Poverty is a condition characterized by the lack of financial resources and essentials required for a minimum standard of living. It reflects the inability to meet basic needs such as food, shelter, and healthcare. As per the World Bank, poverty signifies deprivation in well-being encompassing low income, poor health, inadequate education, and limited access to clean water and sanitation. Globally, 8% of workers and their families lived on less than $1.90 per person per day in 2018. In India, as of 2011, 21.9% of the population was below the national poverty line.
Two main types of poverty are:
- Absolute Poverty: Defined as income below the level required to sustain basic living standards. The World Bank reset this threshold to $1.90 a day in 2015.
- Relative Poverty: This focuses on income inequality by comparing living standards within a population, measured against a proportion of median income.
In India, poverty estimation is based on consumption expenditure surveys conducted by the National Sample Survey Office. Notable methodologies include:
- Alagh Committee (1979): Established calorie-based poverty lines of 2400 calories/day for rural and 2100 calories/day for urban areas.
- Rangarajan Committee (2014): Set the poverty line at a Monthly Per Capita Expenditure (MPCE) of ₹972 for rural and ₹1407 for urban households.
What Causes Poverty in India?
The persistence of poverty in India stems from a complex interplay of economic, social, and historical factors:
- Population Explosion: India’s population growth of 2.2% annually adds approximately 17 million people each year, increasing demand for resources.
- Low Agricultural Productivity: Challenges such as fragmented landholdings, traditional farming methods, and poor storage facilities lead to low yields.
- Unemployment: With an ever-increasing population, job creation lags, resulting in disguised unemployment, particularly in rural areas.
- Colonial Exploitation: Colonial policies disrupted India’s traditional industries, converting it into a raw material supplier for Europe.
- Climatic Vulnerabilities: States like Bihar, Odisha, and Jharkhand often face natural disasters such as floods and cyclones, causing recurring agricultural losses.
- Social Inequities: Factors like the caste system, inheritance laws, and entrenched traditions perpetuate poverty cycles.
What are India’s Key Poverty Alleviation Programs?
India has implemented numerous poverty alleviation programs, targeting employment, housing, food security, and skill development. Key initiatives include:
- Integrated Rural Development Programme (IRDP): Introduced in 1978-79, this program provided subsidies and bank credit for employment opportunities.
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees 100 days of wage employment annually for rural households, reserving one-third of jobs for women.
- Indira Awaas Yojana (IAY): Focuses on free housing for Below Poverty Line (BPL) families, especially targeting SC/ST households.
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Aims to upskill workers, particularly school dropouts, enabling market-relevant employment opportunities.
- National Urban Livelihood Mission (NULM): Assists urban poor through self-help groups, skill development, and self-employment ventures.
In recent years, programs have incorporated innovative approaches. For example:
- Graduation Approach: Pioneered by the Bangladesh Rural Advancement Committee (BRAC), this involves social protection, financial inclusion, and livelihood promotion, often focusing on women-led households.
- State-Level Interventions: States like Jharkhand and Meghalaya have committed substantial funds—₹840 crore and ₹350 crore, respectively—to enhance alternative income sources for marginalized women.
How Does the Graduation Approach Work?
The graduation approach to poverty alleviation has shown promising results in India. This strategy relies on:
- Social Protection: Providing essentials like Aadhaar cards and ration cards for identity and access to services.
- Consumption Grants: Offering stipends of ₹6,000-10,000 to reduce the immediate need for migration.
- Livelihood Assets: Introducing skills-based income opportunities, such as rearing livestock or small-scale farming. A second asset, like tailoring or retail, follows after initial success.
- Nutritional Awareness: Field workers guide families on maintaining a balanced diet, incorporating varied food groups for overall well-being.
This method has been implemented in several states:
- Bihar’s JEEViKA Program: Reached 1.36 lakh ultra-poor households since 2018.
- Meghalaya Expansion: Extended from 4,000 families to 50,000 women, with a budget of ₹350 crore.
- Gujarat’s Aspirational Districts Initiative: Allocated ₹500 crore to uplift 50,000 Antyodaya Anna Yojana cardholders.
What Challenges Persist in Poverty Alleviation?
While initiatives have made progress, challenges remain:
- Scaling Issues: Expansion from small-scale success to nationwide programs risks losing effectiveness.
- Resource Allocation: Ensuring sufficient funding across states is critical. Despite notable commitments, larger coverage is essential to sustain momentum.
- Political and Administrative Hurdles: Inter-agency coordination and continuity of efforts, especially during governmental transitions, are frequent obstacles.
- Accurate Poverty Estimation: Disputes over poverty figures often distract from addressing underlying issues. A unified methodology is crucial for consistent tracking.
Can India Eradicate Poverty?
Eradicating poverty in India requires a multifaceted and sustained effort:
- Expanding graduation approaches to cover larger populations and ensuring long-term commitment from both central and state governments.
- Investing in Education and Skills: Enhancing vocational training and formal education for marginalized groups is critical.
- Promoting economic equity by addressing structural inequalities, fostering entrepreneurship, and improving access to financial services.
- Strengthening social safety nets, particularly for vulnerable populations affected by climatic and social factors.
As India progresses, empowering its citizens with opportunities and reducing inequalities can create a society where poverty is not merely alleviated but eradicated.