Poverty in India
Measuring Poverty
Major Committees and Methods:
| Committee | Year | Approach | Poverty Estimate |
|---|---|---|---|
| Lakdawala | 1993 | Calorie-based per capita expenditure | Reference for years 1990s–2000s |
| Tendulkar | 2009 | Consumption basket (multidimensional) | 21.9% (2011-12) |
| Rangarajan | 2014 | Revised consumption basket | 29.5% (2011-12) |
| NITI Aayog MPI | 2023 | 12-indicator MPI | 11.28% (2022-23) |
NITI Aayog Multidimensional Poverty Index (MPI):
- 12 indicators across 3 dimensions: Health (nutrition, child mortality), Education (years of schooling, school attendance), Living Standards (cooking fuel, sanitation, drinking water, electricity, housing, assets)
- India's MPI poverty: 11.28% (2022-23) — down from 29.17% in 2013-14
- ~415 million people lifted out of MPI poverty in 15 years (2005-2021) — UNDP report
World Bank Global Poverty Line: $2.15/day (2017 PPP) — extreme poverty
India's progress on poverty reduction:
- Fastest large-country poverty reduction in recent decades
- Key drivers: MGNREGA, direct benefit transfers, PM Awas Yojana, food security, rural roads
Human Development Index (HDI)
HDI: Composite index measuring 3 dimensions: 1. Long and healthy life — Life expectancy 2. Knowledge — Mean years of schooling + expected years of schooling 3. Decent standard of living — GNI per capita (PPP)
India's HDI Rank: 134 out of 193 countries (HDR 2023-24)
- HDI value: 0.644 (medium human development)
- Life expectancy: 67.7 years
- Expected years of schooling: 12.6 years
- GNI per capita: $9,047 PPP
Countries above India in South Asia: Sri Lanka (HDI 0.78, rank 78), China (0.788), Bhutan, Bangladesh improving
Gender Inequality Index (GII): India 0.437, rank 108 — poor female labour force participation (24%) drags score
Employment Situation
Key Employment Indicators (2023-24)
| Indicator | Value |
|---|---|
| Labour Force Participation Rate (LFPR) | ~42% (PLFS 2022-23) |
| Female LFPR | ~24% nationally (TN ~35%) |
| Unemployment rate | ~3.2% (PLFS) |
| Youth unemployment (15-29) | ~10% |
| Workers in agriculture | ~45% of workforce |
| Organised sector workers | ~10% of workforce |
| Informal sector | ~90% of workforce |
Annual Jobs Report (CMIE/PLFS): India needs to create 12 million jobs/year to absorb new entrants
MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
- Enacted: 2005; Implemented: February 2, 2006
- Legal guarantee: 100 days/year of unskilled work per rural household
- Wage: Varies by state; national average ~₹267/day (TN: ₹294)
- Works allowed: Water conservation, land development, rural roads, afforestation, drought-proofing
- Women: Minimum 1/3 of beneficiaries must be women; actual ~54%
- Social audit: Mandatory every 6 months
- Coverage: ~8-10 crore households/year; budget ~₹60,000-73,000 crore
- Employment Guarantee: If work not provided within 15 days → unemployment allowance payable
Impact of MGNREGA:
- Raised rural wage floor across India
- Reduced distress migration to cities in lean agricultural seasons
- Women's financial independence and participation
- Significant water-body creation (ponds, check dams)
Criticism: Leakages and corruption (ghost workers in muster rolls), delays in wage payment, limited to 100 days (insufficient for poorest)
Food Security
National Food Security Act (NFSA) 2013
- Coverage: 75% rural, 50% urban population (~81 crore people)
- Entitlement: 5 kg/person/month — rice ₹3, wheat ₹2, coarse grains ₹1/kg
- Antyodaya Anna Yojana (AAY): Poorest households — 35 kg/household/month at same prices
- Implemented through PDS (Public Distribution System) / ration shops
PM Garib Kalyan Anna Yojana (PMGKAY):
