The task of estimating poverty in India is currently undertaken by the NITI Aayog’s task force on poverty elimination.
- This involves establishing poverty lines using data gathered by the National Sample Survey Office (NSSO), which operates under the Ministry of Statistics and Programme Implementation (MOSPI).
- The formation of the task force on Poverty Elimination within NITI Aayog took place in March 2015, with Vice Chairman (Arvind Panagriya at the time) leading the initiative.
Following the inaugural meeting of the Governing Council of NITI Aayog on February 8, 2015, chaired by Prime Minister Narendra Modi, a decision was made to institute a task force on poverty alleviation in India.
- This task force, headed by Arvind Panagariya, was established on March 16, 2015. The current methodology for estimating poverty is based on recommendations from a 2009 expert group led by Suresh D Tendulkar.
- According to this methodology, individuals whose daily consumption surpasses Rs 33.33 in urban areas and Rs 27.20 in rural areas are not considered poor.
- Statistics indicate that only 22% of the population falls under the poverty classification. The task force comprises a NITI member, a Chief Economic Advisor, experts, and secretaries from relevant ministries.
- Additionally, parallel Task Forces were intended to be set up in each State/Union Territory.
Formation and Mandate
- Established in March 2015, the task force initially aimed to present its report by June 30, 2015. Its primary objective was to outline a comprehensive plan for poverty eradication, along with recommending effective strategies and anti-poverty initiatives.
- The task force’s responsibilities encompassed crafting a clear definition of poverty and fostering collaboration and alignment with central ministries and state government task forces.
Proposed Recommendations
- The task force put forward several recommendations, including the formation of a committee to identify individuals below the poverty line (BPL), advocating for state involvement in delineating the BPL demographic.
- Additionally, it suggested the establishment of a fresh committee to collaborate with states and other stakeholders in defining and pinpointing the BPL populace.
- Moreover, the task force proposed four alternatives for monitoring poverty:
Advocating for the retention of the Tendulkar poverty line.
- Proposing the adoption of the Rangarajan or other elevated rural and urban poverty lines.
- Suggesting the tracking of progress among the bottom 30% of the population over time.
- Calling for the monitoring of advancements in poverty-related areas such as nutrition, housing, access to clean water, sanitation, electricity, and connectivity, encapsulated by the Multidimensional Poverty Index.
Strategy for Combating Poverty
The approach to addressing poverty requires the support of two fundamental pillars: sustained rapid growth that prioritizes employment generation and effective implementation of anti-poverty initiatives.
Sustained Rapid Growth with Emphasis on Employment
Sustained rapid growth serves a dual purpose:
- Firstly, it creates employment opportunities accompanied by a consistent rise in real wages, directly alleviating poverty.
- Secondly, it boosts government revenues, enabling accelerated expansion of social welfare spending.
- Given that poverty is predominantly concentrated in rural regions reliant on agricultural income, there is a strong endorsement of the recommendations outlined in the NITI Aayog occasional paper based on the deliberations of the Taskforce on Agricultural Development.
- These recommendations include enhancing agricultural productivity, ensuring fair prices for farmers, initiating a “second green revolution” particularly in rain-fed areas, reforming tenancy laws to aid small-scale farmers, and providing immediate assistance to farmers during natural calamities.
- Additionally, NITI Aayog suggests the establishment of Coastal Economic Zones (CEZs) to concentrate employment-intensive industries, leveraging economies of scale and agglomeration.
Enhancing Effectiveness of Anti-Poverty Programs
- The other crucial aspect of combating poverty involves enhancing the efficacy of anti-poverty programs such as the Public Distribution System (PDS), Midday Meal Scheme, MGNREGA, and Housing for All.
- Specific suggestions are provided to improve the functioning of each program.
- The Jan Dhan Yojana is aimed at modernizing anti-poverty efforts by transitioning from cumbersome and leaky benefit distribution systems to direct benefit transfers (DBT).
- Each Gram Panchayat is encouraged to identify and uplift five of the poorest families in the village, ensuring they receive all entitled government benefits.
- With Aadhar accounts facilitating data aggregation, the government can establish a robust database to assess the total benefits accruing to each household, potentially leading to consolidated cash transfers in lieu of multiple schemes, unless there are compelling reasons to retain in-kind transfers.
NITI Aayog’s Multidimensional Poverty Index Report (MPI)
Conclusion
The task force’s primary objective did not involve revising the poverty line; rather, it was tasked with delineating a working definition of poverty and fostering collaboration with central ministries and state government task forces. Its core responsibilities included devising a comprehensive plan for poverty eradication and suggesting effective anti-poverty measures. Despite deliberations, consensus regarding either retaining the Tendulkar poverty line or adopting a higher threshold remained elusive. Consequently, the Task Force proposed further examination by prominent poverty specialists before reaching a definitive conclusion. It is therefore recommended to establish an expert committee to make an informed decision on setting the appropriate poverty line level.
FAQs
Q: What is the Niti Aayog Task Force on Poverty Elimination?
A: The Niti Aayog Task Force on Poverty Elimination is a specialized group established by the Government of India’s policy think tank, Niti Aayog. It is tasked with formulating strategies and policies aimed at reducing poverty across the country.
Q: What is the objective of the Niti Aayog Task Force on Poverty Elimination?
A: The primary objective of the Niti Aayog Task Force on Poverty Elimination is to develop comprehensive and effective measures to alleviate poverty in India. This involves identifying key challenges, analyzing existing policies, and proposing innovative solutions to address the root causes of poverty.
Q: How does the Niti Aayog Task Force on Poverty Elimination operate?
A: The Task Force operates through a collaborative approach involving policymakers, experts, stakeholders, and representatives from various sectors. It conducts research, consults with relevant stakeholders, analyzes data, and formulates recommendations for policy interventions to tackle poverty effectively.
Q: What are some key initiatives undertaken by the Niti Aayog Task Force on Poverty Elimination?
A: Some key initiatives include the design and implementation of targeted poverty alleviation programs, promotion of inclusive economic growth, enhancement of social protection mechanisms, and empowerment of marginalized communities through skill development and access to resources.
Q: How does the Niti Aayog Task Force on Poverty Elimination contribute to India’s development agenda?
A: The Task Force plays a crucial role in shaping India’s development agenda by providing evidence-based insights, policy recommendations, and implementation strategies to address poverty effectively. Its efforts contribute to fostering sustainable and inclusive growth, ultimately improving the quality of life for millions of people across the country.
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