NCERT Class 11 Economics — Chapter 4: Poverty

mcqeasy

Which of the following best describes the origin of the urban poor in India?

Official previous-year question

Verified 1 Aug 2026.

Options

AThey are descendants of the urban merchant class who lost wealth.
BThey consist mainly of skilled workers who lost jobs due to automation.
CThey are largely the overflow of the rural poor who migrated in search of livelihood.
DThey are primarily the result of de-industrialization in urban centers.

Did you get this right?

Solution

The correct option is They are largely the overflow of the rural poor who migrated in search of livelihood..

Explanation

In the context of the Indian economy, the demographic composition of the urban poor is intrinsically linked to the structural dynamics of the rural economy and inter-regional migration patterns.

Detailed Analysis:

Rural-Urban Migration: The urban poor in India are largely comprised of individuals who have migrated from rural areas. This migration is driven by "push factors" such as the lack of employment opportunities in agriculture, fragmentation of land holdings, and general rural distress.
Nature of Employment: Upon migrating to urban centers, these individuals often lack the specific skills or education required for the formal organized sector. Consequently, they are absorbed into the informal sector as casual laborers, street vendors, rickshaw pullers, or construction workers.
Economic Characterization: Economists and policymakers, including references in standard texts, characterize the urban poor as the "overflow" of the rural poor. They transfer their poverty from a rural setting to an urban setting in search of better livelihood prospects, often ending up in slums or squatter settlements.
Incorrect Options:
- They are primarily the result of de-industrialization in urban centers. is incorrect because while de-industrialization has historical significance, it is not the primary origin of the vast majority of the current urban poor population.
- They consist mainly of skilled workers who lost jobs due to automation. is incorrect because the urban poor are predominantly unskilled or semi-skilled workers, not skilled workers displaced by automation.
- They are descendants of the urban merchant class who lost wealth. is incorrect as it does not reflect the sociological or economic reality of the urban poor demographic in India.

Key Takeaway:

Urban poverty in India is primarily an extension of rural poverty, resulting from the migration of the rural workforce to cities due to the lack of livelihood security in the agricultural sector.

Your note

More from Chapter 4: Poverty

The 'Growth-oriented approach' to poverty reduction was based on which of the following expectations?

easy

Consider the following statements regarding the categorization of poverty: 1. The 'Chronic Poor' category includes only those who are never poor. 2. The 'Churning Poor' are those who regularly move in and out of poverty. 3. The 'Transient Poor' category includes both the churning poor and the occasionally poor. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the impact of British rule on the Indian economy: 1. The British policies involved lowering rural taxes to support small farmers. 2. Under British rule, India was transformed from an exporter of manufactured cloth to an exporter of raw cotton. 3. The main goal of the British Raj was to develop India into a self-sufficient industrial power. Which of the statements given above is/are correct?

medium

Which of the following are cited as general, economy-wide problems causing poverty in India? 1. Low capital formation 2. Lack of infrastructure 3. Lack of demand 4. Pressure of population Select the correct answer using the code given below:

easy

Consider the following statements regarding land distribution and agriculture in India: 1. Since independence, the government has attempted to redistribute land from those with large amounts to those who have none. 2. The land redistribution move was fully successful in making all agricultural workers productive. 3. Small farmers often possess land that is less fertile and dependent on rains. Which of the statements given above is/are correct?

medium

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The correct option is They are largely the overflow of the rural poor who migrated in search of livelihood..

Explanation

In the context of the Indian economy, the demographic composition of the urban poor is intrinsically linked to the structural dynamics of the rural economy and inter-regional migration patterns.

Detailed Analysis:

Rural-Urban Migration: The urban poor in India are largely comprised of individuals who have migrated from rural areas. This migration is driven by "push factors" such as the lack of employment opportunities in agriculture, fragmentation of land holdings, and general rural distress.
Nature of Employment: Upon migrating to urban centers, these individuals often lack the specific skills or education required for the formal organized sector. Consequently, they are absorbed into the informal sector as casual laborers, street vendors, rickshaw pullers, or construction workers.
Economic Characterization: Economists and policymakers, including references in standard texts, characterize the urban poor as the "overflow" of the rural poor. They transfer their poverty from a rural setting to an urban setting in search of better livelihood prospects, often ending up in slums or squatter settlements.
Incorrect Options:
- They are primarily the result of de-industrialization in urban centers. is incorrect because while de-industrialization has historical significance, it is not the primary origin of the vast majority of the current urban poor population.
- They consist mainly of skilled workers who lost jobs due to automation. is incorrect because the urban poor are predominantly unskilled or semi-skilled workers, not skilled workers displaced by automation.
- They are descendants of the urban merchant class who lost wealth. is incorrect as it does not reflect the sociological or economic reality of the urban poor demographic in India.

Key Takeaway:

Urban poverty in India is primarily an extension of rural poverty, resulting from the migration of the rural workforce to cities due to the lack of livelihood security in the agricultural sector.