PILLAR#6C- POVERTY, INEQUALITY, MGNREGA & OTHER SCHEMES

Table of Contents
64 🤲🤲💸💸 HRD → Poverty (गरीबी) ............................................................................................................... 1110
64.1.1 🤲🤲🤲🤲🤲🤲Vicious Circle of Poverty (गरीबी का दुष्चक्र/�वषचक्र) ..................................................... 1112
64.1.2 🤲🤲🤲🤲Economics Nobel 2019 for Global Poverty Alleviation ............................................... 1112
64.2 🤲🤲💸💸📏📏 Poverty → Measurement / Estimation (गरीबी का �नधार्रण) ................................................ 1113
64.2.1 🤲🤲💸💸📏📏 Videshi methods → World Bank: ~21% Indian juntaa is poor ........................... 1113
64.2.2 🤲🤲💸💸📏📏 Videshi methods → UNDP-MPI: ~16% Indian juntaa is poor .......................... 1113
64.3 🤲🤲💸💸📏📏 Videshi methods → Inequality (असमानता )..................................................................... 1114
64.3.1 🤲🤲🤲🤲🤲🤲World Inequality Report 2022: ................................................................................ 1115
64.3.2 🤲🤲💸💸📏📏 Oxfam Inequality Index वै��क असमानता सूचकांक ....................................................... 1115
64.3.3 🙇🙇🙇♀Period Poverty (मा�सक धमर् के चलते गरीबी) ............................................................................... 1115
64.4 🤲🤲💸💸📏📏 DESHI methods: (BPL: गरीबी रेखा से नीचे) ........................................................................... 1116
64.4.1 🤲🤲💸💸📏📏 DESHI methods → SECC-2011 ............................................................................. 1116
64.4.2 🤲🤲💸💸📏📏 deshi methods → NITI-MPI: ~25% Indian juntaa is poor ................................. 1118
64.4.3 🤲🤲💸💸📏📏 deshi methods → 📊📊📊📊📊📊📊📊 Bare Necessities Index (BNI) By 📙📙📙📙ES21
1118
64.4.4 📊📊📊📊📊📊📊📊 BNI index Findings (सूचकांक से �ा त� सामने आए?) ............................................ 1120
64.4.5 📊📊📊📊📊📊📊📊 ✍BNI index Analysis: Conclusion / Significance? [�न�षर् /मह�] ............... 1121
64.5 📙📙📙📙📙📙⚡👷👷 ⏫Economic Growth to ⏬poverty says 📙📙📙📙ES21 ................................... 1121
64.5.1 📙📙📙📙📙📙⚡👷👷 Trickle Down in China [आ�थक वृ�द्ध का नीचे क� ओर टपकना] ............................ 1122
64.5.2 📙📙📙📙📙📙⚡👷👷 Moderate Inequality =NOT BAD! Says ES21 .......................................... 1123
64.5.3 📙📙📙📙📙📙⚡👷👷 Conclusion: Eco Growth⏫ → Poverty⏬ ............................................ 1123
64.6 🤲🤲💸💸 Poverty → Poverty Removal (गरीबी उ�ूलन) ........................................................................... 1123
64.7 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → MGNREGA (2005) ............................................................... 1124
64.7.1 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → MGNREGA Problems/Corruption ............................ 1125
64.7.2 🤳🤳MGNREGA: Use of JAM-DBT ............................................................................................ 1125
64.7.3 🤳🤳MGNREGA: Use of Space technology (अंत�र� प्रौद्यो�गक� का उपयोग) ...................................... 1126
64.7.4 🤳🤳MGNREGA: Use of Apps ..................................................................................................... 1126
64.7.5 📔📔📔📔 MGNREGA: Future suggestion by ES19? (अ� सुझाव दी�जए) ....................................... 1126
64.7.6 👻👻(🧱🧱⛏:💸💸🤲🤲�)Atma-Nirbhar → PM Garib Kalyan Rojgar Abhiyaan (GKRA) .... 1127
64.7.7 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → National Livelihood Missions =Skill+Loan .............. 1127
64.7.8 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → DISHA Committees (2016)........................................ 1128
64.7.9 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → Mission Antyodaya (2017) ......................................... 1129

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 64.7.10 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → SMILE 75 (�भखारी-मु� हो 75 शहर) ............................ 1129
64.8 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → Directly give ₹ ₹ → UBI ...................................................... 1129
64.8.1 👌👌 UBI: Pro-Arguments by Eco Survey (इस सुधार के प� म� तकर् ) ................................................. 1129
64.8.2 👎👎 UBI: Anti-Arguments by Eco Survey (सावर्�त्रक बु�नयादी आय �वरोधी तकर् ) ................................. 1130
64.9 �💸💸💸💸Poverty Removal: DBT → E-Rupi ................................................................................... 1131
64.10 🤲🤲🤲🤲:✍→ Conclusion-Template-Poverty (�न�षर्- गरीबी �नवारण)............................................ 1131
64.10.1 ✍Past Questions in UPSC Mains Exams ........................................................................... 1131

64 🤲🤲💸💸 HRD → POVERTY (गरीबी)