- Launched March 2020 (COVID response); made permanent from January 2024
- Free 5 kg foodgrains/month to 80+ crore NFSA beneficiaries — at zero cost to beneficiary
- World's largest food subsidy programme; cost ~₹2 lakh crore/year
PM POSHAN (formerly Mid-Day Meal):
- Hot meals to 11.8 crore children in Classes I–VIII in government schools
- World's largest school feeding programme
- Addresses hunger, improves attendance, reduces dropout
ICDS (Integrated Child Development Services):
- Supplementary nutrition, pre-school education, health check-ups for children 0–6 years and pregnant/lactating mothers
- Through Anganwadi centres (~14 lakh centres)
Health Schemes
Ayushman Bharat (2018)
Two components:
1. PM Jan Arogya Yojana (PM-JAY):
2. Ayushman Arogya Mandirs (formerly HWCs):
Other Key Health Schemes
| Scheme | Purpose |
|---|---|
| Janani Suraksha Yojana (JSY) | Cash incentive for institutional delivery; reduces maternal mortality |
| PMMVY (PM Matru Vandana Yojana) | ₹6,000 to first pregnant woman; direct benefit transfer |
| Mission Indradhanush | Full immunisation coverage for children and pregnant women |
| National TB Elimination Programme | Eliminate TB by 2025 (India's target — ahead of global 2030) |
| Poshan Abhiyaan | Reduce stunting, undernutrition, anaemia; mission-mode convergence |
Education Schemes
National Education Policy (NEP) 2020
School structure change: 10+2 → 5+3+3+4
| Stage | Age | Years |
|---|---|---|
| Foundational | 3–8 | 5 years (3 pre-school + Grades 1-2) |
| Preparatory | 8–11 | 3 years (Grades 3-5) |
| Middle | 11–14 | 3 years (Grades 6-8) |
| Secondary | 14–18 | 4 years (Grades 9-12) |
Key NEP provisions:
- Mother tongue instruction up to Grade 5 (preferably Grade 8)
- No rigid stream separation (Science/Arts/Commerce) — multidisciplinary
- Multiple entry/exit in higher education; 4-year UG degree with honours
- Single regulator for higher education — HECI replacing UGC and AICTE
- 6% of GDP on education (target; current ~4.6%)
- 50% Gross Enrollment Ratio (GER) in higher education by 2035 (current ~28%)
- Vocational education from Class 6
Tamil Nadu concern: Opposition to 3-language formula as possible Sanskrit imposition; TN has 2-language (Tamil + English) policy
Samagra Shiksha
- Unified scheme combining SSA (Sarva Shiksha Abhiyan) + RMSA + TE
- Right to Education Act (RTE) 2009 implementation
- Free and compulsory education to 6–14 year olds
- 25% reservation in private schools for EWS children
Housing and Infrastructure
PM Awas Yojana (PMAY)
PMAY-Gramin (Rural):
- Target: 2.95 crore houses by 2024 (extended); provides ₹1.2-1.3 lakh per house
- Beneficiary builds own house; direct transfer to bank account
- Convergence with toilets (SBM), MGNREGA (for labour), LPG (Ujjwala)
PMAY-Urban:
- 4 components: Beneficiary-led construction, Affordable Housing through partnerships, Credit-linked subsidy, In-situ slum redevelopment
- Target: "Housing for All" by 2022 (extended)
Jal Jeevan Mission (JJM)
- Target: Piped water connection to every rural household — 100% by 2024 (extended 2026)
- Progress: ~15.38 crore tap connections added since 2019 (total ~19+ crore from 3.23 crore)
- Before JJM (2019): Only 3.23 crore (17%) rural households had piped water
- Tamil Nadu JJM: ~95% functional household tap connection coverage (2024)
Swachh Bharat Mission (SBM)
- Phase 1 (2014-2019): Construct 10.28 crore toilets — declared Open Defecation Free (ODF)
- Phase 2 (2020-2024): ODF-Plus — solid/liquid waste management, plastic waste management
- Impact: Sanitation coverage 38.7% (2014) → 100% (declared); significant reduction in diarrhoeal deaths
Social Protection and Inclusion
PM KISAN
- ₹6,000/year (₹2,000 every 4 months) direct income support to all farmer families
