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Q. “In a country where deprivation wears many faces, economic policy must begin at the margins, not the median.” Examine in the context of poverty alleviation strategies in India. (250 words)
23 Jul, 2025 GS Paper 3 EconomyApproach:
- Introduce the answer by briefing about poverty in India and key deprivation factors
- Delve into Poverty Alleviation Strategies in India: From Median to Margins
- Highlight Current Faces of Deprivation in India
- Give Policy Recommendations to Address Poverty from the Margins
- Conclude with a quote.
Introduction
India has made commendable progress in poverty reduction, with MPI falling from 29.17% in 2013–14 to 11.28% in 2022–23. Yet, with 129 million people still living under $2.15/day, deprivation remains multidimensional—spanning nutrition, sanitation, education, and livelihood insecurity—necessitating a further policy shift from the median (the average income group benefiting from growth) to the margins (the ultra-poor and most excluded), where vulnerability is deepest.
Body:
Poverty Alleviation Strategies in India: From Median to Margins
- Traditional Approach: Median-Centric
- Calorie-based poverty lines (Dandekar-Rath, 1971; Lakdawala, 1993).
- Tendulkar Committee (2009) introduced a broader consumption basket.
- These approaches, while useful, failed to capture multidimensional deprivation.
- Current Paradigm: Margins-Focused
- Multidimensional Poverty Index (MPI) includes health, education, and living standards.
- India’s adoption of Graduation Approach (BRAC model) for poverty alleviation:
- Combines livelihood support, financial inclusion, and social protection.
- Focuses on sustainable poverty exits rather than short-term relief
Current Faces of Deprivation in India:
- Income and Wealth Inequality: Top 10% hold 57% of national income, bottom 50% hold just 13% (World Inequality Report, 2022).
- Growth has disproportionately benefited the upper echelons.
- Informal Sector Vulnerability: Over 80% of workers are in the informal sector, lacking job security and social benefits.
- Urban unemployment rates remain high at 8.9%(CMIE, 2024).
- Rural-Agricultural Distress: Agriculture employs 46% of the workforce but contributes only 18% to GDP.
- More than 80% of farmers are small and marginal; their incomes are vulnerable to price shocks and climate change.
- Health and Educational Deprivations: Out-of-pocket expenditure is 58.7% of total health spending.
- 56.1% of Indian children suffer from learning poverty (World Bank, pre-pandemic), 80% of rural Grade 3 children can’t read a Grade 2 text (ASER 2022).
- Climate Vulnerability: Climate change disproportionately impacts agriculture, fishing, and livelihoods of the poor.
- Events like Cyclone Amphan (2020) displaced 2.4 million, mostly from poor communities.
Policy Recommendations to Address Poverty from the Margins
- Strengthening Social Safety Nets: Expanding the coverage and efficiency of DBTs, Ayushman Bharat, and PM-KISAN can improve the resilience of the ultra-poor.
- Livelihood Diversification in Rural Areas: Strengthening MGNREGA with skill-based and asset-building activities can promote sustainable livelihoods.
- Integrating schemes like Start-up Village Entrepreneurship Programme under DAY-NRLM can support rural entrepreneurship and reduce dependence on agriculture.
- Skilling and Employment Generation: Revamping Pradhan Mantri Kaushal Vikas Yojana (PMKVY) with localized, industry-aligned training will improve employment outcomes for the marginalized.
- Partnerships with private enterprises and MSMEs can create demand-driven jobs, especially in backward regions.
- Empowerment of Women and Marginalised Groups: Scaling Self Help Groups coverage and improving credit access through Stand-Up India can enable women-led enterprises.
- Implementing gender budgeting and land rights reforms can ensure institutional support for vulnerable communities.
- Nutrition and Basic Services Access: Strengthening Poshan Abhiyan and the PDS with fortified food will reduce malnutrition in high-burden districts.
- Climate-Resilient Development: Expanding PM Fasal Bima Yojana and incentivising solar irrigation through PM-KUSUM will safeguard farmer incomes.
- Jal Shakti Abhiyan must be scaled in drought-prone areas to enhance water security and reduce rural distress.
- Digital and Infrastructure Inclusion: Accelerating BharatNet implementation and rural digital literacy campaigns can bridge the digital divide.
- Platforms like e-Shram can link informal workers to benefits, financial tools, and employment opportunities.
- Region-Specific Poverty Strategies: A one-size-fits-all approach to poverty alleviation often fails to address the unique socio-economic and geographic challenges of different regions. Therefore, context-specific interventions are essential to ensure inclusive and effective outcomes.
- Tailored interventions under the Aspirational Districts Programme can address local development gaps.
- Flood-prone states need resilient infrastructure, while tribal regions require investments in health, education, and land rights.
Conclusion:
As Mahatma Gandhi said, “The true measure of a society is how it treats its most vulnerable members.” To build an inclusive and just society, India must design from the margins—ensuring that every citizen, no matter how vulnerable, becomes a participant in the development process.
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