Poverty Reduction in India: A Decade of Transformation

Context

India has witnessed remarkable progress in poverty reduction over the last decade, showcasing significant achievements across social and religious groups. This critically evaluates the Narendra Modi government’s efforts to address poverty from 2011-12 to 2023-24, assessing whether these initiatives align with democratic ideals of inclusivity and upliftment of marginalized communities. Using the Rangarajan poverty line methodology, we analyze the data and policy measures that have contributed to this transformation.

Measuring Poverty

The measurement of poverty in this analysis is based on the Rangarajan poverty line, which was proposed in 2014 but not officially adopted by the Government of India. This methodology incorporates three critical features:

1. Modified Mixed Recall Period (MMRP): A detailed approach to household expenditure data collection, yielding estimates closer to reality.
2. Calorie Requirements: Food poverty lines are based on Indian Council of Medical Research norms for calorie needs.
3. Non-Food Components: Greater emphasis on urban non-food expenditures like education, medical care, and housing.

For 2023-24, these poverty lines were adjusted using state-level Consumer Price Index data to reflect current economic conditions.

Achievements in Poverty Reduction

• Decline in Extreme Poverty: India has nearly eliminated extreme poverty as measured by the international $1.90 PPP line. The Headcount Poverty Ratio (HCR) dropped from 12.2% in 2011-12 to just 2% in 2022-23. Rural poverty declined to 2.5%, while urban poverty fell to 1%. At the $3.20 PPP line, HCR reduced from 53.6% to 20.8%, indicating significant improvements in living standards.
• Multidimensional Poverty Reduction: Between 2015-16 and 2019-21, India halved its multidimensional poverty rate from 24.85% to 14.96%, with rural areas witnessing the fastest decline—from 32.59% to 19.28%. Over nine years, approximately 24.82 crore Indians escaped multidimensional poverty due to targeted government interventions.

Inclusive Growth Across Communities

• Social and Religious Groups: The reduction in poverty has been inclusive, benefiting minorities and vulnerable groups significantly. States like Bihar, Uttar Pradesh, and Odisha demonstrated substantial progress, reflecting targeted efforts under programs such as the Aspirational Districts Program.
• Urban vs Rural Trends: Rural areas experienced higher per capita consumption growth (3.1% annually) compared to urban areas (2.6%). This disparity highlights the impact of rural-focused policies such as universal access to electricity, sanitation, modern cooking fuel, and piped water.

Policy Measures Driving Progress

Government Welfare Programs: Several initiatives have directly contributed to poverty reduction:

• Pradhan Mantri Awas Yojana: Affordable housing for rural and urban poor.
• Swachh Bharat Mission: Improved sanitation facilities.
• Ujjwala Yojana: Access to clean cooking fuel.
• Har Ghar Jal: Piped water supply for households.
• National Food Security Act: Free food distribution covering two-thirds of the population.

Focus on Education and Health: Investments in universal education and healthcare have enhanced human capital development, enabling communities to rise above poverty barriers.

Challenges and Areas for Improvement

1. Regional Disparities: States like Chhattisgarh still report higher poverty rates compared to others.
2. Urban Inequality: Although urban inequality declined significantly (Gini coefficient from 36.7 to 31.9), disparities remain in access to non-food essentials like housing and healthcare.
3. Transitioning to Higher Poverty Lines: With extreme poverty nearly eliminated, India must redefine its benchmarks for identifying beneficiaries under social protection programs.

Democratic Ideals and Upliftment

Democracy is not just about elections but also about addressing fundamental needs of marginalized sections of society. The Modi government’s focus on inclusive growth aligns with these ideals by ensuring welfare programs reach all communities regardless of political affiliations or voting patterns.

Conclusion

India’s progress in reducing poverty over the last decade is a testament to effective governance and inclusive policies that prioritize marginalized groups’ welfare. While challenges remain, the country’s success in eliminating extreme poverty and halving multidimensional poverty reflects its commitment to democratic principles of equity and social upliftment.

 Source: The Indian Express

Download as PDF