Poverty Reduction in India: Current Status and Future Challenges

Poverty is often a neglected topic, yet it remains crucial for ensuring a country's prosperity beyond just increasing the number of billionaires. Recent estimates by the World Bank indicate significant progress in poverty reduction in India.

Achievements in Poverty Reduction

• Over the past decade, India has lifted 17.1 crore people out of extreme poverty.
• Currently, only 2.3% of India's population is at the lowest global level of indigence.
• The country has transitioned into a 'low middle-income' category, with the poverty line adjusted upwards.
• India has also moved 37.8 crore people out of poverty within this new threshold.
• Post-inflation adjustments show 5.3% of Indians in extreme poverty and 23.9% in impoverished conditions.

Challenges and Future Prospects

Despite these achievements, there are ongoing challenges:

• India is in the middle of the income band for low middle-income countries and needs to eliminate extreme poverty entirely.
• The larger issue is whether India can uplift a quarter of its population above the low middle-income poverty line in the next six years.
• As the country's per capita income is expected to cross the upper middle-income threshold, economic growth should include everyone.

Strategies for Future Improvement

To ensure continued poverty reduction, India must:

• Emphasize both growth and income redistribution.
• Focus on delivering employment opportunities.
• Develop a social security mechanism that adapts to higher poverty thresholds.
• Implement reforms to enhance productivity and welfare.
• Establish a robust social security framework to prevent poverty relapse.
• Shift focus from entitlements to outcomes in food, health, and education.