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Definition: Poverty is the lack of sufficient money to meet the minimum standard of living-
including food, clothing, shelter, health and education. भोजन, कपड़े, आश्रय, �ा� और �श�ा सिहत जीवन के
�ूनतम �र को पूरा करने के �लए पयार्� धन/पैसों क� कमी को गरीबी कहेते है।
Factors responsible for poverty in India
1. Poor fiscal capacity of the govt due to tax evasion and avoidance versus large population →
Public healthcare, education, housing, water & sanitation infra is poor →
a. Educational outcomes are poor → illiteracy, lack of vocational skills → Unemployment,
Underemployment, Disguised Unemployment.
b. Unhygienic slums → Disease → wages lost, savings lost, school days lost.
2. Lack of family planning → ⏫ birth-rate → child labour → education. अ�धक ब�े पैदा करना, बाल
मजदू री
3. Large family → insufficient food → malnutrition → insufficient mental & physical capacity to
pursue better economic opportunities. कु पोषण के चलते शारी�रक और मान�सक �वकास नहीं, पढ़ाई म� �ान नहीं
4. Unprofitable nature of agriculture due to vagaries of monsoon & structural bottlenecks in the
APMC Market. िकसानों का मं डी म� शोषण
5. Low asset base: Most of the rural households don’t possess land, milch animals, farm machinery
or sufficient bank deposits in the first place- it reduces their capacity to generate self-
employment / business opportunities. Vicious trap of low savings → low investment → low
income. Such poor parents are unable to provide better education to children → 2nd
generation is also deprived of economic opportunities. सं प�� कम है, इस�लए �पता अपने भ�व� क� पीिढ़यों के
�लए अ�� �श�ा म� �नवेश नहीं कर सकता
6. Lack of financial planning: wasting money in Tobacco, Liquor, Social Rituals, Pilgrimages.
7. Lack of financial inclusion, debt trap by informal money lenders. सा�कारों का �ाज चक्र
8. Majority of labour engaged in unorganized / informal sector: minimum wages are not enforced.
9. Insurance density is poor. Most workers lacking social security → Once the breadwinner dies /
permanently handicapped → family pushed into poverty. बीमा और सामा�जक सुर�ा का अभाव
10. Social barriers faced by SC / ST / Minorities in advancing economically in rural area.
11. Female Labour Force Participation Rate is low. Maternity Benefits Act, Equal Wages Act not
strongly enforced. Gender inequality in education & nutrition → females’ energy and talent
mostly confined to unpaid domestic work → family unable to come out of poverty. (श्रमबल म�
मिहला सहभा�गता दर कम है, इस�लए वह अपने प�रवार के �लए �ादा धन कमा नहीं सकती)
12. Misgovernance, Terrorism, Secessionism in the Special Category States → infrastructure,
industries and tourism remained underdeveloped. In mineral rich states economic growth & per
capita income is high (due mining activities) but Left Wing Extremism, Mining Mafia, Weak
governance → Poor infrastructure → lack of economic opportunities for poor. कु शासन आतं कवाद
उग्रवाद के चलते कु छ �ेत्र �पछड़े अ�वक�सत रहे है, इस�लए वहाँ के लोग गरीब

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13. Corruption / leakages in the poverty removal programs. Failure of the Finance Commission &
Planning machinery to hold the state governments accountable. भ्र�ाचार और स��डी का �रसाव
14. Economic survey 2016 observed that after independence
a. USA did not give Universal Voting Rights to all people immediately (women and blacks
were excluded initially) → USA pursued pro-industrialist policies → growth.
b. China, Indonesia, S.Korea: Democracy / Voting rights ‘on paper only’ → They pursued
pro-industrial policies without trying to appease all linguistic, religious or caste groups
→ growth.
c. India: voting rights to all immediately after independence → ….
15. While both India & China adopted ‘Five Year Plans’ system but China began LPG-like reforms
in 80s itself so its economy grew very fast. Whereas India kept industrialists under license, quota,
inspector raj; archaic factory laws & labour laws without ease of doing business. → More Jobs
could not be created in mfg. sector.
64.1.1 🤲🤲🤲🤲🤲🤲Vicious Circle of Poverty (गरीबी का दुष्चक्र/�वषचक्र)
⇒ Poor person doesn’t have enough money to buy good food / education → his productivity
remains low → he doesn’t have enough money.
⇒ low level of development in Less Developed Countries (LDCs: अ� �वक�सत देश) is also explained
through the vicious circle on supply and demand side:
Supply Side ( आपू�त) Demand Side (माँग)
Poor person has low income → low savings Low income → low demand by poor families (of
→ low investment / capital → he can’t start mobiles, TV, fridge) → low capital investment by
or expand business to increase his income companies / factories due to lack of customers →
→ more poverty less new jobs → more poverty
64.1.2 🤲🤲🏆🏆Economics Nobel 2019 for Global Poverty Alleviation

⇒ Originally, Nobel Prizes were given for 1) Physics, 2) Chemistry, 3) Physiology or Medicine, 4)
Literature, and 5) Peace. From the fund created by Swedish inventor Alfred Nobel.
⇒ 1968-69: Bank of Sweden started giving “Sveriges Riksbank Prize in Economic Sciences”. So,
technically not a Nobel Prize, but it’s nicknamed as “Nobel for Economics”
⇒ 2019: Abhijit Banerjee (born in Mumbai, teaches at Massachusetts Institute of Technology, USA)
& his wife Esther Duflo (France) and Michael Kremer (USA) received for “experimental
approach to alleviating global poverty." ("वै��क गरीबी को कम करने के �लए प्रयोगा�क ���कोण।")
⇒ They’ll receive 9 million Swedish krona, to be shared equally between the Laureates.
2019’s winner suggested we shd divide poverty issue into smaller & manageable questions such as:
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⇒ “How can we improve educational outcomes? → extra classes for the weak students
⇒ ”How can we improve child health?” → � vaccination→ give foodgrains to parents if they
bring child for vaccination.

