sanitation, and healthcare is often limited.
- Crime and Vulnerability: Urban areas can be dangerous, with higher risks of crime and extortion.
- Weak Social Networks: Community ties in urban areas are often weaker than in rural settings, making support systems less effective.
Visibility of Poverty
Poverty in urban areas is more visible than in rural regions. This visibility can lead to greater feelings of deprivation and social exclusion. Urban environments often juxtapose extreme wealth with stark poverty, as seen in areas like Dharavi in Mumbai.
Causes of Urban Poverty
Several factors contribute to the prevalence of urban poverty:
- Urbanisation of Poverty: Rural migrants move to cities seeking better livelihoods, increasing urban poverty.
- Exclusionary Urbanisation: Urban planning often neglects informal settlements, perpetuating poverty.
- Regional Disparities: Underdeveloped smaller cities push migration to megacities, leading to slum growth.
- Lack of Social Security: Many urban poor lack residency proof, excluding them from welfare programs.
- Financial Insecurity: High informal employment and underemployment rates contribute to economic instability.
Impact of COVID-19 on Urban Poverty
The COVID-19 pandemic brought into light the vulnerabilities of the urban poor. Lockdowns resulted in mass migrations back to rural areas. Many lost their jobs and faced severe financial insecurity during this period.
Strategies for Addressing Urban Poverty
To combat urban poverty, several strategies can be implemented:
- Inclusive Urbanisation: Involve local communities in urban planning to ensure their needs are met.
- Support Community Initiatives: Encourage self-help groups and community-driven projects in low-income areas.
- Mixed-Use Development: Promote zoning policies that prevent the formation of ghettos and improve access to jobs.
Regional Development Initiatives
Balanced regional development is crucial. Economic activities should be incentivised in smaller towns and cities. This can relieve pressure on megacities and improve living standards across regions.
Promoting Sustainable Livelihoods
Encouraging the growth of labour-intensive industries is essential. Access to credit and business development services can help small enterprises flourish. Successful models, like Kerala’s Kudumbashree network, demonstrate effective community involvement.
Enhancing Social Security Access
Portability of social security programmes is vital. This would allow urban poor to access financial services, banking, and insurance. Improved access can impact their living conditions.
