Today, 77 years after India won freedom, poverty remains a threat
Suresh Chandra Sarangi
There has been much debate regarding poverty eradication in India. Some call the poverty threshold outdated and do not represent a clear picture as the metrology chosen is flawed. Gandhiji, the Father of the Nation had envisaged Gram Swaraj and the complete eradication of poverty. That is why his idea was reflected in the Directive Principles of State policy. But today, 77 years after India won freedom, poverty remains a threat. Azim Premzi, the founder of Wipro, after attending the party in the tinsel town, in the winter, came outside the glamorous world and was proceeding to his home, when he came across, not far away from the road, and discovered that people were sleeping on the road with half blanket.
The philanthropist he was, it touched his heart and this reminded him of the level of poverty, which was a bottomless pit. Much has been done by successive governments, but much is desired to be done to provide, Roti, Kapda, and Makan. Prime Minister Modi’s program of providing rice to 80 crore people, since COVID 19, is perhaps the largest welfare measure of the world, but critics see it differently, stating that the 80 crore people are so poor that they do not get 2 square meals a day for which, they are being fed and that speaks, poverty is not skin deep, but well ingrained in the body politic of India.
Extreme Poverty
What is more of a burden on the poor is the runaway inflation on the provisions of the poor. The high malnutrition, infant mortality, subdued growth of children, early dropouts, poor sanitation, education, and non-availability of clean potable drinking water, with the very bad state of the medical in the rural hinterland, is a pointer to the fact that poverty and life are inseparable in India. The point remains that extreme poverty has been eliminated, but poverty still exists for which there is a thrust on multidimensional poverty now. But the government statistician projects a happy picture stating that in India, the battle against extreme poverty is nearing an end.
Economists Surjit Bhalla and Karan Bhaina, after analyzing the 2022-23 consumer survey, opined that India has nearly eradicated extreme poverty. Again it has been said in an analysis that India had triumphed over extreme poverty, with only 2.2 percent of its population living below the World Bank’s poverty line index. The fact that poverty has been packaged well and takes center stage before the state or Central election, with a slew of measures, has been conveniently forgotten thereafter. For years, it appeared that poverty was an issue only when India went to the hustings.
The Tendulkar committee has defined poverty. In 2005 it recommended a poverty line basket across rural and urban India and finalized that in rural, Rs 444.68 per capita and in urban Rs 578.80 per capita per month be the distinguishing line between poverty and out-of-poverty syndrome. In 2011-12, the committee’s methodology was set to provide an estimate of the poverty line, being Rs 816 per capita per month and Rs 1000 per capita per month. The Rangarajan committee had estimated the poverty line to be Rs 972 per capita per month in rural areas and Rs 1407 per capita per month in urban areas.
Mapping Poverty
Whatever the methodology, mapping poverty is a complicated job. Poverty cannot be wished away, Inflation has to be controlled. The bottom half of the pyramid faces debilitating poverty, accentuated by grinding inflation. COVID-19 played the spoilsport, the jobs were lost, and the migrant laborers were at serious job loss. That was a death blow to the earnings capacity of Indians as everything was brought to a standstill. India has to put its house in order by spurring investment, enhancing skill-based education, creating more jobs, and implementing poverty reduction schemes in letter and spirit, without compromise. Creating better healthcare opportunities will enhance economic growth and then only progress under the eradication of poverty can be achieved.
Almost 10 years ago, 12 out of every hundred people in India lived on 1 US dollar. 90pp, as per purchasing power of parity. And 10 years after that number has dropped to 2 out of hundred. This is a reminder that millions have risen above the poverty line. It speaks that there is a broader improvement. The World Bank’s definition of extreme poverty line is 1.90 dollars per day, and India appears to be in a better situation. The first household consumption in over a decade speaks some interesting facts like India having scored better than the US dollar 1.90 for rural and the US dollar 3.20 per day.
The poverty rate is plummeting as per the survey, as high poverty has come down from 53.6% to 16.4% and extreme poverty from 12.2% to 2.2%. Even some states have performed miracles, like Bihar, Uttar Pradesh, Odisha, and Karnataka. The National Sample Survey Organization’s study is an indicator. The NSSO’s fact sheet is thus an eye-opener concerning many facets of poverty and its progress. However, the NSSO’s findings say that the regional variances are sometimes disturbing.
As per the Government’s definition, poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. An estimate projects that 129 million citizens remain in extreme poverty.
The government of India has two ways to go about poverty: promotion of economic growth and targeted poverty programs. Poverty is either measured by the level of expenditure and hence consumption or the level of income of a family as a unit. The result of sharp differences in earnings is the main reason for the rise of inequality and poverty alone, mostly without gainful employment, jobs, or income. The Niti Aayog thinks that creating jobs would straighten poverty. Upliftment of agriculture, horticulture, floriculture, and other allied activities under agriculture would make the source of income broader.
Agriculture & Handicrafts
Multi-cropping would help farmers to earn more. This will necessitate road construction for enhanced connectivity in rural areas and transportation of the produce would give a new lease of life to the educated unemployed youth. What will make it more progressive is by providing incentives and subsidies which makes it a better proposition for the frustrated youth to take up a new venture having twin purposes such as eradication of poverty and creation of employment. For a more diverse area to make a frontal attack on poverty, is reinvigorating, the cottage industry, and handicrafts have tremendous export value and better returns.
Recently, some changes have been made in the contours of MGNREGA. For 2024-2025, the wages under the scheme have been increased to Rs 284, which is based on the consumer price index agricultural laborers. Rs 8600 crores have been allocated under the scheme for the 2024-25 financial year and the number of mandamus has been nuanced. What the government aims at is a multidimensional attack on poverty, in tune with sustainable growth.
Prime Minister Nehru once said poverty anywhere is a threat to prosperity everywhere. Poverty creates misery. Inclusive growth alone shall provide succor to our growth story and construct a strong edifice to our foundation of development. People are fed up with government narratives and statistics are well camouflaged to hoodwink the people.
The Manduk Krishna Sarpa story of Panchtantra, ‘bubhukhit kim nkarote papam’ must remind us to think of inclusive growth or Sabka Saath Sabka Bikash. The trickle-down theory with accelerating growth is all fine, but it has to be broad-based, harping on the concept of equity and justice to cruise ahead into the ‘Amritkal’, is a celebration of 100 years of our freedom. The Prime Minister’s concept of not only a developed India, but the per capita income to grow like that of the developed western world, shall drive each one of us in pursuit of a tangible dream.
(The writer is a former General Manager of Bank of India and currently a visiting professor at KIIT School of Management. Views expressed are personal.)
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