Economics Nobels in Research Topic Winners (no need to loose sleep if u can’t
last.2 years remember their names.)
2021 Labour economics David Card, Joshua D Angrist and Guido W
Imbens
2022 Banks' role in Ben S. Bernanke, Douglas W. Diamond, Philip
financial crises H. Dybvig

64.2 🤲🤲💸💸📏📏 POVERTY → MEASUREMENT / ESTIMATION (गरीबी का �नधार्रण)

64.2.1 🤲🤲💸💸📏📏 Videshi methods → World Bank: ~21% Indian juntaa is poor
⇒ World Bank’s International Poverty Line (IPL) stands at person living daily on US$1.90 (PPP
exchange rate).
⇒ So, a person who spends less than an absolute amount ‘US$1.90’ a day is considered ‘below IPL
line’ → classified as poor.
⇒ So, spending $1.90 is non-poor while $1.89 is poor. This is an example of “Absolute Poverty” (
�नरपे� �नधर्नता ) measured with an artificial line. The result is usually expressed in Poverty Head
Count Ratio (HCR) कु ल �ानीय ���यों का अनुपात i.e. proportion of a population that lives, below
this poverty line.
⇒ 2011: India’s 21.2% population classified as poor by World Bank’s method. In absolute figures,
India was the home to largest number of people below IPL. But, 2018 Nigeria took over India.
⇒ 📊📊World bank aims to eliminate extreme poverty by 2030. In this context, they published
reports titled ‘ Poverty and Shared Prosperity ’ in 2016, 2018,2020
⇒ 📊📊😷😷World Bank’s ‘ Poverty and Shared Prosperity-2020 report noted: Coronavirus may push
150 million into poverty by 2021. Also criticized India for that lack of latest data on poverty, But
appreciated Mumbai Dharavi slum community support to poor families during the Corona.
Side note: Relative Poverty (सापे� �नधर्नता): Households are arranged in ascending order of annual
income → Households earning less than x% of median income is classified as poor. (e.g. UK uses
x=60%) Thus it measures poverty ‘relative’ or ‘compared‘ to how much others are earning.

64.2.2 🤲🤲💸💸📏📏 Videshi methods → UNDP-MPI: ~16% Indian juntaa is poor

- As per World bank definition, if a person is spending $1.91 per day, he is NOT Poor. Although,
he would be suffering from many deprivations.

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- Multidimensional Poverty Index (MPI ब�आयामी �नधर्नता सूची) looks beyond income to understand
how people experience poverty in multiple ways.
- prepared by United Nations Development Programme (UNDP) and the Oxford Poverty and
Human Development Initiative (OPHI)
- Household survey with set of 10 questions spread across 3 dimensions viz. health, education and
standard of living. E.g.
- A) Health → 1) nutrition, 2) child mortality
- B) Education → 3) years of schooling 4) school attendance
- C) Living standards → 5) cooking fuel (dung, wood, charcoal or coal) 6) sanitation 7)
drinking water 8) electricity, 9) housing 10) household assets (e.g. radio, TV, telephone,
computer, animal cart, bicycle, motorbike, refrigerator, car or truck?).
- These 10 Qs are assigned different weights add data → UNDP arrives at MPI Head count ratio.
Year 2005-06 2019-21 (Report published in 2022-Oct)
MPI: % of poor in India 55% 16.4%
- India moved 41.5 crore people out of the MPI poverty during 2005-2021 भारत करोड़ों लोगों को गरीबी से
बाहर लाने म� सफल रहा है.
- largest number of poor people in the world: #1 India (22.8cr) #2: Nigeria.
- globally, 19.1% (=120 crore) people live in MPI poverty

🔠🔠❓MCQ. The Multi-dimensional Poverty Index of UNDP covers following?( UPSC-Pre-2012)

1. Deprivation of education, health, assets and services at household level
2. Purchasing power parity at national level
3. Extent of budget deficit and GDP growth rate at national level
Codes: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

64.3 🤲🤲💸💸📏📏 VIDESHI METHODS → INEQUALITY (असमानता )

