UPSC MainsECONOMICS-PAPER-II202010 Marks
Q15.

Comment on poverty alleviation schemes undertaken by the Government of India for urban poor.

How to Approach

This question requires a comprehensive overview of the government's initiatives aimed at poverty alleviation specifically for the urban poor. The answer should begin by defining urban poverty and its unique characteristics. Then, it should systematically discuss various schemes, categorizing them based on their approach (e.g., employment generation, housing, social security). A critical analysis of the schemes' effectiveness, challenges, and recent developments is crucial. The structure will be: Introduction, Schemes categorized by approach, Challenges, Government Efforts & Way Forward, and Conclusion.

Model Answer

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Introduction

Urban poverty, distinct from its rural counterpart, is characterized by precarious employment, inadequate housing, limited access to basic services, and social exclusion. According to the National Sample Survey Office (NSSO) 70th round (2015), approximately 25.7% of the urban population in India lived below the poverty line. Recognizing the growing challenge of urban poverty, the Government of India has launched numerous schemes aimed at providing livelihood support, affordable housing, and social security to the urban poor. These initiatives have evolved over time, reflecting changing socio-economic realities and policy priorities. This answer will comprehensively examine these poverty alleviation schemes, their impact, and the challenges they face.

Employment Generation Schemes

These schemes focus on providing wage employment opportunities to the urban poor.

  • National Urban Livelihoods Mission (NULM) (2013): Aims to reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self-employment and skilled wage employment opportunities. It has two main components: Skill Development and Employment through Training and Placement (DDU-GKY) and Self-Employment Programme (SEP).
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): While primarily a rural scheme, some states have extended its benefits to urban areas, providing a safety net for the urban unemployed.
  • Prime Minister’s Employment Generation Programme (PMEGP): Promotes self-employment through the establishment of micro-enterprises. It provides subsidies for setting up small businesses.

Housing Schemes

Addressing the housing deficit is crucial for urban poverty alleviation.

  • Pradhan Mantri Awas Yojana – Urban (PMAY-U) (2015): This flagship scheme aims to provide “Housing for All” by 2022 (now extended). It has four components: In-situ Slum Redevelopment, Affordable Housing in Partnership, Subsidy for Beneficiary-led construction, and Model Housing.
  • Basic Services to the Urban Poor (BSUP) (under JNNURM): Focused on providing basic amenities like water supply, sanitation, and solid waste management in urban slums.
  • Rajiv Awas Yojana (RAY): Aimed at providing affordable housing to slum dwellers with property rights. (Largely subsumed under PMAY-U)

Social Security and Welfare Schemes

These schemes provide a safety net for vulnerable urban populations.

  • National Social Assistance Programme (NSAP): Comprises various schemes like Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), and Indira Gandhi National Disability Pension Scheme (IGNDPS).
  • Rashtriya Swasthya Bima Yojana (RSBY): Provided health insurance coverage to BPL families. (Now replaced by Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY))
  • Public Distribution System (PDS): Provides subsidized food grains to eligible households.
  • Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM): Focuses on skill development, self-employment, and shelter for the urban homeless.

Recent Developments and Initiatives

The government has been focusing on convergence and digitalization of these schemes.

  • PM-SVANidhi (2020): Provides collateral-free loans to street vendors.
  • Digital India Mission: Leveraging technology for efficient delivery of services and tracking the progress of schemes.
  • One Nation One Ration Card (ONORC): Enables portability of food security benefits across states.

Challenges in Implementation

Despite numerous schemes, several challenges hinder effective poverty alleviation.

  • Lack of Awareness: Many eligible beneficiaries are unaware of the schemes and their benefits.
  • Bureaucratic Delays: Complex procedures and bureaucratic hurdles often delay the disbursement of benefits.
  • Corruption: Leakage of funds and corruption at various levels divert resources away from the intended beneficiaries.
  • Inadequate Infrastructure: Lack of adequate infrastructure, particularly in slums, limits the effectiveness of schemes.
  • Data Gaps: Accurate data on urban poverty is often lacking, hindering effective targeting of schemes.
  • Migration: High levels of migration in urban areas make it difficult to identify and track beneficiaries.
Scheme Focus Area Key Features
NULM Employment & Livelihoods Skill development, self-employment, shelter for homeless
PMAY-U Housing Affordable housing, slum redevelopment, subsidy for construction
NSAP Social Security Pension schemes for old age, widowhood, and disability

Conclusion

The Government of India has undertaken a wide range of poverty alleviation schemes for the urban poor, addressing critical areas like employment, housing, and social security. While these initiatives have yielded some positive results, significant challenges remain in terms of implementation, targeting, and ensuring effective delivery of benefits. A greater focus on convergence of schemes, leveraging technology, simplifying procedures, and addressing corruption is crucial. Furthermore, a holistic approach that considers the specific needs of different urban vulnerable groups and promotes inclusive urban development is essential for achieving sustainable poverty alleviation.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Slum Redevelopment
The process of upgrading or replacing existing slums with improved housing and infrastructure, often involving public-private partnerships.
Urbanization
The process of population shift from rural areas to urban areas, the gradual increase in the proportion of people living in urban areas, and the resulting societal changes.

Key Statistics

As per the Census of India 2011, approximately 17.3% of India’s urban population lives in slums.

Source: Census of India, 2011

India’s urban population is projected to reach 600 million by 2036, accounting for approximately 40% of the total population.

Source: United Nations, World Urbanization Prospects, 2018 Revision

Examples

Slum Redevelopment in Dharavi, Mumbai

Dharavi, one of Asia’s largest slums, has been the subject of numerous slum redevelopment projects, aiming to provide better housing and infrastructure to its residents. However, these projects have faced challenges related to land acquisition, rehabilitation, and ensuring the participation of slum dwellers.

Frequently Asked Questions

What is the difference between in-situ slum redevelopment and slum rehabilitation?

In-situ slum redevelopment involves rebuilding slums on the same land, providing residents with upgraded housing. Slum rehabilitation typically involves relocating slum dwellers to alternative housing locations.

Topics Covered

EconomySocial IssuesPovertySocial WelfareUrban Development