The urban communities, between in 1972-73 2%, 1993-94 2.8%

 The main purpose of economic reform was to decrease
poverty, rise the employment rate and uphold of living condition of the poor,
between 1972-73 and 1993-94 the continuing unemployment proportion among rural
and urban communities, between in 1972-73 2%, 1993-94 2.8% in rural India, and
between in 1973-74 4.5%, in 1993-94 6.5% in Urban India, their poverty is
reflected by their earnings rather than by their unemployment status (Jha, 2000). Majority of
population is living in rural areas as per survey data 2001 total population
was 102.9 crores where rural population was 74.3% as per census data 2011 total
population is 121.0 crores where rural population is 83.3%, India’s overall
literacy rate in 2001 was 64.8% where as in rural area it was 58.7 and in urban
areas it was 79.9 in
2011 total literacy is 74.0% where rural literacy is 68.9% and urban is 85.0%. (Chandramouli,
2011)

            Economic reform in India was crate
regional difference among state to state and rural to urban in terms of
socio-economic development, the new economic  reform have been followed in to Industrial area
as effect of this economic policy would have wide regional disparity and
changing in income distribution among states,  this income change create income inequality
and poverty among sates and rural and urban, new economic reform more urban
based, this changes resulting many problems in urban-rural areas, In India
after the 1991-92 the poverty dropt comparing to before 1991 (1993-94, &
1999-2000 period 1 & 2)  in the 1st
period of economic reform the deference of poverty between urban & rural
was little but in the second period it was big gap between rural and urban, in
the same period among the state also poverty and urbanization, rural problems identified. (N.R.
Bhanumurthy and Arup Mitra, 2014)

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Table1. Growth in Real GDP (&) per
annum 

S.L
No

Period

Agriculture

Industry

GDP

1.

1950s

2.7

5.6

3.6

2

1960s

2.5

6.3

4.0

3

1970s

1.3

3.6

2.9

4

1980               

4.4

5.9

5.6

5

1990s

3.2

5.7

5.8

6

2000s

2.5

7.7

7.2

7

 2011-12 to 2015-16 (NS)

1.7

5.5

6.5

NS: New Series
with 2011-12 based

 

            The Above table clearly indicate
that growth of agriculture sector and industrial sector as we know the
industries are established in urban area where the employment and earnings
& wages are high compare to the rural areas and agriculture sector was
growing slow which crated income inequality and poverty, in agriculture area
from last year its coming down which is the main source of income for rural
India  the above table indicates how the gap
between the urban and rural communities in equal in India.

Table
2 Urban and rural literacy rate in India since 1991-2011

S.L
No

Year

Urban
Literacy

Rural
Literacy

Total
Literacy

Gap
in Literacy

1.     
 

1991

67.2%

36%

52.2%

31%

2.     
 

2001

79.9%

58.7%

64.8

21%

3.     
 

2011

85.0%

68.9

74.0

17%

Source: Census of India. Ministry of
Home Affairs Government of India. 
1991-2011data.

The
table no 2 shows that the literacy rate in India still we are not reached up
the expectation from 1991 to 2011 hug gap created between the urban and rural
1991, 2001,2011, the gap was 31%,21%,17% respectively,

Table 3 Poverty Line in 2011-12

 

Tendulka Committee

Rangarajan Committee.

 

Monthly
Per Capita

Monthly
Per  Household

Per
Year per House Hold

Monthly
Per Capita

Monthly
Per  Household

Per
Year per House Hold

Rural

860

4080

48,960

972

4860

58,320

Urban

1000

5000

60,000

1407

7035

84,420

Source:
GOI 2009 – 2014

            This table shows that, the income
and expenses of people among rural and urban whereas rural people are earn less
and their expenses also very less compare to urban areas it shows the
distribution of income in India.  

 

Table 04: Poverty Ratio and Number of Poor: Expert
Group ( Lakdawala) Method 2009

S.L NO

Year

Poverty
Ratio %

Rural

Urban

1.

