Subject: Indian Society

Despite significant poverty reduction efforts, India continues to grapple with persistent poverty due to various structural and implementation challenges. The interplay of social, economic, and institutional factors demands a comprehensive analysis of why poverty persists despite numerous government interventions.

Reasons for Persistent Poverty

A. Structural and Social Barriers

• Social Exclusion: Marginalized communities face discrimination in accessing resources and opportunities, perpetuating intergenerational poverty.
• Gender Inequality: Women's limited access to education, employment, and resources hampers household economic mobility.
• Rural-Urban Divide: According to SBI report (2024), rural poverty (4.86%) remains higher than urban poverty (4.09%), indicating geographical disparities.

B. Economic Factors

• Declining Social Sector Spending: Government expenditure on social sector reduced from 26% to 17% in 2024-25, the lowest in a decade, affecting poverty alleviation programs.
• Informal Economy: Large informal sector workforce lacks social security and stable income, making them vulnerable to economic shocks.
• Limited Access to Credit: Poor financial inclusion restricts entrepreneurship and economic opportunities for the underprivileged.

C. Implementation Challenges

• Program Design Issues: Despite schemes like PMAY-G showing positive impacts, gaps in housing demand assessment persist, as noted by NIRDPR study.
• Leakages and Corruption: Inefficient delivery systems and corruption reduce the effectiveness of welfare schemes.
• Poor Targeting: Benefits often don't reach the most deserving beneficiaries due to identification and distribution challenges.

D. Institutional Weaknesses

• Limited Coordination: Poor inter-departmental coordination leads to duplication of efforts and resource wastage.
• Monitoring Challenges: Inadequate monitoring mechanisms affect program implementation and outcome assessment.
• Capacity Constraints: Limited institutional capacity at grassroots level hampers effective program delivery.

The path forward requires a multi-pronged approach focusing on strengthening institutional mechanisms, enhancing social sector spending, and ensuring better targeting through initiatives like Direct Benefit Transfer (DBT) and JAM (Jan Dhan-Aadhaar-Mobile) Trinity. The success of NITI Aayog's Multidimensional Poverty Index in tracking progress shows promise for evidence-based policymaking in poverty eradication.