Subject: Governance

India's poverty measurement has evolved from a uni-dimensional approach based on consumption expenditure to a multi-dimensional poverty index (MPI) that captures deprivation across health, education, and living standards. The recent estimates from various sources indicate a significant decline in poverty levels, though the pace and extent of reduction vary across rural and urban areas.

Poverty Reduction Trends

Rural Poverty

• According to HCES 2022-23, rural poverty has witnessed a substantial decline from 25.7% in 2011-12 to 7.2% in 2022-23, indicating successful implementation of rural development schemes like MGNREGA and PM-KISAN.
• NITI Aayog's MPI Report 2023 shows rural poverty decreased from 32.59% to 19.28% between 2015-16 and 2019-21, demonstrating the impact of targeted interventions.
• Programs like Pradhan Mantri Awas Yojana-Gramin and National Rural Livelihood Mission have contributed to improved living standards in rural areas.

Urban Poverty

• Urban poverty showed a significant reduction from 13.7% (2011-12) to 4.6% (2022-23) as per HCES data.
• The MPI estimates indicate urban poverty declined from 8.65% to 5.27% between 2015-16 and 2019-21.
• Initiatives like PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) and Deendayal Antyodaya Yojana-NULM have supported urban poor livelihoods.

Critical Analysis

Strengths

• Multidimensional approach: The new MPI captures a broader spectrum of deprivation beyond income.
• Consistent decline: Different methodologies confirm the downward trend in poverty.
• According to NITI Aayog, 24.82 crore people escaped multidimensional poverty between 2013-14 and 2022-23.

Challenges

• Regional disparities in poverty reduction persist.
• Impact of COVID-19 and economic slowdown on poverty levels needs comprehensive assessment.
• Data gaps due to delayed Census 2021 affect precise poverty estimation.

The convergence of various poverty estimates pointing towards reduction validates India's progress in poverty alleviation. However, the challenge lies in sustaining this momentum through targeted interventions like PM Garib Kalyan Anna Yojana and addressing regional disparities through the Aspirational Districts Programme.