Poverty

About

• Poverty refers to a circumstance in which individuals are unable to satisfy their simple wishes. Its definition and measurement vary throughout countries. 
• In India, poverty is classified by the number of people residing under the Poverty Line, which represents a threshold income level.
• Households with consumption under this stage are considered terrible. 
• The poverty line represents the minimum earnings level vital to fulfill basic needs, and varies throughout countries depending on their typical financial conditions.

Poverty measurement in India

• India’s poverty estimation has advanced over decades, beginning with V N Dandekar and N Rath in 1971 who defined the poverty line based on calorie intake (2,250 energy consistent with individual according to day, based on National Sample Survey records of 1960-61), setting it at Rs 15 for rural and Rs 22.5 for urban regions. 
• In 1979, the Y K Alagh Task Force set poverty lines primarily based on calorie needs of 2,400 calories (rural) and 2,100 calories (urban), which remained the traditional method till the 1990s.
  • But this approach was criticized for not reflecting poverty.
• In 1993, the Lakdawala Committee added country-specific poverty lines thinking about regional cost differences but confronted complaints for shifting far from calorie requirements.
• In 2009, the Tendulkar Committee endorsed foremost changes, consisting of moving awareness from calorie-based poverty traces to dietary effects, using a uniform basket for rural and concrete regions, adjusting rate calculations, and including health and training prices in poverty size.
  • According to this method, the 2009–10 poverty line was set at ₹673 per month for rural areas and ₹860 for urban regions. 
  • Individuals spending less than these quantities had been classified as living below the poverty line.
  • The closing reliable poverty statistics from 2011-12, based on Tendulkar’s line, confirmed 21.9% of Indians below poverty.
• In response, the Rangarajan Committee (2012-14) reinstated separate rural and concrete poverty strains, elevating poverty thresholds extensively.
• However, the government did not formally adopt this document. 

Trends of poverty in India

• The universal poverty charge dropped from 29.5% in 2011–12 to 9.5% in 2022–23 and in addition to 4.9% in 2023–24. 
• This trend aligns with an increase in GDP growth and a decline in trendy inflation, although food inflation rose barely. 
• Welfare programmes remained largely unchanged, suggesting that financial growth may be a key factor in recent poverty reduction. 
• The World Bank recently launched a Poverty & Equity Brief for over 100 developing nations. 
• It suggested a vast decline in excessive poverty, from 16.2% in 2011–12 to 2.3% in 2022–23. 
• Analysis suggests most of the terrible are clustered just under the poverty line, whilst many non-poor are barely above it, indicating that poverty is not deeply entrenched.
• Even when poverty lines are raised to 125%, the decline remains giant. 
• Inequality, measured by the Gini coefficient, fell from 0.310 in 2011–12 to 0.253 in 2023–24, with a surprisingly sharp decline between 2022–23 and 2023–24.

Governments Steps 

• The Government of India has made significant strides in enhancing the quality of life and reducing poverty in its many forms.
• The programme carried out by using the government to generate Employment and alleviate poverty are – The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Swarnjayanti Gram Swarozgar Yojana (SGSY), and Swarna Jayanti Sahari Rozgar Yojna (SJSRY).
• Key projects consisting of Poshan Abhiyan and Anemia Mukt Bharat have extensively stepped forward access to healthcare, leading to a marked reduction in deprivation. 
• The government also operates one of the world’s biggest food security programs—the Targeted Public Distribution System under the National Food Security Act.
• Decisions, including extending free food grain distribution under Pradhan Mantri Garib Kalyan Anna Yojana for another 5 years, exemplify the Government’s dedication. 
• Various programs addressing maternal health, clean cooking gas distribution through Ujjwala Yojana, stepped forward electricity coverage through Saubhagya, and transformative campaigns like Swachh Bharat Mission and Jal Jeevan Mission have collectively accelerated living conditions and standard well-being of people.
• Also, flagship programs like Pradhan Mantri Jan Dhan Yojana and PM Awas Yojana have performed pivotal roles in financial inclusion and presenting secure housing for the underprivileged.

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