Hindu Editorial Analysis : 18-March-2024

Recently, B.V.R. Subrahmanyam from NITI Aayog stated that less than 5% of Indians live below the poverty line, based on the Household Consumption Expenditure Survey (HCES) conducted in 2022-23. This report suggests a significant decline in poverty levels in India, especially in rural areas.

Key Findings from the HCES

The HCES 2022-23 reveals the following statistics:

  • Rural Poverty: Decreased from 25.7% in 2011-12 to 7.2% in 2022-23.
  • Urban Poverty: Fell from 13.7% to 4.6% during the same period.

The survey is typically conducted every five years by the National Statistical Office (NSO), collecting data on household consumption. While the current estimate suggests a national poverty rate of about 4% to 5%, these figures might change once the postponed census is completed.

Other Estimates of Poverty in India

According to another report by NITI Aayog:

  • Multidimensional Poverty: Decreased from 29.17% in 2013-14 to 11.28% in 2022-23.
  • Approximately 24.82 crore people have moved out of multidimensional poverty since 2014, particularly in states like Uttar Pradesh, Bihar, and Madhya Pradesh.

The Multidimensional Poverty Index (MPI) 2023 highlights:

  • A reduction in the MPI value from 24.85% to 14.96% between 2015-16 and 2019-21.
  • About 135.5 million people exited poverty during this period.

Challenges of Poverty in India

Poverty in India encompasses various issues beyond just income:

  • Manifestations: Hunger, lack of education, social discrimination, and limited participation in decision-making.
  • Measurement Issues: Different definitions of poverty lead to varying estimates. For example, the World Bank uses a poverty line of $2.15 per day, estimating 11.9% of Indians live in poverty.
Causes of Poverty

Several factors contribute to poverty in India:

  • Limited Job Opportunities: Particularly in rural areas.
  • Social Inequality: Discrimination based on caste and gender.
  • Low Agricultural Productivity: Due to outdated farming methods and lack of capital.
  • Income Inequality: Benefits of economic growth often do not reach the poorest.
  • Lack of Access to Services: Limited access to health and education exacerbates poverty.
  • Caste System: Deep-rooted caste discrimination contributes significantly to rural poverty.
  • Social Customs: Cultural practices often lead to debt and further poverty.

Current Poverty Line Estimations

Different committees have proposed various poverty lines in India:

  • Tendulkar Committee (2009): Suggested ₹33 per day in urban areas and ₹27 in rural areas.
  • Rangarajan Committee (2014): Proposed ₹47 per day in urban areas and ₹30 in rural areas.
  • NITI Aayog’s MPI: Incorporates multiple dimensions, focusing on health, education, and living standards.

Suggestions for Poverty Reduction

To effectively address poverty, the following measures are crucial:

  • Interconnected Approaches: Tackle income, education, and opportunity inequalities together.
  • Job Creation: Focus on generating employment as a primary means to reduce poverty.
  • Government Support: Free education and health services for marginalized communities are essential.

Government Initiatives

The Indian government has launched several initiatives to combat poverty, including:

  • MGNREGA: Provides wage employment and promotes natural resource management.
  • Health Programs: Such as Poshan Abhiyan and Anaemia Mukt Bharat.
  • Sanitation Initiatives: Swachh Bharat Mission and Jal Jeevan Mission.
  • Fuel Access: Pradhan Mantri Ujjwala Yojana provides subsidized cooking fuel to rural households.

Why In News

NITI Aayog’s B.V.R. Subrahmanyam recently claimed that less than 5% of Indians now live below the poverty line, a significant drop reflecting positive economic trends. He made this assertion based on the findings of the Household Consumption Expenditure Survey (HCES), 2022-23, which provides a comprehensive overview of household consumption patterns and poverty levels across the country.

MCQs about Understanding Poverty in India

  1. What percentage of Indians was reported to live below the poverty line according to NITI Aayog’s B.V.R. Subrahmanyam?
    A. 10%
    B. 5%
    C. 4%
    D. 3%
    Correct Answer: B. 5%
    Explanation: B.V.R. Subrahmanyam stated that less than 5% of Indians now live below the poverty line, based on findings from the Household Consumption Expenditure Survey (HCES) 2022-23.
  2. According to the Household Consumption Expenditure Survey (HCES), what was the rural poverty rate in India in 2022-23?
    A. 25.7%
    B. 7.2%
    C. 13.7%
    D. 11.28%
    Correct Answer: B. 7.2%
    Explanation: The HCES reported that rural poverty had declined to 7.2% in 2022-23, down from 25.7% in 2011-12, indicating a significant improvement in rural economic conditions.
  3. Which of the following committees suggested a poverty line of ₹47 per day in urban areas?
    A. Tendulkar Committee
    B. Rangarajan Committee
    C. NITI Aayog
    D. World Bank
    Correct Answer: B. Rangarajan Committee
    Explanation: The Rangarajan Committee, established to assess poverty, set the poverty line at ₹47 per day for urban areas, while the Tendulkar Committee proposed a lower figure.
  4. What does the Multidimensional Poverty Index (MPI) measure?
    A. Only income levels
    B. Overlapping deprivations in health, education, and living standards
    C. Employment rates
    D. Government spending
    Correct Answer: B. Overlapping deprivations in health, education, and living standards
    Explanation: The MPI measures poverty by assessing various overlapping deprivations, including health, education, and living standards, rather than just focusing on income alone.

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