Gini − Italian statistician Corrado Gini(1912)’s a formula for measuring
Coefficient inequality. Its associated graph is called ‘Lorenz Curve’
− 0 or 0% = perfect equality; 1 or 100% = perfect inequality.
− World Bank, Credit Suisse, and other international organizations use it to
measure inequality.
− India Gini coefficient degraded from 81% (2013) to 85% (2018), which
proves inequalities increasing in India.
Global Wealth − By Credit Suisse, an Investment banking company of Switzerland.
Report − Inequality is high in India. richest 10% of Indians own more than 70% of
the country’s wealth.
− More than 70% of Indians have personal wealth below $10,000.
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 Inclusive − Prepared every two years (biennial ) by UN Environment, to measure
Wealth Report sustainability of economy and wellbeing of their people. Last report was
समावेशी धन �रपोटर् prepared in 2018.
Global Social ⇒ By World Economic Forum (WEF) from 2019 onwards
Mobility Report ⇒ IF children can experience a better life than their parents, then the country
वै��क सामा�जक has +ve social mobility.
ग�तशीलता �रपोटर् ⇒ It measures– access to health, education, technology access, work
opportunities, social protection etc.
⇒ 2020: report launched for the first time. Ranking #1 Denmark> #2 Norway
> #3 Finland>...#76 India>....#82: Ivory Coast

64.3.1 🤲🤲🤲🤲🤲🤲World Inequality Report 2022:

by World Inequality Lab (Paris based research org), with economists Thomas Piketty etc.

⇒ 1) World’s richest 10 per cent own around 60-80 per cent of wealth and the poorest half
systematically own less than 5 per cent of wealth (�व� असमानता �रपोटर् म� पाया गया िक पूरी दु�नया क� 60-80
प्र�तशत क� सं प��- के वल 10% अमीरों के क़�े म� ह� जबिक सबसे ग़रीब लोगों के पास पूरी दु�नया क� 5% सं प�� भी नहीं है)
⇒ 2Women today get just one-third of all labour income in the world.
⇒ Suggested more tax on rich. (अमीरों पर �ादा कर लगाया जाए ऐसी �सफ़ा�रश)
⇒ India ‘very unequal’: The bottom 50% population earned less than Rs 55,000 per year, while the
top 10% Indian population earned over Rs 11 lakhs per year.
FAQ: “this data is not matching by the NSO data given in Pillar4C Handout. Ans. This data is
collected by a non-govt organisation based in foreign nation!

64.3.2 🤲🤲💸💸📏📏 Oxfam Inequality Index वै��क असमानता सूचकांक

⇒ UK’s NGO Oxfam International’s ‘Commitment to Reducing Inequality (CRI) Index’
⇒ It measures Govt’s ‘seriousness’ in reducing inequality by 3 dimensions 1) Govt’s spending on
social sector 2) progressive taxation 3) labour rights.
⇒ 2018 Ranking: #1: Denmark, #147: India, #157: Nigeria (lowest)
⇒ 2020-Jan: Oxfam presented a report in WEF-Davos summit that 1% Indian hold four times more
wealth than 70% of poor and it would take a female domestic worker in India 22,277 years to
earn what a top CEO of a technology company makes in one year.
⇒ 2021-Jan: Report Theme ‘The Inequality Virus’: Rich Indians’ wealth �by 35% during
lockdown = ₹13 trillion- This amount is large enough to give cheque of ₹94,000 to each poor
person / run Health ministry for 10 years/MGNREGA scheme for 10 years. E-learning business
for exponential growth Whereas poorest 20% families mein only 9% have internet. Coronavirus
spread higher in poor families because live in congested unhygienic place, common
toilet/water/spitting points.

64.3.3 🙇🙇🙇♀Period Poverty (मा�सक धमर् के चलते गरीबी)

⇒ It's a concept about how social taboo/hygiene issues surrounding menstruation period prevent

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 women from rising to their true potential in education and employment. मा�सक-धमर् के साथ जुड़े �ए
सामा�जक-�नषेध और ��ता क� सम�ाओ के चलते मिहला �श�ा-रोजगार म� उनक� वा��वक �मता को हाँसील नहीं कर पाती
अत: पु�षों क� तुलना मे 'गरीब' रह जाती है।
⇒ Menstruating girls miss school because they don’t have access to sanitary products / separate
toilets to change pads at school.
⇒ Chhaupadi = an ancient practice in rural Nepal. Menstruating women forced to live in separate
mud huts → death due to infection / illness.
⇒ 2020: Scotland- first country to issue a bill/law for providing free sanitary products to women, to
end period poverty. India has 0% GST on Sanitary napkins, UK also abolished sales tax on it.
⇒ 2021: “Udaan” free sanitary napkin distribution scheme of Rajasthan for all females.

64.4 🤲🤲💸💸📏📏 DESHI METHODS: (BPL: गरीबी रेखा से नीचे)

