Background
Poverty is a multidimensional challenge involving inadequate income, education, healthcare, nutrition, housing and access to basic services.
India has adopted several poverty alleviation initiatives, including MGNREGA, PM Awas Yojana, NFSA, PM Jan Dhan Yojana and Ayushman Bharat.
The World Bank measures poverty using international poverty lines as well as multidimensional indicators to assess improvements in living standards.
Features
Decline in monetary poverty
Extreme poverty ($3/day) declined from 27.1% in 2011 to 2.6% in 2023.
Poverty at the lower-middle-income poverty line ($4.2/day) declined from 57.7% to 16.1%.
Approximately 496 million people moved out of poverty.
Reduction in multidimensional poverty
OPHI's Multidimensional Poverty Index declined from 53.8% (2005–06) to 16.4% (2019–21).
World Bank's MPI stood at 15.5% in 2022–23.
Employment generation
Employment increased by approximately 134 million between 2017 and 2023.
Increased participation of rural women in paid employment contributed significantly.
Persistent inequalities
The top 10% of workers earned nearly 13 times more than the bottom 10%.
Uttar Pradesh to West Bengal belt accounts for around 57% of India's poor population.
Youth unemployment increased from 14.6% to 15.9%.
Challenges
Income inequality: Unequal distribution of income and economic opportunities remains a concern.
Unemployment: Rising youth unemployment despite overall employment growth.
Low-quality employment: Employment growth is concentrated in relatively low-productivity activities, with stagnant real earnings.
Regional disparity: Poverty remains concentrated in certain States, particularly in eastern and northern India.
Gender inequality: Women's participation in paid work has improved, but quality, wages and job security remain concerns.
Human development: Malnutrition, poor healthcare and learning outcomes continue to affect vulnerable communities.
Way Forward
Quality employment: Promote labour-intensive manufacturing, MSMEs and formal-sector employment.
Skill development: Strengthen vocational education, digital literacy and industry-oriented training.
Women empowerment: Improve childcare facilities, workplace safety, equal wages and women's access to formal employment.
Regional development: Focus on aspirational districts, eastern India and historically backward regions.
Human capital: Strengthen public healthcare, nutrition, school education and sanitation.
Inclusive growth: Improve the targeting and delivery of DBT, food security and social protection schemes.
Evidence-based policymaking: Use reliable poverty data and
multidimensional indicators to identify vulnerable households.
Conclusion
The process of alleviation of poverty in India has been an important success story. But in its next phase, it is necessary to move from mere poverty alleviation to the eradication of poverty through productive employment, equal income distribution, and human development. The ultimate goal should be "Sabka Saath, Sabka Vikas."
