The Article examines India’s progress against poverty, pointing out that a new income level set by the World Bank shows both achievements and obstacles yet to be overcome.
Many youngsters are unemployed today due to the current economic conditions. The World Bank’s decision to update the global poverty line from $1.90 to $3 a day takes current changes in cost and economy into account. As per data of financial year 2022-23 the current poverty rate in India is 5.3 percent with a decrease in about twenty seven percent has shown the growth in the poverty reduction measures. Such a fall demonstrates the positive effects of constant economic growth, government aid, and initiatives that encourage more people to save money. The introduction of direct benefit transfers, rural work programs, and banking through technology has helped a lot of low-income families live better. Yet, some issues remain unsolved, because regional issues and increases in prices continue to hurt poor people. The piece explains the cause of poverty decline in india, how India is doing compared to other nations, and sets out some ways to fight poverty. While India’s progress is encouraging, it is still important to carry on with plans to help the country grow and get over of poverty.
Poverty Line and Its Changes
To measure Poverty in a country this line is used and based on it the policies are been made for the different sections of the society. With the passage of time, what inflation means has changed due to changes in the global economy, cost of living, and people’s needs.
- Poverty Line: The poverty line is used to check if someone or a family has enough to buy foods, shelter, and health care they need. Usually, global organizations such as the World Bank have chosen this level based on what people need to survive.
- The Role of World Bank in Assessing Worldwide Poverty: Sometimes, the World Bank changes the international poverty line based on inflation and the way people buy things locally. Before $1.90 a day was considered a poverty level, $3 would be a new mark for poverty.
- The cause behind the Revision: Since living expenses are increasing and important services are necessary, a government policy of $3 per day was used. Sometimes, relying on $1.90 a day as a sign of poverty ignored things like healthcare and education.
- Poverty in different places: Since countries have different economies and degrees of welfare, poverty is described differently in each place. Poverty lines in developing countries are worked out differently since these nations have social and economic problems that are not common everywhere.
- Higher poverty threshold: this change in the poverty limits changes the peoples’ perspective towards poverty. To prevent more individuals from experiencing financial difficulties, political leaders are asked to review economic programs and ways to offer work.
When forming anti-poverty strategies and supporting global and fair development, one needs to know the history of how poverty is viewed. It helps social workers to craft useful policies to determine how poverty has been measured through the decades.
Changes in India’s Efforts to Fight Poverty
Over the last ten years, India has made great headway in eliminating poverty. Efforts like Strong economic growth, more social support schemes, and making financial services easily available to all have helped India in cutting down poverty.
- Decline in poverty: As per data of financial year 2022-23 the current poverty rate in India is 5.3 percent with a decrease in about twenty seven percent has shown the growth in the poverty reduction measures. Raising wages, better work prospects, and programs from the government all led to the significant decline.
- Policies: Poverty reduction has become possible in many cases, for example through the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the Pradhan Mantri Jan Dhan Yojana (PMJDY). They have given both rural employment and more financial opportunities to millions.
- Growth in the economy: Due to the growth of India’s GDP and its fast-growing cities, there are fewer people living in poverty now. As industries advance, there are more jobs offered in cities, which has helped increase people’s income and reduced their need for farming or manual work.
- Direct Benefit Transfer: Vulnerable sections of society have access to important services because of government transfers in food, housing, and healthcare. By using Aadhaar to transfer assistance, the government has reduced loss of funds and helps the right beneficiaries.
- Difficulties Still Exist: Even though there are fewer poverty rates, there are still big differences from one district to another. Rural communities and groups that are underprivileged still experience economic difficulties. Inflation, having fewer jobs than desired, and exposure to climate risks are constant dangers that should be addressed by regular policy.
It shows that both India’s economy and policies are strong enough to curb poverty. Nevertheless, making sure everyone is included and growth is fair helps move progress forward in the future.
Initiatives that help to reduce poverty
The huge decrease of extreme poverty in India can be traced to growth in the economy, help from social welfare, and the advancement of technology. All of this has made it possible for many people to enjoy improved living standards and more prospects.
- Employment: The continuous rise in GDP has played a key role in creating more jobs in many different industries. Development in industry, services, and infrastructure has guaranteed jobs and increased wages for people to lift them above poverty.
- Social welfare: Launches such as MGNREGA and PMGKY by the government have significantly decreased poverty in the country. Because of these schemes, low-income households don’t lose their jobs, receive food aid, and get direct help from the government.
- Rural Development and Changes in Agriculture: New ways in farming, better water systems, and paid prices for farmers’ products have all helped increase earnings in rural areas. Because of more self-help groups and microfinance, small farmers and entrepreneurs feel stronger and less reliant on subsistence agriculture.
- Financial Inclusion and new technologies: Lots of people from low-income communities have benefited from the Jan Dhan Yojana and Aadhaar-related subsidies, making their finances more secure. Easy access to government financial help and better chances to participate in the economy has come with digital payment systems.
