India making substantial strides in tackling poverty

The Poverty Headcount Ratio in India has witnessed a commendable decline from 29.2 per cent in 2013-14 to a significantly lower 11.2 per cent in 2022-23, marking an extraordinary reduction of 17.8 percentage points.

This monumental achievement is underscored by the fact that 248 million Indians have successfully escaped multidimensional poverty over the last nine years, reports Asian Lite.

Such progress can be attributed to the concerted efforts and initiatives implemented by the government between 2013-14 and 2022-23 to comprehensively address various dimensions of poverty.

In a paradigm-shifting accomplishment, India has made substantial strides in tackling multidimensional poverty, as highlighted by the Multidimensional Poverty Index (MPI) in the National Multidimensional Poverty: A Progress Review -2023 report by Niti Aayog, government of India.

Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan significantly reduce the multidimensional poverty. Continued reduction in multidimensional poverty will strengthen India’s road to a developed economy by 2047.

This globally recognised measure transcends mere monetary considerations, utilizing the robust Alkire and Foster (AF) method to comprehensively evaluate poverty across various dimensions. The MPI identifies individuals as poor based on universally acknowledged metrics, providing a more holistic perspective compared to traditional monetary measures.

Uttar Pradesh emerges as a frontrunner in this transformative journey, witnessing the largest decline in the number of poor individuals, with 5.9 crore escaping multidimensional poverty in the State over the past nine years. Bihar closely follows suit with 3.7 crore individuals, while Madhya Pradesh and Rajasthan have recorded declines of 2.3 crore and 1.8 crore individuals, respectively. This indicates a positive trend, showcasing substantial progress in traditionally high-poverty states, thus narrowing inter-state disparities in multidimensional poverty.

The pace of the decline in the poverty headcount ratio gained momentum between 2015-16 and 2019-21, demonstrating an annual rate of decline of 10.6 per cent. This stands in stark contrast to the period from 2005-06 to 2015-16, which witnessed a rate of 7.7 per cent annually. The accelerated progress underscores the efficacy of targeted initiatives and policies during recent years.