India’s Poverty Plunge: A Tale of Progress and Freedom

India has achieved a historic milestone in its poverty war, with the country's overall poverty rate dipped below 5% in 2024 and extreme poverty effectively eradicated. This historic achievement is a culmination of the consistent economic growth, targeted welfare measures, and greater access to health and education. According to a State Bank of India (SBI) report, rural poverty fell to 4.86%, and urban poverty fell to 4.09%, a dramatic difference from FY12 levels when rural and urban poverty stood at 25.7% and 13.7%, respectively.

Extreme Poverty Nearly Wiped Out

A study by economists Surjit Bhalla and Karan Bhasin notes that extreme poverty, as per World Bank's $1.9 PPP line, has declined to under 1% in 2023-24. This is also accompanied by declining income inequality with the Gini coefficient decreasing from 37.5 in 2011-12 to 29.1 in 2023-24. These figures are not only a decline in poverty but a reduction in the rich-poor gap too.

The eradicating of abject poverty is a testament to the strength of India and its faith in inclusive growth. It also indicates the success of policies aimed at the welfare of the marginalized sections of society with the attainment of economic growth. The report further informs that India's success in curbing poverty has been quicker than in most other developing nations, and it has set an example for the rest of the world in the poverty reduction programs.

Several government schemes have played an important role in transforming India's poverty landscape:

1.⁠ ⁠MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): The flag-bearer programme has provided guaranteed employment to millions of rural families, injecting income security and mitigating rural distress.

2.⁠ ⁠Ayushman Bharat: The largest globally government-backed health program has immensely increased access to healthcare among low-income households, preventing catastrophic expenditure on health that is prone to thrusting households into poverty.

3.⁠ ⁠PM-Kisan Scheme: Direct income support to farmers has raised agricultural productivity and rural livelihoods.

4.⁠ ⁠Digital Inclusion: The extensive use of digital platforms for welfare delivery has rendered it transparent and efficient to reach beneficiaries.

5.⁠ ⁠Skill Development Programs: Initiatives like Skill India have made youth with employable skills capable of securing better job opportunities.

These programs have not only brought millions out of poverty but have also acted as a safety net to vulnerable groups in periods of economic downturn or such crises as the COVID-19 pandemic.

Economic Growth as a Catalyst

India's consistent economic growth during the past decade has been one of the most powerful drivers of poverty reduction. With GDP growth over 7% on average annually, jobs have been created by millions in sectors such as manufacturing, services, and agriculture. Household income growth has manifested itself in better living standards and increased spending on education and healthcare.

The growth story has been underpinned by structural changes such as the rollout of GST, improving ease of doing business, and infrastructure development under schemes such as Bharatmala and Sagarmala. The changes have encouraged investment and productivity while creating opportunities for entrepreneurs and small businesses.

One of the most striking aspects of India's poverty reduction is its all-pervasive nature across communities and segments. For instance, Muslim rural poverty reduced from 31.7% in FY12 to a mere 2.4% in FY24, and Hindu rural poverty reduced from 30.9% to 4%. Urban poverty too followed the same pattern, illustrating how certain policies have affected all sections of society.

Women too have been the biggest gainers of this change. Initiatives like Beti Bachao Beti Padhao and Ujjwala Yojana have empowered women by increasing education and clean energy choices. Greater female employment has also contributed to family incomes.

Challenges Ahead

India's progress is very impressive, but challenges remain in sustaining this rate:

1. Urban Poverty: Although improved, urban India still experiences housing shortages and informal employment that need redressing.

2.⁠ ⁠Disparities in Regions: Bihar and Uttar Pradesh remain behind other states in development metrics.

3.⁠ ⁠Climate Change: Environmental problems such as droughts and floods can disrupt livelihoods, particularly in agriculture-oriented regions.

4.⁠ ⁠Quality Education: Ensuring quality education to everyone remains the central solution to eliminating intergenerational poverty.

Addressing these issues requires sustained focus on inclusive policies, human capital investment, and locally relevant innovative solutions.

Global Recognition

India's success story has been known across the world as a model for other developing nations to emulate while trying to lift people out of poverty. India's approach in balancing rapid economic growth with social welfare measures has been applauded by the World Bank and UNDP.

A Vision for the Future

As India becomes more developed, its vision of development must remain focused on ensuring economic growth with the new problems such as urbanization and climate change. Improvement in social protection, entrepreneurship stimulation, and spending on technology solutions will be pivotal to long-term prosperity.

India's shift from mass poverty to virtual elimination is not a tale of numbers—it is one of perseverance, creativity, and collective striving toward an equitable society in which all citizens have the opportunity to thrive.

Source: DD News, Organiser, Indian Express