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Poverty Reduction in India: A Multi-Dimensional Analysis
Context:
Recent Findings of NITI Aayog’s Discussion Paper ‘Multidimensional Poverty in India since 2005-06’ have highlighted the decline in poverty in India from 2011-12 to 2023-24.
Key Insights from the Report
- Overall Decline in Poverty (2011-12 to 2023-24)
- Rural poverty rate declined from 30.4% to 3.9%.
Measurement of Poverty
- The poverty line used is based on the Rangarajan Committee’s 2014 recommendation.
- The poverty line calculation includes:
- Modified Mixed Recall Period (MMRP) for accurate household expenditure data.
- Caloric intake norms set by the Indian Council of Medical Research (ICMR).
- Higher weightage to non-food components in urban areas (education, healthcare, rent, etc.).
- The Household Consumption Expenditure Survey (HCES) of 2011-12 and 2023-24 was used for analysis.
- Urban poverty rate declined from 26.4% to 3.9%.
2)Poverty Reduction Across Religious Groups
- Significant decline among Hindus and Muslims, the two largest religious groups.
- Rural Areas:
- Muslim poverty rate declined from 31.7% to 2.4%.
- Hindu poverty rate declined from 30.9% to 4%.
- Muslim-Hindu poverty gap reversed to -1.6 percentage points.
- Urban Areas:
- Muslim poverty rate declined from 39.4% to 5.7%.
- Hindu poverty rate declined from 24.4% to 3.7%.
- Gap reduced from 15 percentage points to 2 percentage points.
- Faster decline in poverty among Muslims, indicating a reduction in disparities.
3) Multidimensional Poverty Index (MPI) Trends (2013-14 to 2022-23)
- 24.82 crore people escaped multidimensional poverty in the last nine years.
- MPI headcount ratio declined from 29.17% to 11.28%.
- Largest decline in poor population observed in:
- Uttar Pradesh: 5.94 crore people escaped poverty.
- Bihar: 3.77 crore people.
- Madhya Pradesh: 2.30 crore people.
- Rajasthan: 1.87 crore people.
- Faster poverty reduction in poorer states, reducing inter-state disparities.
4) India’s Progress on Global Poverty Targets
- Virtually eliminated extreme poverty (below $1.9 per day, PPP-adjusted) with only 0.9% of population remaining below this threshold.
- Overall poverty (below $3.2 per day, PPP-adjusted) declined to 15.1%.
- India is likely to achieve SDG Target 1.2 (halving multidimensional poverty) before 2030.
Government Initiatives Driving Poverty Reduction
- Food Security & Nutrition
- National Food Security Act (NFSA):Covers 81.35 crore beneficiaries.
- Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): Free food grains for five more years.
- Poshan Abhiyan & Anemia Mukt Bharat: Improved nutrition and healthcare access.
- Social Welfare & Financial Inclusion
- Pradhan Mantri Jan Dhan Yojana: Massive financial inclusion drive.
- PM Awas Yojana: Affordable housing for the underprivileged.
- Ujjwala Yojana: LPG connections for clean cooking fuel.
- Infrastructure & Basic Services
- Swachh Bharat Mission: Sanitation improvements.
- Jal Jeevan Mission: Improved access to drinking water.
- Saubhagya Yojana: Expanded electricity coverage.