Alagh Committee Adult daily calories intake: 2100 (Urban), 2400 (Rural). If a person is not
(1979) getting this much calorie he is Below Poverty Line (BPL)
Lakdawalla:1993 Calories Intake + Clothing + Shelter
Suresh Tendulkar Setup by Planning Commission, this Committee defined poverty line at
committee monthly per capita expenditure Rural@₹816 per month (approx. ₹27 per
(2005-09) day), Urban@₹1000 (approx. ₹33 per day).
यिद आप शहर म� रहते ह� - Then, State specific poverty line are updated using the CPI inflation
और एक महीने म� हज़ार figures, as a result, official poverty line ₹ amounts for each states may
�पया भी ख़चर् नहीं कर पाते differ due to varying price level. हर रा� के �लए ये �ा�ा थोड़ी अलग हो सकती है
तो आप ग़रीबी रेखा के नीचे - As per Tendulkar method, % of Indians living below poverty line are:
है 21.9% (All India), 25.7% (Rural India), 13.7% (Urban area) in 2011-12.
- NITI & Modi Govt use this figure in all official documents.
- State/UT that have higher % poverty than National 21.9%: Uttar
Pradesh < Madhya Pradesh < Assam < Odisha < Bihar < Arunachal
Pradesh < Manipur < Jharkhand < Dadra & Nagar Haveli <
Chhattisgarh (most poor)
C. Rangarajan Setup by Planning Commission, this Committee suggested poverty line
(2012-14) @monthly expenditure for family of five: ₹ 4860 (Rural), ₹ 7035 (Urban).
🔠🔠❓MCQ. In a given year in India, official poverty lines are higher in some states than in other because (Pre-2019)
a) Poverty rates vary from state to state b) Price levels vary from state to state
c) Gross state product varies from state to state d) Quality of public distribution varies from state to state

64.4.1 🤲🤲💸💸📏📏 DESHI methods → SECC-2011

Socio Economic Caste Census (साम�जक आ�थक एवं जा�तगत जनगणना)
− SECC is different from poverty lines because SECC’s primary objective is not to ‘measure’
poverty but rather ‘eligibility’ of a family for Govt schemes. ग़रीबी नहीं, सरकारी योजनाओं म� आपक� पात्रता
देखी जा रही है
− SECC is different from Population Census (जनगणना )because under Population Census Act, 1948
Govt must keep individual's personal information confidential. But SECC is done outside of it, so
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 personal information can be uploaded online (e.g. Mr.X is given ₹ ₹ for PM Awas Yojana because
he was found eligible in SECC)
− SECC 2011 was a paperless census done by electronic devices.
− Nodal? Rural Development Ministry, Below them→
o Rural area → Rural Development Ministry
o Urban area → Urban Affairs Ministry
o Caste Census component → Registrar General & Census Commissioner, India (Home
Ministry)
SECC-2011 classified (rural) Households were classified into three categories:
Automatically excluded 7 Deprivation Indicators Automatically included in a
अभाव के 7 सं के त SCHEME if
1) Motorized vehicle/ 1) Landless households earning 1) Households without
fishing boat. from manual labour? shelter
2) Kisan credit card with 2) One room house with kuccha 2) Destitute / living on alms
limit of over Rs. walls & roof? (�नरा�श्रत / �भ�ु)
50,000/-. 3) No adult (18-59 aged) member 3) Manual scavengers
3) If govt employee / in household? 4) Primitive Tribal Groups
owner of non-agro 4) No literate adult in household? (आिदम जनजातीय समूह)
enterprises / earning 5) Female headed household with 5) Legally released bonded
>10k/per month no adult male member? labourers (बं धुआ मजदू र )
4) Paying income tax 6) Households with only PH
/Professional tax. members?
5) 3 or more rooms with 7) SC/ST Households?
pucca walls and roof.
6) Owns a
refrigerator/Owns
landline phone.
7) Owns more than “x”
acre of land
7 cr. (~39%) out of 18 cr 11 cr. (~43%) rural households 16 lakh (~0.9%) rural
rural households here here. households here
If a govt scheme is using SECC-2011 data then
 Left column-walla: automatically excluded (�त: बाहर करना) from scheme benefit.
 Right column-walla: automatically included.
 Middle column-walla: included based on how deprived they are. So household with more ‘yes
tickmarks’ will get first preference in allotment of PM Awas Yojana, PM Ujjwala cylinder
connection etc. over a less deprived households (वं �चत प�रवार).
− PM Jan Arogya Yojana (₹ 5lakh annual health insurance) also uses SECC data to cover 8 cr rural
+ 2 cr urban = 10 cr families.

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− During SECC (Rural) survey → Households were asked questions → results displayed at Gram
Sabha → others can ‘counter’ it (like Mr. X is not a destitute but has mercedes car!) →
reverification.
− SECC (Urban) methodology slightly different but we need not PHD. Further, Govt has not
released the ‘Caste census’ portion of this SECC (fearing demands for inclusion / exclusion of a
caste based on above data)
64.4.2 🤲🤲💸💸📏📏 deshi methods → NITI-MPI: ~25% Indian juntaa is poor
- 2021-Nov: NITI Aayog prepared India’s own first ever MPI Index.
- This Multi-dimensional Poverty Index (MPI)’s calculation methodology is inspired by MPI-
index of UN Development Programme (UNDP)+Oxford Poverty and Human Development
Initiative (OPHI)
- NITI has collected data indirectly through National family health survey (NHFS-4: 2015-16)
- NITI’s MPI Index has 3-Dimensions (– health, education, and standard of living): Each given
equal weight). Total 12 Questions: nutrition, school attendance, years of schooling, drinking
water, sanitation, housing, bank accounts etc.