1973-74

56.4

49.0

2.

1977-78

53.1

45.2

3.

1983-84

45.7

40.8

4.

1987-88

39.1

38.2

5.

1993-94

37.3

32.4

6.

2004-05

28.3

25.7

7.

2011-12 (Dr. C
Rangarajan Report Planning commotion chairman 2014)

30.9

26.4

Sources: Government of India,
Planning Commotion Report 2009-2014. 

 

 

 

 

 

 

Table 5 Poverty in 2016-17

Rural Poverty

Urban Poverty

Rural and
Urban
Combined

Per Capita Per
Month  Rural
 

Per Capita Per
Month Urban

28.3
%

25.7
%

27.5
%

356.30

538.60

Source:
Perspective planning Commission, Government of India New Delhi

            The above tables table number 04 %
05 respectively shows that the poverty ratio among rural and urban communities
after economic reform also we are not achieve the equality in poverty and
income distribution in India. 

Data base analysis between rural
and urban:

The
above tables from table number 1 to 5 are shows that, various factors which
affect the poverty and income inequality among urban and rural people, in India.
More than 70% of population is living in rural area. Rural people are more
depended on agriculture and related income, but economic reforms mostly
concentered on urban areas and industries, which was marked in number of
development at the same time invisible pains also erupted, the above data
clearly shows that, the economic reform and post period of reform was effected
rural areas and their income which Cause poverty. Income inequality, slow
growth of literacy, problem of rural employment, low quality of life  many more problems were pointed out where
compare to urban areas rural peoples were more effected by the economic reform
in India.

            Due to economic reforms in India
created vistas for urban development and industrialization. En numbers of job
opportunities have been created and new technologies have adopted. in mean time
the people from rural area used to migrate to urban area for seeking
livelihood, for doing so urban areas filled with huge population hence,
different problems were raised in urban area. In other context rural areas were
affected due to urban centered economic reform. The rural economy being
neglected, even though, the rural sectors contribute more for Indian economy.
The negligence created lack of innovative technologies in agriculture, downfall
of agriculture market, diminishing value for domestic industries these are all
causes for unemployment in rural areas intern it led to poverty.

 

Policy
Implication

            The Government of India made number
of policies and programmes to improve the agriculture sector but sill it is not
up the level of expectation the economic reform was completely neglected area
therefor exclusively agriculture reform is necessary  to meet the expectation of present and
upcoming population in the country. 
Importance must be given to the agriculture sector in all future reforms
because the agriculture sector will create many jobs; this sector also includes
the rural industrialization cottage industries homemade industries and overall
rural development. This will be rise income of the formers and rural labours on
sustainable form. There is one more urgent need to raise public investment in
the field of agriculture. Some important area need investment is irrigation,
watershed development, rural infrastructure, housing, sanitation, employment;
drinking water this will help the income equality among rural and urban.

            With the agriculture reform we need
to look after about good governance, the prime objective of the government
should be welfare of the natation not only the development of the nations this
two concept are similar but this crate cap between the rural and urban and rich
and poor in the country, in future economic reform should be more people center
to enhance the capacity of the population and need is to enhance the social
empowerment in quality basis of the marginal groups of the society.  This will be the economic growth of the
nation and also it reduce the gap between rich and poor urban and rural poverty
and income inequality will be reduce, through capacity building skill
development crating job and business environment and helping rural people not
only in agriculture but also business industries trade etc., for this changes
and development we need good governess with corruption less and selfishness.         

Conclusion:

            The pains and gains of the new
economic reforms was pointed many changes and development in India. The economic
reform was created remarkable changes in Indian economy. Which was welcome, but
some of inequality created unknowingly that should be rectified through the
future policy implications. The post economic reform period was not bad, with
respect to potential problems of growing. Economic reform has done better, it’s
very clear there are policy improvement that can help future in managing income
and development among rural and urban. The new reform must have long term
vision of transforming country in to world economic power in coming days; also government
should give equal priority to urban and rural, poor and rich in the country.