- Learning and Skills Growth: Investments in schools and worker training have increased any chances to find work. Through skill development programs, for example Pradhan Mantri Kaushal Vikas Yojana (PMKVY), individuals are becoming skilled workers, which help them get a job and earn income.
Whereas there are positive changes, people in the India still worry about inflation, regional differences, and the difficulty in obtaining steady employment. Efforts in policy-making and thoughtful economic strategies are needed to keep poverty away in the long term and help people seek sustainable economic growth.
Challenges
Although India has improved greatly in reducing poverty, many obstacles in society and the economy block further changes. Tackling these matters is vital for economic growth that benefits every part of society.
- Region-to-region Inequality: Although there are improvements at the national level, poverty is still mostly found in particular areas. Many rural areas, tribal populations, and states with fewer resources have troubles with poor infrastructure, few job options, and lower use of important services.
- Rising prices and high inflation: With higher inflation and increasing basic goods prices, it becomes difficult for people with low income to buy goods they need. Continued growth in food, healthcare, and housing prices is making it hard for poor people to keep controlling their finances.
- Informal Employment: The labor market has changed, yet a great number of employees are still employed in low-paying and informal jobs. A lot of people at work may be laid-off at any moment, miss out on social security, and have unpredictable pay, which puts them in danger of financial difficulties.
- Impact of Economic and Environmental Changes: People living in poverty suffer more from economic slumps, epidemics, and problems due to climate change. Loss of income and reduced job opportunities for the less fortunate are the effects of both unexpected calamities and global crises in the financial market.
- Education and Healthcare: Not having access to proper education and medical services allows poverty to continue from one generation to another. As low-income families don’t receive a good education, they usually cannot find jobs that help them achieve financial stability.
- Policy design and rules: Several government efforts to fight poverty are blocked by problems with their implementation and the government system. A problem such as corruption and mismanagement and lack of awareness entails to stop welfare schemes from helping many people.
Reducing poverty takes continuous hard work, sound policies, and plans that match specific problems. Handling these concerns is essential for the stability of society and prolonged growth in the economy.
Global context
Every nation struggling with poverty uses its own techniques to help reduce financial challenges. Although India’s efforts to reduce extreme poverty are in line with other developing nations, it still encounters problems that are specific to its situation.
- How India Stands alongside Other Nations: Because of social welfare, economic development, and better inclusion of people in finance, India’s extreme poverty has decreased a lot. China and Indonesia are also among the countries that have gained from industrialization and strategies aimed at reducing poverty.
- Lessons Taken from Effective Strategies to Fight Poverty: Opening up access to social protection, universal healthcare, and small business help through microfinance has improved the chances of economic progress for people in Brazil and Vietnam. India has the chance to adopt approaches from other nations to make its efforts to reduce poverty more successful.
- Issues in addressing Global Poverty: While progress has been made, people across the world are still strongly affected by poverty today. There is still inequality in income, many unemployed people, and limited essential services in African and South Asian countries, proving that the world requires united effort.
Considering the world conditions helps India to plan its actions better, work for everyone’s benefit, and build a reliable economy to combat poverty.
Looking Forward and Proposed Policies
India has done well in reducing poverty, yet its progress can be maintained only if new strategies are put in place over a long period. Stronger economic plans, improved social welfare, and more innovative ideas will play an important role in affecting the country’s future.
- Providing more work opportunities: Work on learning new skills and encouraging new growth in industries should play a major role in creating jobs. Efforts in helping entrepreneurs and small businesses will provide steady money and limit the use of informal jobs.
- Boosting programs: Plans to help poor communities should be modified so they are more effective in solving their problems. Better direct transfers, security of food supply, and healthcare will make daily living easier for people.
- Education materials Digital Inclusion: It is necessary to connect all schools for long-term economic growth. If people learn specific skills, are literate in digital areas, and get access to low-cost higher education, they can apply for better and more permanent jobs.
- Sustainability and tolerant to climate change: Tackling poverty becomes much more difficult because of climate change. The use of sustainable ways in farming, proper disaster preparation, and eco-focused economic systems will reduce risks faced by at-risk communities.
India will succeed in ending poverty and having equal opportunities in the future if it keeps creating new policies, governs well, and supports economic growth for all.
Conclusion
Growth in the economy along with welfare schemes and increased financial services has helped reduce poverty in India. The effective use of targeted policies in reducing poverty is evident from the fact that extreme poverty dropped from 27.1% in 2011-12 to 5.3% in 2022-23 as measured with World Bank’s revised threshold. Therefore, the fact that some communities are not equal, prices keep increasing, workplaces are morh3e relaxed, and climate is an issue calls for further steps. Improvements in employment, education, health, and finances will lead to steady development in the country. In order to remove poverty for good and help many communities, India should develop a sustainable economy, introduce new policies, and make sure its economic growth helps all citizens. Technocratic governance and solid government decisions will allow every person in the country to experience many societal gains. Looking into the future, India should concentrate on sustainable development, unique policies, and inclusive economics to guarantee that poverty reduction turns into a permanent change and not just a fast recovery. If the country’s leadership is strong and its policies survive testing times, everyone can experience economic prosperity in the future.