Addressing Poverty: A Comprehensive Approach

  Editorial   Mar 7, 2025  Add to Reading List
Addressing Poverty: A Comprehensive Approach

India's innovative approach to poverty alleviation is gaining global recognition. The adoption of the "Graduation Approach," pioneered by the Bangladesh Rural Advancement Committee (BRAC) and implemented across 50 countries, represents a shift from cash handouts to comprehensive support systems. However, while significant progress has been made, the journey to eradicating poverty is far from complete.

1. The Evolution of Poverty Estimation in India
a)Pre-Independence Era

  • Dadabhai Naoroji’s Poverty Line (1867):
    • Estimated minimum annual subsistence at Rs. 16–35 per capita (1867-68 prices).
    • Defined poverty in terms of basic food, clothing, and shelter needs.
  • National Planning Committee (1938):
    • Led by Subhash Chandra Bose, emphasized a minimum standard of living.
    • The Bombay Plan (1944) proposed Rs. 75 per capita as the poverty line.

b) Post-Independence Approaches

  • 1962: First Official Estimation
    • Defined poverty using consumption expenditure at Rs. 20 per capita per month.
  • 1971: Dandekar and Rath Committee
    • Introduced calorie-based poverty lines (2,250 calories/day) with Rs. 17 for rural areas.
  • 1979: Alagh Committee
    • Set poverty lines for rural and urban areas based on nutritional needs and inflation-adjusted expenditure.
  • 1993: Lakdawala Committee
    • Continued calorie-based estimation and introduced state-specific poverty lines.
  • 2009: Tendulkar Committee
    • Transitioned to a broader consumption basket, adding health and education expenses.
    • Unified rural and urban poverty lines.
  • 2014: Rangarajan Committee
    • Suggested revised poverty thresholds of Rs. 32/day (rural) and Rs. 47/day (urban), but its recommendations were rejected.

c) Modern Metrics

  • Multidimensional Poverty Index (MPI): Captures non-income dimensions of poverty like health and education.
  • Periodic Labour Force Surveys (PLFS): Provides updated data on income and employment.

2. Current Status of Poverty in India

  • Decline in Multidimensional Poverty:
    • Dropped from 29.17% (2013-14) to 11.28% (2022-23).
    • 129 million Indians live on less than $2.15/day in 2024.
  • Rural vs. Urban Divide:
    • Rural poverty: Declined from 32.59% to 19.28%.
    • Urban poverty: Dropped from 8.65% to 5.27%.
  • Key Contributors to Progress:
    • Improved access to sanitation, cooking fuel, nutrition, and education.
    • States like Uttar Pradesh, Bihar, and Odisha led poverty reduction efforts.

3. Persistent Challenges
a) Economic Inequality

  • The wealthiest 10% own 57% of the national income, while the bottom 50% hold just 13%.

b) Employment and Informal Sector Vulnerability

  • Unemployment remains at 7-8%, with urban areas faring worse.
  • 80% of the workforce lacks job security, perpetuating poverty.

c) Rural and Urban Poverty

  • Rural Issues:
    • Low agricultural productivity and dependency, with 70% relying on farming.
  • Urban Issues:
    • Rapid urbanization increases slum populations and strains housing and sanitation infrastructure.

d) Health Inequities

  • Out-of-pocket health expenses account for 58.7% of healthcare spending.
  • Malnutrition and maternal mortality remain high in rural and marginalized communities.

e) Educational Gaps

  • Learning poverty was at 56.1% pre-pandemic, with millions lacking access to quality education.

f) Climate Vulnerabilities

  • Poor communities are disproportionately affected by extreme weather events, worsening poverty cycles.

4. Strategies for Effective Poverty Alleviation
a) Education and Skill Development

  • Strengthen schemes like Samagra Shiksha Abhiyan with digital tools and teacher training.
  • Bridge the digital divide by expanding affordable internet access.
  • Align Pradhan Mantri Kaushal Vikas Yojana (PMKVY) with industry-specific needs.

b) Rural Livelihood Diversification

  • Enhance MGNREGA with skill-based projects.
  • Promote rural entrepreneurship through SVEP and allied sectors like dairy and fisheries.

c) Social Safety Nets

  • Expand PM-KISAN and universalize PDS with better targeting.
  • Introduce unemployment insurance for informal sector workers.

d) Financial Inclusion

  • Scale up Pradhan Mantri Jan Dhan Yojana (PMJDY) with financial literacy campaigns.
  • Strengthen rural credit access through NABARD initiatives.

e) Food Security and Nutrition

  • Fortify staples in PDS and focus on high-burden districts under Poshan Abhiyan.
  • Expand community kitchens and mid-day meal programs.

f) Empowering Marginalized Groups

  • Increase access to credit and entrepreneurship opportunities for women under DAY-NRLM.
  • Enforce gender budgeting across all states.

g) Climate-Resilient Development

  • Expand PM Fasal Bima Yojana with timely payouts.
  • Promote agroforestry and solar energy solutions for rural areas.

h) Micro, Small, and Medium Enterprises (MSMEs)

  • Provide easier credit access and global market connections.
  • Encourage rural and low-skilled employment under Make in India.

i) Integrated Urban-Rural Policies

  • Expand the One District, One Product (ODOP) initiative.
  • Develop satellite towns with affordable housing and job hubs.

j) Digital Access and Literacy

  • Scale up BharatNet to connect rural areas with high-speed internet.
  • Expand e-learning and digital platforms like e-Shram for economic integration.

Key Takeaways
While India has made notable progress in reducing multidimensional poverty, challenges like inequality, unemployment, and access disparities persist. Addressing these issues requires a comprehensive, region-specific, and inclusive approach. By prioritizing social protection, education, rural development, and climate resilience, India can move closer to achieving its poverty eradication goals.