Figure 1: % total population of India who are multidimensionally poor and deprived in each indicator

- Highest Poverty: 1) Bihar (52% Population is poor) 2) Jharkhand (42% Population), 3) Uttar Pradesh
(38% Population), 4) MP (36%) 5) Meghalaya (32%)
- Lowest Poverty? Kerala (0.71%), Goa (3.76%), Sikkim (3.82%), Tamil Nadu (4.89%) and Punjab (5.59%)
(नी�त आयोग का ब� आयामी ग़रीबी-�नधर्नता सूचकांक। �ा� �श�ा और जीवन �र के तीन आयामों पर कु ल �मलाकर 12 अलग अलग प्र�ों के
आधार पर लोगों क� गरीबों को नापा जाए इसम� �बहार झारखं ड और उ�र प्रदेश म� सबसे �ादा प्र�तशत लोग गरीब/�नधर्न है)

64.4.3 🤲🤲💸💸📏📏 deshi methods → 📊📊📊📊📊📊📊📊 Bare Necessities Index (BNI) By 📙📙📙📙ES21
⇒ Nobel Winner Economist Dr. Amartya Sen defines poverty as a failure to achieve certain
minimum basic needs. Therefore, access to “the Bare Necessities” such as Food, Housing,
Water, Sanitation, Electricity, Clean Cooking Fuel are a Sine-Qua-Non / Prerequisite for
poverty alleviation and a decent life. [अम�र् सेन के िहसाब से ग़रीबी का मतलब है �ूनतम ज़�रतों या �मताओं को
हा�सल करने म� �वफलता. अत: ग़रीबी उ�ूलन के �लए भोजन, आवास, पेयजल, ��ता, �बजली इ�ािद ज़�री/ �ूनतम
आव�कता क� चीजे/सु�वधाए लोगो को �मले यह अ�नवायर् है]
⇒ So, 📙📙📙📙ES21Vol1Ch10 prepared a Bare Necessities Index to quantify this approach. (उ�
सोच/ ���कोण के मात्रा�क �प से मू�ांकन के �लए आ�थक सव��ण ने बनाया है ‘ज़�री आव�कता / बु�नयादी आव�कता
(Batch: PCB7) Mrunal’s Economy Pillar#6C HRD: Poverty , Inequality, MGNREGA & Other Schemes → Page 1118
 सूचकांक’)
⇒ With 5 Dimensions viz., water, sanitation, housing, micro-environment, and other facilities and
26 indicators.
5 26 indicators (सं के तक). [Note: following table contains only
dimensions[आयाम] notable/imp/exam-worthy indicators, & NOT all 26 indicators.]
💦💦1) Water 📊📊Indicators: (सं के तक)
पानी ⇒ Source of Water? tanker-truck/ river, dam, stream etc [आपके घर म� पेय जल
कै से हा�सल करते ह� ],
⇒ Distance from water source [आपका घर पेयजल स्रोत से िकतना दू र है],
⇒ Method of collection: through tap, carrying pot over head etc. [पानी कै से
जमा करते है? नल से, सर पे मटके पे लाते है?]
🔍🔍Implications: [प्रभाव /असर]
If water source away from home→ Water hauling→ daughters' education
suffers, since they will have to fetch water. [यिद पेय जल का स्रोत घर से ब�त दू र होगा -
लड़िकयों क� �श�ा म� हा�न, �ोंिक उ�� रोज़ पानी भरने के �लए दू र दू र तक चलते जाना होगा]
📯📯Related Scheme: Jal Jeevan Mission for Piped water supply
🚽🚽2) Sanitation 📊📊Indicators: nature of toilet, whether exclusive use for household /
��ता community toilet? etc [शौचालय का प्रकार]
🔍🔍Implications of Open Defecation: [खुले म� शौच का मानव जीवन पर प्रभाव /असर]
⇒ Infection, Disease, IMR/MMR [खुले म� शौच से बीमा�रयां / मृ�ु]
⇒ safety and modesty, ⏬School attendance of girls, women
Unconsciously ⏬Intake of food and water so as to avoid going in the
daytime → Malnutrition. [सुर�ा और ग�रमा को �ान म� रखते �ए िदन के समय खुले म�
शौच म� न जाना पड़े इस�लए लड़िकयाँ �ू ल नहीं जाती, मिहलाएँ भोजन और पानी कम लेती है �जसे
कु पोषण क� सम�ा बढ़ती है]
📯📯Related Scheme: Swachh Bharat Mission
🏠🏠3) Housing 📊📊Indicators: House condition, Nature of wall and roof etc. [मकान और छत क�
मकान आवास ���त]
🔍🔍Implications: Dilatated House = vulnerability to Crime, Disaster,
Diseases. [जजर्�रत मकान म� अपराध, आपदा, और बीमा�रयों का प्रभाव/भे�ता �ादा]
📯📯Related Scheme: Pradhan Mantri Aawas Yojana
🦟🦟4) Micro- 📊📊Indicators:
Environment ⇒ Drainage system of the household [गटर �व�ा का प्रकार]
सू� पयार्वरण ⇒ flies/mosquitoes problem during the last 365 days. Did govt authorities
came to tackle that problem? [म�र क� सम�ा के �लए �ा �पछले एक वषर् म� सरकार
मदद करने आयी थी?]
🔍🔍Implications: Vulnerability to Diarrhea jaundice malaria etc. [उ� सु�वधाएँ
नहीं होंगी तो बीमा�रयों का प्रकोप �ादा]

