Explain the various estimates of rural poverty in India. What measures have been adopted by the Government to reduce it?

Estimates of Rural Poverty in India

Several methods have been used to estimate rural poverty in India:

• Consumption Expenditure Method: This is the traditional method, based on the National Sample Survey Office (NSSO) data. Poverty lines are defined based on a minimum consumption basket required to meet basic nutritional and non-food needs. The poverty ratio is calculated as the percentage of the population below this poverty line.
• Headcount Ratio: This is the most common measure, representing the proportion of the population living below the poverty line. It provides a simple, easily understandable indicator of poverty prevalence.
• Multidimensional Poverty Index (MPI): Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the UNDP, MPI captures multiple deprivations at the individual level across three dimensions: health, education, and standard of living. It provides a more nuanced understanding of poverty than the headcount ratio. India’s National MPI was launched in 2023.
• Tendulkar Methodology (2009): This methodology shifted the base year for price indexation and considered a different consumption basket, leading to a lower poverty headcount compared to earlier estimates.
• Rangarajan Methodology (2014): This committee recommended a higher poverty line than the Tendulkar methodology, resulting in a higher poverty headcount.

Government Measures to Reduce Rural Poverty

The Government of India has implemented a range of measures to address rural poverty, which can be broadly categorized as follows:

1. Direct Poverty Alleviation Programs

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) (2005): This flagship program guarantees 100 days of wage employment to rural households, providing a safety net and enhancing rural livelihoods.
• National Rural Livelihoods Mission (NRLM) – Aajeevika (2011): This mission focuses on organizing the rural poor into Self-Help Groups (SHGs) and providing them with access to credit, training, and market linkages.
• Pradhan Mantri Gramin Awas Yojana (PMGAY) (2016): This scheme aims to provide affordable housing to rural households.

2. Employment Generation Schemes

• Prime Minister’s Employment Generation Programme (PMEGP): This scheme provides subsidies for setting up micro-enterprises in rural areas.
• Rural Self Employment Training Institutes (RSETIs): These institutes provide skill development training to rural youth, enabling them to pursue self-employment opportunities.

3. Inclusive Growth Initiatives

• Deendayal Antyodaya Yojana (DAY-NRLM): An integrated rural development program focusing on sustainable livelihood means for the rural poor.
• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) (2019): Provides income support of ₹6,000 per year to small and marginal farmers.
• National Food Security Act (NFSA) (2013): Ensures access to affordable food grains for vulnerable sections of the population.

Despite these efforts, challenges remain, including inadequate infrastructure, limited access to credit and markets, and social inequalities. Effective implementation, monitoring, and evaluation of these programs are crucial for achieving sustainable poverty reduction.