Poverty and Developmental Issues in India

Multi-dimensional perspectives on poverty, inequality, and key initiatives addressing development challenges in India.

Introduction

Poverty remains one of the most pressing challenges for India, despite remarkable economic growth over the last three decades. It affects human capabilities, social equity, and sustainable development. Understanding poverty requires a multi-dimensional lens, linking social, economic, and policy aspects.

1. Dimensions of Poverty

1.1 Income Poverty

Income poverty refers to insufficient monetary resources to meet basic needs. About 7.7% of India’s population lives below $3.20/day (2023). Rural families in Bihar and Jharkhand struggle to meet nutrition and healthcare expenses.

1.2 Consumption Poverty

Measured by calorie intake and essential consumption. NFHS-5 reports 35% of children under five face malnutrition, creating intergenerational poverty cycles.

1.3 Educational Poverty

Educational deprivation limits upward mobility. Low literacy, poor infrastructure, and gender gaps perpetuate poverty. Only 60% of girls complete secondary education in rural Uttar Pradesh.

1.4 Health Poverty

Lack of access to healthcare, sanitation, and nutrition worsens poverty. Urban slum populations during COVID-19 faced high mortality due to poor facilities.

1.5 Multidimensional Poverty

MPI (2022) measures deprivations in health, education, and living standards. Bihar, Uttar Pradesh, and Jharkhand show high MPI levels. POSHAN Abhiyaan addresses child nutrition.

1.6 Rural–Urban Poverty

Rural poverty links to agricultural distress; urban poverty clusters in informal settlements. Mumbai’s Dharavi slum illustrates urban poverty amid growth.

1.7 Vulnerability and Social Exclusion

Poverty worsens through caste, tribe, and gender discrimination. Tribal populations in Chhattisgarh face land alienation and low literacy despite schemes.

2. Poverty–Development Linkage

2.1 Poverty as a Development Barrier

Poverty restricts education, healthcare, and employment, reducing productivity. Farmers’ suicides in Vidarbha exemplify poverty-driven distress.

2.2 Development as a Poverty Reducer

Economic growth and job creation reduce poverty. IT and service sector growth in Bengaluru and Hyderabad lifted urban middle-class households out of poverty.

2.3 Inclusive Development

Inclusive programs like MGNREGA link development with poverty alleviation. In 2023 Assam floods, MGNREGA provided employment and asset reconstruction.

2.4 Poverty and Sustainable Development

Sustainable development reduces poverty without compromising environmental goals. Solar-powered irrigation in Rajasthan ensures energy access and livelihoods.

2.5 Human Development Perspective

Poverty reduction links to health, education, and empowerment. HDI 2023 highlights Kerala and Himachal Pradesh with low poverty and high human development.

3. Rangarajan Committee & Alleviation Strategies

3.1 Rangarajan Committee Definition

Defined poverty thresholds: ₹32/day rural, ₹47/day urban (2011–12). Framework aids accurate policy design.

3.2 Poverty Alleviation as Policy Priority

Policies include direct income support, employment guarantee, health insurance, and skill development. PM Garib Kalyan Yojana aided 2020 COVID-19 relief.

3.3 Employment-Centered Approaches

MGNREGA guarantees 100 days of rural employment. FY 2023–24, over 15 crore households benefited, reducing income poverty.

3.4 Food Security Initiatives

NFSA provides subsidized grains to over 80 crore people. PM Garib Kalyan Anna Yojana ensured free grain during pandemic lockdowns.

3.5 Housing and Urban Poverty Alleviation

PMAY built 1.4 crore houses for economically weaker sections by 2023, improving urban living conditions.

3.6 Health and Insurance

Ayushman Bharat – PMJAY covered 12 crore families in FY 2022–23, reducing catastrophic health expenditures.

3.7 Education and Skill Development

Samagra Shiksha and Skill India empower youth through education and employable skills. Digital literacy in rural Jharkhand enhances access to jobs.

3.8 Rural Credit and Financial Inclusion

PMJDY reached 45 crore beneficiaries, enabling cash transfers, savings, and microfinance for rural poverty reduction.

4. Concept of Inequality

4.1 Economic Inequality

India’s top 1% owns 42% of wealth (2023). Poverty persists at the bottom despite overall growth.

4.2 Social Inequality

Caste, gender, and regional disparities perpetuate social exclusion. Female labor participation remains below 25%.

4.3 Urban–Rural Inequality

Urban areas have better healthcare, education, and infrastructure. Delhi’s per capita income is ₹2.35 lakh vs Bihar’s ₹25,000.

4.4 Globalization and Inequality

Growth benefits urban tech hubs while marginalizing traditional crafts and small farmers.

4.5 Measures of Inequality

Gini, HDI, MPI track inequality. Kerala shows low disparity (Gini ~0.28); Maharashtra shows high inequality (Gini ~0.45).

5. Schemes and Initiatives

5.1 Employment and Livelihood

MGNREGA provides wage employment; DDU-GKY offers skill-based jobs to rural youth.

5.2 Food Security

NFSA provides subsidized grains; Mid-Day Meal Scheme supports child nutrition and school attendance.

5.3 Health and Nutrition

Ayushman Bharat – PMJAY reduces medical expenditure; POSHAN Abhiyaan targets malnutrition and maternal health.

5.4 Housing and Infrastructure

PMAY provides affordable housing; Swachh Bharat Mission improves sanitation and environment-linked living standards.

5.5 Financial Inclusion and Credit

PMJDY and Stand Up India provide banking access and loans for women and SC/ST entrepreneurs.

5.6 Education and Skill Development

Samagra Shiksha Abhiyan and Skill India Mission reduce educational and income poverty through literacy and employable skills.

5.7 Social Protection and Insurance

PM Garib Kalyan Yojana and NSAP provide direct transfers, pensions, and livelihood security to vulnerable groups.

5.8 State-Level Innovations

Kerala’s Kudumbashree empowers women via micro-enterprises; Rajasthan’s solar microgrids reduce energy poverty.

5.9 Recent COVID-19 Measures

Free rations under PM Garib Kalyan Anna Yojana benefited over 80 crore people. DBT of ₹500/month supported women during lockdown.

5.10 Technology-Driven Interventions

Digital India programs and eNAM improve governance, reduce leakages, and enhance market access for small farmers.