India’s Battle Against Extreme Poverty: A Decade of Remarkable Progress

07 Jun India’s Battle Against Extreme Poverty: A Decade of Remarkable Progress

This article covers “Daily Current Affairs”  and the Topic India’s Battle Against Extreme Poverty: A Decade of Remarkable Progress

SYLLABUS MAPPING: 

GS-2- Social issue – India’s Battle Against Extreme Poverty: A Decade of Remarkable Progress

FOR PRELIMS

What are the socio-economic implications of rapid urban poverty reduction in India?

FOR MAINS

What lessons can India learn from its poverty reduction experience to achieve Sustainable Development Goals (SDGs)?

Why in the News? 

According to the World Bank, India’s extreme poverty has seen a remarkable decline, falling to 5.3% in 2022–23 from 27.1% in 2011–12. This significant reduction means that over 269 million people have moved out of extreme poverty in the past decade. The data highlights substantial improvements in income levels, access to government welfare schemes, and overall living conditions. This progress is considered a crucial milestone in India’s journey toward becoming a developed economy in the coming decades, reflecting the impact of inclusive growth and targeted social interventions.

What is Poverty and Extreme Poverty?

Extreme poverty, as per the World Bank, refers to living on less than $2.15/day (2017 prices) or $3.00/day (2021 prices), based on Purchasing Power Parity (PPP). It reflects the minimum income needed to meet basic survival needs. In contrast, Multidimensional Poverty, measured by the UNDP’s Multidimensional Poverty Index (MPI), considers broader deprivations in health, education, and living standards, including access to nutrition, schooling, clean water, sanitation, and housing.

Statistical Highlights

Regional Dimensions

1. Key states leading poverty reduction: Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh.
2. Major impact: These five states together accounted for around two-thirds of the total number of people lifted out of poverty.
3. Focus on rural areas: Progress was concentrated in rural and high-poverty districts, where interventions were most needed.
4. Effective targeting: Reflects the success of region-specific policies and welfare programs.
5. Policy implication: Reinforces the importance of focused efforts in economically weaker states for inclusive national development.

Socio-Economic Factors Driving Poverty Decline

Challenges Ahead in Poverty Reduction

1. Vulnerability of Near-Poverty Populations: People living just above the poverty line remain at risk of slipping back into poverty due to economic shocks or insufficient safety nets.
2. Urban Poor and Basic Service Deficits: Urban poor populations struggle with limited access to affordable housing, healthcare, sanitation, and other essential services.
3. Informal Sector Workers’ Insecurity: Workers in the informal economy often lack social security benefits, stable employment, and protections, making them vulnerable.
4. Migrant Laborers’ Job and Welfare Insecurity: Migrant workers face uncertain job prospects and frequently have limited access to government welfare programs.
5. Climate Change Impact on Livelihoods: Agriculture and rural livelihoods are increasingly threatened by climate variability, leading to income instability.
6. Pandemic-Induced Economic and Health Vulnerabilities: COVID-19 and other health crises have aggravated poverty through job losses, health costs, and reduced access to services.
7. Effects of Global Inflation and Supply Chain Disruptions: Rising prices of essential goods and disrupted supply chains increase the cost of living, hitting poor households hardest.
8. Persistent Regional Disparities: Certain states and rural regions lag in poverty reduction due to uneven development and infrastructure deficits.

Way forward 

1. Enhance Quality Education and Skill Development: Invest in accessible, quality education and vocational training to empower individuals with better employment opportunities.
2. Improve Nutrition and Healthcare Services: Strengthen nutrition programs and healthcare infrastructure to address malnutrition and health-related poverty traps.
3. Strengthen Urban Employment and Social Protection: Expand and improve urban livelihood schemes and social safety nets to support vulnerable urban populations.
4. Advance Digital and Financial Inclusion: Promote digital literacy and financial inclusion to ensure equitable access to services and economic opportunities.
5. Focus on Robust Data Collection and Monitoring: Improve data systems to accurately identify poverty, monitor progress, and design targeted interventions.
6. Address Income Inequality Through Progressive Policies: Implement measures such as progressive taxation and equitable resource distribution to reduce economic disparities.
7. Reduce Regional Disparities by Promoting Balanced Development: Invest in infrastructure, healthcare, and education in lagging regions to ensure inclusive growth across states.

Conclusion

India’s remarkable reduction in extreme poverty over the past decade stands as a testament to the country’s sustained commitment to inclusive growth, targeted social welfare programs, and improved governance. The significant strides made in lifting over 269 million people out of extreme poverty reflect the impact of well-designed schemes like PM Awas Yojana, Ayushman Bharat, and financial inclusion initiatives, combined with digital infrastructure and rural employment programs. However, the journey ahead remains complex and challenging. Persistent vulnerabilities among near-poor populations, urban poverty, informal sector insecurity, climate change risks, and regional disparities require continued and focused policy attention.

Prelims Questions

Q.  With reference to India’s extreme poverty reduction, consider the following statements:
1. India’s extreme poverty rate fell from 27.1% in 2011-12 to 5.3% in 2022-23.
2. The decline in extreme poverty has been significant only in urban areas, while rural poverty has remained largely unchanged.
3. The Jan Dhan Yojana and PM Ujjwala Yojana are among the key government schemes that contributed to poverty reduction.
How many of the above-given statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

Answer: B

Mains Questions

Q. “Discuss the factors that contributed to the significant decline in extreme poverty in India between 2011–12 and 2022–23. What are the major challenges that remain in poverty alleviation, and suggest a way forward?”

                                                                                                                                                         (250 words, 15 marks)