Opinion | India Leads the World in Poverty Alleviation Under Modi’s Direction

Raising crores of people was seen as a very difficult, if not impossible, endeavor in India, an impoverished country. It turns out that decisive leadership was all that was required to step in on this front and produce quick outcomes. The percentage of Indians living in multidimensional poverty is thought to have decreased to 11.28 percent since 2014. That percentage was 29.17 percent in 2014. In only nine years, India has managed to move a remarkable 24.82 crore people out of multidimensional poverty.

In 2014, what changed? For the first time in three decades, the Indian people chose a majority administration. The BJP, led by Narendra Modi, swept to power. Ten years later, it is clear that the poor have benefited most from India’s election decisions, first in 2014 and then again in 2019.

That is what was disclosed in the discussion paper by NITI Aayog, which was made public on Monday. The think group, whose main responsibility is to create new policies and enhance current ones, predicts that India will reach single-digit poverty levels this year. This is undoubtedly a historic accomplishment for a nation whose poverty was once its defining characteristic on the planet. The report also predicted that India would likely accomplish the Sustainable Development Goals (SDGs) well in advance of 2030, or at least cut multidimensional poverty in half.

The Multidimensional Poverty Index (MPI) showed the largest drop in the proportion of the population classed as poor in states like Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan.

Here’s a different viewpoint: The proportion of MPI impoverished people in India’s overall population in 2005–06 was 55.34 percent. The percentage of people who may still be deemed to be living in multidimensional poverty today is just around 11.82 percent. Of course, it is impossible to overlook the fact that the proportion of impoverished MPI residents decreased from 55.35 percent in 2005–06 to 29.17 percent in 2014. This aligns with the terms of the UPA 1 and 2 administrations.

There are other organizations that highlight the progress India has made in eradicating poverty besides the NITI Aayog. As the World Bank had previously reported, the proportion of Indians living in severe poverty has decreased from 18.7% in 2015 to 12% in 2021. According to the United Nations, 415 million people in the nation have overcome multidimensional poverty in the 15 years between 2005–06 and 2019–21 (2022). In India, the percentage of people living below the poverty line of $2.15 per day was estimated by UNDP to have decreased to 10% in 2021. Additionally, according to statistics from the World Bank, India’s poverty headcount ratio fell from 18.73 percent in 2015 to 11.9% in 2021, with an average daily income of $2.15.

India’s success in rescuing millions of people from multifaceted poverty might serve as a model for other emerging and impoverished nations. India may be a model for the Global South on how to reduce poverty via a variety of government initiatives and provide development to those who need it most. India has already begun to take action on this front, as shown by the increasing interest from other nations in the country’s extensive digital public infrastructure (DPI) or even its physical infrastructure enabler, the Gati Shakti Masterplan. The United Payments Interface (UPI) is admired worldwide now because of the astounding penetration of digital payments that India has attained.

“Garibi Hato” is no longer just a slogan.
“Garibi Hatao” is more than simply a political catchphrase used by the current administration to inspire optimism among the nation’s impoverished and disadvantaged. Narendra Modi has made an effort to portray the impoverished as his main support base in recent times. Consequently, the Modi government’s top policy goal now is to ensure their growth and upliftment. Numerous programs and initiatives support this goal, including the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), Pradhan Mantri Ujjwala Yojana, Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Awas Yojana, Jal Jeevan Mission, Poshan Abhiyan, Samagra Shiksha, and Pradhan Bharat Mission, to mention a few.

The goal of all these projects is to help India’s most marginalized and impoverished citizens. The fact that there are significant connections between them all is the most fascinating aspect. The ultimate goal has been to give the poor all the necessities that they had been denied since independence, whether it is through the construction of toilets and the guarantee of hygienic sanitation through the Swachh Bharat Mission or the provision of tapped water connections to crores of households under the Jal Jeevan Mission.

In a same vein, the central government is making it a goal to guarantee that every individual has a pucca home, that these houses have connections for power and LPG cylinders, and that the occupants of the abovementioned dwellings have bank accounts and are online. The objective is uncomplicated: providing Indians with the means to escape poverty and live dignified lives.

Simultaneously, programs such as Poshan Abhiyan and Anaemia Mukt Bharat have greatly improved access to medical services, resulting in a notable reduction in impoverishment. India’s newborn mortality rate was lower than South Africa’s as of 2020, and infant mortality has also been declining gradually.

In addition, the Modi administration oversees the largest food security initiative in the world, which distributes free food grains to 81.35 crore people in both rural and urban India. In a similar vein, recipients now get direct benefit payments directly into their bank accounts. As a result, leakage connected to corruption has decreased, and this has been made feasible by the establishment of more than 500 million new Aadhaar-linked bank accounts since 2014.

In the next years, infrastructure is anticipated to contribute significantly to India’s economic development. Between 2024 and 2030, the Center intends to spend Rs 143 lakh crore in infrastructure. That is twice as much as India has spent in the last seven years on infrastructure. It goes without saying that this has given Indians more work. The MGNREGA project has resulted in a significant growth in employment demand in rural India. This demand is roughly in line with the budgeted allocation for the plan, which has increased from Rs 32,992 crore in 2013-14 to Rs 60,000 crore in 2023-24. This is largely due to the fact that rural India is finally receiving infrastructure.

Similarly, as a consequence of the aggressive efforts towards ‘Make in India’ and India’s desire to become a global manufacturing powerhouse, Indian firms reported a 36 per cent rise in job posts over the last year. In the meanwhile, farmers have been receiving an annual payment of Rs 6,000 from the Modi administration. If rumors circulating inside the executive branch are to be believed, this sum may be quadrupled in the interim budget that Finance Minister Nirmala Sitharaman presents the following month.

Farmers have benefited from this direct transfer by having a buffer against poverty, particularly those with tiny land holdings and low crop harvests. Meanwhile, with the e-National Agricultural Market (eNAM), farmers may now sell their goods to the highest bidder, hence raising income levels.

In terms of earnings, India’s weighted mean income increased from Rs 4.4 lakh in 2014 to Rs 13 lakh in FY23. During the same time span, India’s nominal per capita income almost quadrupled from Rs 86,647 in 2014–15 to Rs 1.72 lakh in 2022–23. India’s per capita income is estimated to rise from Rs 2 lakh ($2500) in FY23 to Rs 14.9 lakh ($12,400) in FY47, according to a forecast by the State Bank of India.

An encouraging sign of India’s efforts to reduce poverty is the growing number of individuals who are joining the middle class. Thirteen percent of the population has moved up from the lower-class strata in comparison to 2011.

In summary, India is rapidly decreasing multifaceted poverty. Other nations may follow the “India Model” and accomplish the same goals. But first and foremost, there must be devoted leadership that is motivated by the desire to end poverty and improve people’s quality of life. Moreover, the mitigation and ultimate eradication of poverty cannot be limited to a governmental initiative. It also helps that individuals from many walks of life participate.