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 5 26 indicators (सं के तक). [Note: following table contains only
dimensions[आयाम] notable/imp/exam-worthy indicators, & NOT all 26 indicators.]
🍜🍜5) Other 📊📊Indicators:
facilities ⇒ 🔌🔌Electricity (📯📯Related Scheme: Saubhagya Yojana)
अ� सु�वधाएँ ⇒ 🍜🍜Cooking fuel: LPG, firewood, dung cake (📯📯Related Scheme:
Pradhan Mantri Ujjwala Yojana) [रसोई म� इ�ेमाल होने वाले �धन का प्रकार]
⇒ 🍜🍜Kitchen type [रसोईघर का प्रकार], Bathroom [�ानगृह का प्रकार]
🔍🔍Implications:
⇒ Wood / charcoal / dung / kerosene → Indoor air pollution → Mother
and child health ⏬। लकड़ी /गोबर = घर म� वायु प्रदू षण के चलते �ा� को नुक़सान
⇒ Firewood / dung collection: 1) Girls / daughters' education suffers in this
labour. 2) Deforestation. �धन के �लए लकड़ी बटोरने के च�र म� बेिटयों क� �श�ा को
हा�न , जं गलों क� कटाई से पयार्वरण को नुक़सान
⇒ Electricity =Mobile internet television radio usage⏫: Education of
child, Democratic awareness of adults. �बजली उपल� होगी तो मोबाइल इं टरनेट
टेली�वज़न का प्रयोग बढ़े, �जससे ब�ों क� �श�ा तथा वय� म� देश दु�नया के समाचार और
चुनावी/लोकतां�त्रक जागृ�त बढ़ती है
⇒ Based on availability of above facilities → Arithmetic Mean (Average) → Bare Necessities
Index score will be computed → score range from 0 to 1. (उ� सु�वधाओं क� उपल�ता के िहसाब से औसत
�नकाला जाएगा और एक सूचकांक बनेगा)
⇒ Higher the score/value of index, better is the access to the bare necessities (सूचकांक म� �जतने �ादा
मा�र् �मल�गे वो अ�� बात होगी)
⇒ green, yellow and red, colors will be used in the maps show the level of a State in providing
access to bare necessities to its households. (भारत के नक़्शे पर �व�भ� रंगों म� इसे अंिकत िकया जाएगा)
⇒ Using above data, 📙📙📙📙ES21also created sub-indices such as Drinking Water Accessibility
Index, Sanitation Index etc [उ� डेटा क� मदद से आ�थक सव��ण ने कु छ और भी घटक-सूचकांक बना िदए जैसे पेयजल
उपल�ता सूचकांक, ��ता सूचकांक इ�ािद]

64.4.4 📊📊📊📊📊📊📊📊 BNI index Findings (सूचकांक से �ा त� सामने आए?)

😍😍Highest progress Kerala, Punjab, Haryana, Gujarat, Uttarakhand, Delhi, Goa, Mizoram,Sikkim
😢😢Lowest progress Odisha, Jharkhand, West Bengal and Tripura (इन रा�ों म� प्रग�त अ�� नहीं)
Area wise Score is better for urban areas than rural areas (गाँव के मुक़ाबले शहरों म� ज़�री-
आव�कताएं अ�धक मात्रा म� उपल�)
⇒ Economic Survey appreciated schemes for ⏫ bare necessities such as Swachh Bharat Mission
(SBM), National Rural Drinking Water Programme (NRDWP), Pradhan Mantri Awaas Yojana
(PMAY), Saubhagya, and Ujjwala Yojana. [ज़�री आव�कता उपल� करवाने म� मोदी सरकार क� �व�वध योजनाओं
क� प्रशं सा क� गई- आ�थक सव��ण द्वारा]
⇒ BNI has ⏫ for all the states from 2018 (Modi-raj) compared to 2012 (Congress Raj).
Consequently, from 2012 to 2018’s National Family Health Surveys show ⏬in infant mortality,

(Batch: PCB7) Mrunal’s Economy Pillar#6C HRD: Poverty , Inequality, MGNREGA & Other Schemes → Page 1120
 health outcomes improved etc. Here 📙📙📙📙ES21’s tone is similar to Thalinomics (Ref Pillar4C).
कु ल �मलाकर 2012 क� तुलना मे 2018 म� ज़�री आव�कता सूचकांक म� बढ़ोतरी �ई. जो दशार्ती है िक कांग्रेस सरकार क� अपे�ा
मोदी सरकार ने बेहतर काम िकया. इससे पहले महँ गाई वाले थालीनो�म� मुद्दे म� भी आ�थक सव��ण कु छ ऐसी ही बात� कर चुका है.

