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Decline of Poverty in India: NCAER

Context

Recent research by the National Council of Applied Economic Research (NCAER) has highlighted a significant decline in poverty in India, despite challenges posed by the pandemic. According to the study titled 'Rethinking Social Safety Nets in a Changing Society', poverty has decreased from 21.2% in 2011-12 to 8.5% in 2022-24.

What is Poverty?

Poverty goes beyond income scarcity, encompassing challenges like poor health, inadequate education, unsafe living conditions, and vulnerability to violence.
The NITI Aayog currently measures poverty through Multidimensional Poverty Index (MPI). The MPI captures overlapping deprivations (dimensions of poverty) in health, education and living standards.
Multidimensional Poverty: Measures multiple deprivations in daily life such as poor health, lack of education, inadequate living standards, disempowerment, poor quality of work, the threat of violence, and living in areas that are environmentally hazardous, among others.
Multidimensionally poor:An individual who is deprived of one-third or more of the weighted indicators.
Extreme Multidimensional Poverty: Any person deprived of one-half or more of the weighted indicators.

Key-findings of the Report

Poverty declined significantly between 2004-2005 and 2011-12 (from a headcount ratio of 38.6 to 21.2), and it continued to decline between 2011-12 and 2022-24 (from 21.2 to 8.5) despite the challenges posed by the pandemic.
Responsible factors for decline in poverty: Economic growth played a crucial role in this positive trend. Even amidst pandemic difficulties, poverty continued to decrease, underscoring the resilience of India's economic fabric.

Challenges: As India progresses towards equitable development, adapting social protection programs becomes crucial.

Required measures: The research emphasizes that traditional strategies for chronic poverty may need revision, as economic growth shifts the focus towards addressing transient factors like natural disasters, health crises, and changes in employment opportunities.

How poverty impacts India’s economy?	Benefits of reducing Poverty
Less number of people getting resources. Growth inclination as rich becomes richer and poor becomes poorer Low income generation Drop in standard of living conditions Cheap labour and man-power available Gender inequality Low rate of education	Enhanced Quality of Life (health, education, and living standards) A more skilled and healthy workforce, potentially boosting productivity, innovation Empowerment of Marginalized Communities Higher Consumer Demand Increased school attendance and educational attainment Greater social cohesion Increased awareness and capacity for environmental stewardship

Fact Box:

Poverty Line

The poverty line recommended by the Tendulkar Committee Report was set to Rs 447 and Rs 579 for rural and urban areas, respectively, but varied between states for 2004-2005. These poverty thresholds were subsequently adjusted by The Planning Commission to Rs 860 and Rs 1,000 for 2011-12.
So far, 6 Official Committees have estimated the number of people living in poverty.
- The working group of 1962
- V N Dandekar and N Rath (1971)
- Y K Alagh (1979)
- D T Lakdawala (1993)
- Suresh Tendulkar (2009)
- C Rangarajan (2014)

Government Measures to eliminate poverty:

October 17 is observed as the International Day for the Eradication of Poverty.
National Food for Work Programme: The National Food for Work Programme was launched on November 14, 2004 in 150 most backward districts of the country with the objective to intensify the generation of supplementary wage employment.
Swaranjayanti Gram Swarozgar Yojana (SGSY): SGSY, launched in April 1999, aims at bringing the assisted poor families (Swarozgaris) above the poverty line by organizing them into Self Help Groups (SHGs) through a mix of Bank credit and Government subsidy.
Sampoorna Grameen Rozgar Yojana (SGRY): SGRY, launched in 2001, aims at providing additional wage employment in all rural areas and thereby food security and improve nutritional levels. The SGRY is open to all rural poor who are in need of wage employment and desire to do manual and unskilled work around the village/habitat. The programme is implemented through the Panchayati Raj Institutions (PRIs).
Pradhan Mantri Gramodaya Yojana (PMGY): PMGY launched in 2000-01 envisages allocation of Additional Central Assistance (ACA) to the States and UTs for selected basic services such as primary health, primary education, rural shelter, rural drinking water, nutrition and rural electrification.
Rural Employment Generation Programme (REGP): To create self-employment opportunities in rural areas and small towns, it is being implemented by the Khadi and Village Industries Commission (KVIC).
Prime Minister’s Rozgar Yojana (PMRY): The objective is making available self-employment opportunities to the educated unemployed youth by assisting them in setting up any economically viable activity.

PYQ

Q1: ‘Despite the implementation of various programmes for the eradication of poverty by the government in India, poverty is still existing’. Explain by giving reasons. (2018)

Q2: “An essential condition to eradicate poverty is to liberate the poor from the process of deprivation.” Substantiate this statement with suitable examples. (2016)

Anusandhan National Research Foundation (ANRF)

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Polity & Governance Governance

GS Analyst: Daily Current Affairs

Decline of Poverty in India: NCAER

What is Poverty?

Key-findings of the Report

How poverty impacts India’s economy?

Benefits of reducing Poverty

Fact Box:

Government Measures to eliminate poverty:

PYQ

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