- No income criterion; all small/marginal farmers (2 hectares or less land holding)
- ~11 crore beneficiaries; direct bank transfer
- Annual outlay: ~₹60,000 crore
PM Ujjwala Yojana (PMUY)
- Free LPG connections to BPL households; especially women
- Phase 1 (2016-2020): 8 crore connections
- Phase 2 (2021-): Additional 1 crore connections; special focus on migrants
- Reduces indoor air pollution; women's health benefit; reduced firewood collection burden
Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Financial inclusion: Zero-balance bank account for every unbanked citizen
- As of 2024: ~53 crore accounts opened; ₹2.27 lakh crore deposits
- Features: RuPay debit card, ₹1 lakh accident insurance, ₹30,000 life insurance, overdraft up to ₹10,000
- Enabled Direct Benefit Transfer (DBT) — LPG subsidies, scholarships, MGNREGA wages directly to accounts
Direct Benefit Transfer (DBT)
- Platform to transfer government subsidies/payments directly to beneficiaries' Aadhaar-linked bank accounts
- Eliminates middlemen; reduces leakage
- DBT in LPG: ₹1.78 lakh crore saved (2013-2023) due to elimination of ghost beneficiaries and diversion
Tamil Nadu Welfare Context
| Scheme | Status in TN |
|---|---|
| PDS (Public Distribution System) | Universal PDS (all families, not targeted); rice at ₹1/kg |
| Amma Canteen | Subsidised meals at ₹5 (idli), ₹10 (meals) |
| Kalaignar Kapitu Thittam | Health insurance scheme (alongside PM-JAY) |
| MGNREGA | TN wage ₹294/day; strong women participation |
| SHG (Self Help Groups) | TN among top states; TNCDW manages ~5 lakh SHGs |
| Noon Meal Scheme | TN's version of PM Poshan; free meals + nutrition support |
TN's PDS: Tamil Nadu operates universal PDS (unlike the targeted national PDS) — rice at ₹1/kg to all ration card holders; considered a model state in food distribution.
Board Exam Tips
- MGNREGA: 2005/2006; 100 days; legal guarantee; 1/3 women; unemployment allowance if not provided
- NFSA 2013: 75% rural + 50% urban; 5 kg/person/month; AAY = 35 kg/household
- PMGKAY (2024 permanent): Free 5 kg to 80+ crore — merged with NFSA
- Ayushman Bharat: PM-JAY (₹5 lakh/family, 55 crore people) + Health and Wellness Centres
- 2024: PM-JAY extended to all 70+ year citizens
- NEP 2020: 5+3+3+4 structure; mother tongue instruction; 6% GDP target; single regulator HECI
- NITI Aayog MPI poverty: 11.28% (2022-23); 415 million lifted out in 15 years
- PMJDY: 53 crore accounts; zero-balance; RuPay card; enabled DBT
- PM Ujjwala Yojana: Free LPG to BPL women — 9 crore connections
- PM KISAN: ₹6,000/year to farmers; 11 crore beneficiaries; direct bank transfer
- TN PDS: Universal (not targeted); rice ₹1/kg — model state
Frequently Asked Questions
India's poverty measurement evolution: (1) Planning Commission method (Calorie-based): 2,400 kcal/day (rural), 2,100 kcal/day (urban). (2) Lakdawala Committee (1993): Poverty line based on per capita expenditure linked to calorie norms; urban/rural separate. (3) Tendulkar Committee (2009): Shifted from calorie to consumption-based multidimensional approach; recommended uniform poverty line (₹816/month rural, ₹1,000/month urban in 2011-12); estimated poverty at 21.9% (2011-12). (4) Rangarajan Committee (2014): Higher poverty line (₹972/month rural, ₹1,407/month urban in 2011-12); estimated poverty at 29.5%. NITI Aayog Multidimensional Poverty Index (MPI): Uses 12 indicators across health, education, and living standards; India's MPI poverty 11.28% (2022-23 — down from 29.17% in 2013-14). Global Poverty Line: World Bank — $2.15/day (2022) at 2017 PPP. India's progress: Lifted ~415 million out of multidimensional poverty in 15 years (2005-2021) — UNDP data.