India’s Success in Poverty Reduction: Acknowledging Government Schemes’ Role
The Economist’s recent article, India has undermined a popular myth about development, rightly celebrates India’s substantial progress in reducing extreme poverty, highlighting that only 1% of households now fall below the international poverty line. However, there is a conspicuous omission in the analysis: the pivotal role of the government schemes introduced under Prime Minister Narendra Modi’s leadership in driving this transformative change.
While the article acknowledges India’s remarkable progress, it stops short of crediting the government’s direct interventions, which have played a significant role in lifting millions of people out of poverty. Several flagship initiatives spearheaded by the Modi administration have been instrumental in reducing poverty, and it is essential to give credit where it is due.
Public Distribution System (PDS), for instance, has been a cornerstone of India’s food security strategy. As of June 2023, the system serves around 801 million beneficiaries, ensuring that the most vulnerable populations receive subsidized grains. This extensive network has been crucial in protecting millions from hunger and malnutrition, two major contributors to extreme poverty.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), launched long before Modi’s tenure but expanded significantly during his administration, has been a lifeline for rural households. In 2020-21, about 7.28 million households received 100 days of employment through this scheme, providing financial stability to those most in need. The scheme has been particularly valuable in drought-prone regions, where agriculture alone often fails to sustain families.
Similarly, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), which was introduced during the COVID-19 pandemic, offered free food grains to an astonishing 813.5 million beneficiaries. This initiative was not only critical in keeping families from falling deeper into poverty during the global crisis, but it also reflects the government’s focus on alleviating deprivation during times of crisis. Estimates suggest that the scheme helped prevent an increase in poverty levels during one of the most challenging periods for the global economy.
Another pivotal scheme, Pradhan Mantri Ujjwala Yojana (PMUY), has provided over 80 million LPG connections to women from Below Poverty Line (BPL) households. By reducing reliance on traditional cooking fuels such as firewood and charcoal, this scheme has improved health outcomes and economic stability for rural families, especially women. It has undoubtedly helped many escape the cycle of poverty by lowering healthcare costs associated with indoor air pollution and enabling women to engage in more productive activities.
Together, these schemes have not only provided immediate relief to those struggling but have also created a solid foundation for sustainable poverty reduction. According to a study by Surjit Bhalla and Karan Bhasin, India’s poverty reduction over the last three decades aligns closely with the government’s emphasis on rural welfare programs. Without these interventions, it is unlikely that India would have made such swift and substantial strides in reducing extreme poverty, particularly in a country where the vast majority of the population still resides in rural areas.
While the article by The Economist acknowledges that poverty has decreased, it fails to connect the dots between government policy and the results. By attributing India’s success solely to broad economic trends and generational changes, the article overlooks the active role of the Indian government in shaping these outcomes.
The success in lifting millions of people out of extreme poverty deserves to be celebrated not only for the figures it presents but also for the immense, direct contributions of Modi’s government. To ignore these efforts is to miss a significant part of the story. The combination of strong policy frameworks, targeted welfare schemes, and effective implementation has enabled India to reduce extreme poverty at an unprecedented pace. A more comprehensive analysis would highlight the role of these programs and give due credit to the government for its commitment to improving the lives of its citizens.
India’s journey out of extreme poverty is not just an economic story; it is a story of governance, leadership, and the will to make systemic change. While challenges remain, the progress made so far is a testament to the power of well-crafted and well-implemented policies. It’s time the global narrative acknowledged that success.
