IISPPR

Category: No Poverty

No Poverty
VASUNDHRA B

Changing scenario of poverty centric policies in India

By Vasundhra B A Review of India’s Policy Initiatives and Research Gaps in Achieving Sustainable Development Goal 1 Sustainable Development Goal 1 (SDG 1) aims to “end poverty in all its forms everywhere” by 2030. The objective of SDG 1 is to eradicate extreme poverty, reduce poverty by at least half, implement social protection systems, ensure equal rights to economic resources, and build resilience to environmental, economic, and social disasters. In view of that, India has taken various policy initiatives to address SDG 1. The National Institution for Transforming India (NITI Aayog) is monitoring the progress of SDG 1 in the country. Some of the major initiatives include the Rashtriya Swasthya Bima Yojana (RSBY), a health insurance scheme for the poor. The government has also focused on slum rehabilitation and crop diversification for poverty alleviation. Notable case studies include the Pradhan Mantri Jan Dhan Yojana (PMJDY), which has significantly increased financial inclusion by opening millions of bank accounts for the unbanked, and the Direct Benefit Transfer (DBT) scheme, which aims to reduce leakages in welfare schemes by transferring subsidies directly to the beneficiaries’ bank accounts. However, challenges such as lack of awareness, poor implementation, delayed wage payments, and limited access to healthcare have hindered the success of these initiatives. The review highlights the need for better monitoring, improving infrastructure, market linkages, and financial support for sustainable livelihood programs. Additionally, it emphasizes the importance of research on income diversification strategies, improving the quality of veterinary services, and addressing discomfort and distress during slum rehabilitation.  Historical Context of Poverty Alleviation in India  Following its 1947 declaration of independence, India encountered formidable economic obstacles. The economy of the nation was undeveloped, with most of the advancements occurring in the robust cities. For 83% of those living in rural areas, agriculture was their primary source of income, although productivity was low (Thakur et al., 2021). Growing populations combined with the shortage of alternative jobs led to rural residents facing long-term unemployment and low incomes. Since 80% of India’s deprived lived in rural areas, the government realised the need to tackle this issue, thus in 1952, India introduced Community Development as its first initiative to reduce poverty (Thakur et al., 2021). This initiative marked the beginning of systematic efforts to uplift the rural poor. As a result, more focused job initiatives were introduced in the 1980s. In an effort to facilitate more jobs for the underemployed and unemployed in rural areas, the National Rural Employment Programme (NREP) was launched in 1980. It aimed to produce 300–400 million man-days of work in one year’s period of time while fostering the development of useful communal resources. The Rural Landless Employment Guarantee Programme (RLEGP) was also introduced in 1983. Its main objectives were to give every landless rural household member 100 days of work and to build durable assets that would support rural infrastructure. In 1989, these initiatives were combined to become the Jawahar Rozgar Yojana (JRY). JRY prioritised freed bonded labourers, Scheduled Castes and Scheduled Tribes, and the population below the poverty line. The program established a target of 30% employment for women and prioritised unskilled labour over mechanised jobs to expand employment prospects. The program involved Panchayat Raj Institutions in the construction of assets based on rural needs and functioned primarily during lean crop seasons.  Later, a part of JRY was combined with the Employment Assurance Scheme (EAS), which was implemented in 1,775 backward blocks, in 1993–1994. For 100 days of unskilled labour during low agricultural seasons, the EAS paid minimum wage. However, many of these programs prioritised wage employment as opposed to asset building and thus led to poorly planned, short-term development. The first program was the government’s answer to increasing urban poverty at the time that was partly caused by rural-urban migration in 1985. This meant a significant shift in strategies for poverty reduction because it recognized that being poor is not only confined to rural areas. As per Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005, every rural household with adult members volunteering for unskilled manual work has the opportunity to be guaranteed 100 wage days within a financial year. It marked a substantial change in approach from earlier welfare-oriented programmes that focused on employment rights instead of welfare needs. In recent years India has adopted a more holistic set of policies towards reducing poverty that is consistent with Sustainable Development Goals (SDGs) as enshrined by the UN. Under this premise, the current Indian government’s policy also features targeted anti-poverty schemes implemented with a view to achieving full employment; which are assessed through national SDGs target indices and sustaining robust GDP growth rates. Employment, social security and meeting basic needs constitute three main kinds of existing government action today. The National Food Security Mission, Ayushman Bharat, Deendayal Upadhyay Grameen Kaushalya Yojana, Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY), National Rural Livelihood Mission, National Social Assistance Programmes (NSAP), and Pradhan Mantri Awas Yojana (PMAY) are some of the notable initiatives. In brief, the chapter discusses India’s poverty alleviation efforts since 1947. It brings focus on the transition from projects with a rural focus to more all-encompassing approaches, such as urban poverty initiatives. The Community Development program of 1952, the many employment schemes of the 1980s, and the MGNREGA of 2005 are considered significant milestones. Current strategies address employment, social security, and basic services through a number of programs that are in line with the UN Sustainable Development Goals.  Poverty alleviation programmes from 1950s to 1970s  India’s post-independence era witnessed the introduction of the Community Development Programme in 1952, marking the start of the country’s serious actions to reduce poverty. At the time, 80% of India’s impoverished lived in rural areas, so this project represented the first organised attempt to combat poverty (Thakur et al., 2021). Accepting the salient assumptions of the regulated system, during the first fifteen years of its premise, the economy appeared optimistic, as highlighted by an average absolute GDP per annum growth rate of 4.1%. While this did

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