Strategies for poverty alleviation

Abstract

Poverty in India still remains one of the most persistent socio-economic challenges despite decades of economic growth and governmental interventions. Defined broadly, poverty is a condition where individuals lack the financial resources to meet basic life necessities such as food, shelter, healthcare, and education. However, it is not merely the absence of income. Poverty encompasses a broader deprivation of capabilities, opportunities, and access to essential services that are vital for overall human development and well-being. India’s official poverty line, last updated in 2011–12 defined by the NITI Aayog using the Tendulkar Committee recommendations, with the last significant update in 2011–12. The poverty line is based on per capita consumption expenditure and is set at ₹972 per person per month for rural areas and ₹1,407 for urban areas, has been widely criticized for being outdated and narrowly focused on caloric intake and failing to account for inflation, regional price differences, and evolving economic realities. Meanwhile, global benchmarks like the World Bank’s $2.15/day poverty line and multidimensional measures such as the UNDP-Oxford MPI offer a more holistic view, factoring in education, health, and living standards. Though India has reduced multidimensional poverty from 55% in 2005–06 to 15% in 2021–22, major disparities remain across regions, castes, and genders. Key indicators such as literacy, employment, and malnutrition continue to reflect deep-rooted poverty. As of 2023, the national unemployment rate stood at 7.8%, and over one-third of children under five are still stunted or underweight. India’s overall literacy rate, according to PLFS 2021–22, stands at 77.7%, with a continued gender gap disadvantaging women. While sanitation, electricity, and other infrastructure have improved, large gaps in access and inclusion persist especially for the most vulnerable.