(a) The poverty ratio declined between 1993-94 and 2004-05 but the number of poor remained at about 407 million because the total population of the country increased during the same period. Out of this increased population, more people got employment due to the Green Revolution, establishment of more industries and growth of the tertiary sector. As a result, the poverty ratio declined.
(b) The dynamics of poverty reduction are not the same ’ in rural and urban areas because the conditions in both the areas are completely different.
In urban areas, poverty has decreased due to expansion of the service sector, increased industrialisation and consequent increase of jobs. This has resulted in migration to cities and towns from rural areas.
In rural areas, poverty has reduced due to improved agricultural practices resulting in higher incomes. Some contribution to this improvement is due to the migration to urban areas.