CONTEXT

• India has lifted 269 million people out of extreme poverty between 2011–12 and 2022–23 (World Bank).
• Extreme poverty is defined as income below $3/day (PPP-adjusted) – insufficient for basic needs like food, water, shelter, and healthcare.
• India’s extreme poverty rate is now 5.3% of the population; second highest globally after Nigeria.
• Success largely due to targeted welfare: free food grains to 810 million people, Ayushman Bharat, and Jal Jeevan Mission.
• UN’s SDG Goal 1: Eliminate extreme poverty by 2030 – just 5 years remain.

CONCEPT

• Extreme poverty vs. Multidimensional Poverty Index (MPI) – the latter includes 10–12 indicators (health, education, sanitation, assets).
• India’s MPI fell from 29% in 2013-14 to 11.3% in 2022-23 (NITI Aayog); 248 million exited MPI poverty.
• Discrepancy exists: UNDP’s MPI shows 15% poverty rate (2019-21) due to fewer indicators.
• MPI indicators include: child mortality, clean cooking fuel, sanitation, drinking water, schooling.
• Some states—UP, Bihar, MP, WB, Maharashtra—accounted for 2/3rd of poverty reduction.

CURRENT

• Crossing poverty line doesn’t guarantee safety—shocks like illness or job loss can cause reversal.
• Need for universal, robust social security—distinct from populist freebies.
• Government must reprioritize expenditure without increasing fiscal deficit.
• Key shift post-2030: focus on job creation, not just poverty metrics.
• True development requires sustained livelihoods through MSMEs, skilling, entrepreneurship.
• Job creation must outpace threats from AI, robotics, and automation.
• Future focus: not just absolute poverty, but relative poverty and inequality reduction.
• China’s extreme poverty is near zero, showing India must continue striving.
• India ranks 66/109 on UNDP MPI—room for significant improvement.
• Job-led growth ensures dignity, resilience, and inclusive prosperity—essential for becoming a developed nation.

MAINS QUESTION

• Critically analyze the government’s expenditure priorities in addressing poverty and promoting job-led growth. What changes can be made to reprioritize expenditure without increasing the fiscal deficit?
• Discuss the potential benefits and challenges of implementing universal social security measures in India. How can these measures be designed to ensure dignity, resilience, and inclusive prosperity?