64.4.5 📊📊📊📊📊📊📊📊 ✍BNI index Analysis: Conclusion / Significance? [�न�षर् /मह�]

🤩🤩Tracking BNI will help in following ways [इस सूचकांक पे �नगरानी रखने से �न� फ़ायदे होंगे]

⇒ SDG monitoring. E.g. Goal 6 focuses on water and sanitation, Goal 7 electricity and clean
cooking fuel. (सतत् �वकास ल�ों म� भारत क� प्रग�त पर �नगरानी म� मदद)
⇒ Schemes implementation can be improved with real time monitoring, geo-tagging of assets,
social audit, direct benefit transfers wherever possible. (इस सूचकांक द्वारा �मले आंकड़ों को देखते �ए �व�भ�
योजनाओं को �ादा प्रभावी �प से, �ादा सतकर् ता से लागू िकया जाए।)
⇒ Improved the Transparency, Accountability, Good-Governance. (पारद�शता, जवाबदेहीता और सुशासन म�
मदद होगी)

64.5 📙📙📙📙🤵🤵⚡👷👷 ⏫ECONOMIC GROWTH TO ⏬POVERTY SAYS 📙📙📙📙ES21

⇒ Inequality= degree of gap in the distribution of assets, income or consumption among people. [
असमानता यानी क� ���यों क� सं प��, आमदनी तथा उपभोग म� िकतनी खाई/ �वषमता है]
⇒ Poverty = Very low assets, income, consumption. It could be measured in relative terms or in
absolute terms. ��ES21 argues that our focus should be to remove Absolute poverty. [ग़रीबी
यानी सं प�� आमदनी उपभोग क� कमी। ऐसे ही ग़रीबी सापे� या �नरपे� हो सकती है। आ�थक सव��ण �नरपे� ग़रीबी हटाने क�
वकालत करता है]
⇒ Critics argue that capitalism, rapid economic growth increases inequality- as evident in USA-
IT/Tech companies’ CEOs earning million$ while many young Americans forced to do two jobs
just to pay the home loan/education loans. Etc. [तेज आ�थक वृ�द्ध से असमानता बढ़ती है. अमरीका म� एक तरफ़
कं पनी के CEO मोटी तन�ाह पाते ह�, जबिक कई आम नौजवान अपने क़ज़र् चुकाने के �लए दो अलग अलग नौक�रयां करने को
मजबूर।]
Thus, there is an inverse relationship between economic growth and equality.

However, 📙📙📙📙ES21Vol1ch4: argues that:

⇒ Income Redistribution = taxing the rich→ using the money for poverty welfare. [अमीरों के कराधान
क� रक़म से ग़रीब क�ाण योजनाएं चलायी जाए- तो आय का पुन�वतरण होता है ]
⇒ � GDP growth→ more rich people→ � Tax collection→ � more income redistribution
possible. In other words, if size of GDP pie chart grows bigger, then more people will be lifted out
of poverty. [आ�थक वृ�द्ध से अमीरों क� सं �ा बढ़ेगी तो कराधान क� आमदनी बढ़ेगी= �जससे आय का �ादा पुन�वतरण सं भव]
⇒ However, � GDP growth = � inequality = gap between the rich & poor may increase e.g.
poor person’s income may � by 10% while rich people’s income may � by 200%. आ�थक वृ�द्ध से
आय क� असमानता तो बढ़ेगी.
⇒ But, we’ve to � GDP growth to remove absolute poverty / BPL e.g. not able to spend even
Rs.1000 per month in city area. िक�ु िफर भी हमने आ�थक वृ�द्ध को बनाना है तािक �नरपे� �प से ग़रीबी को कम िकया

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 जा सके .
⇒ American Political philosopher John Rawls: Govt should prefer a distribution system which
maximizes the income of the poorest and provides basic liberties. So, ��ES21 uses his
argument to justify that even if economic growth increases inequality still, it helps poor people
earn more money so economic growth is desirable. अमरीक� राजनै�तक �चंतक जॉन रो� के मुता�बक़- सरकार ने
ऐसी पुन�वतरण �व�ा प्रणाली बनानी चािहए �जसम� अ� प्रणा�लयों क� तुलना म� गरीबो को �ादा रक़म तथा बु�नयादी �तं त्रता
�मल रही हो. इस तकर् के आधार पर आ�थक सव��ण सुझाव देता है क� आ�थक वृ�द्ध को तेज़ी से बढ़ाने क� को�शश करनी चािहए
�ोंिक भले तेज आ�थक वृ�द्ध से आय क� असमानता बढ़ेगी िक�ु िफर भी ग़रीब के हाथ म� पहले से �ादा पैसा आएगा.
��ES21 then wrote lengthy paragraphs about Maxmin principle, game theory, Feldstein's
⇒ [�
experiment, permanent income hypothesis- but that much academic depth gives poor cost:
benefit from exam point of view. so we will not invest more time]

64.5.1 📙📙📙📙🤵🤵⚡👷👷 Trickle Down in China [आ�थक वृ�द्ध का नीचे क� ओर टपकना]

⇒ Trickle Down= Economic growth→ � when rich people’s wealth �→ they will do more
investment shopping→ � jobs, income for workers. जब अमीरों क� सं प�� बढ़ेगी तो अमीर �ादा �नवेश और
ख़रीदारी कर�गे �जससे गरीबों को रोज़गार और अ�त�र� आमदनी �मलेगी।
⇒ While some critics argue that “trickle down” does not work very efficiently in real life because
rich person continues to underpay the poor, even if rich person’s own income continues to
increase. Etc. therefore economic growth does not trickle down to the poor people. हालाँिक कु छ
आलोचकों का मानना है िक इस तरह से आ�थक वृ�द्ध गरीबों क� ओर बहती/टपकती नहीं, �ोंिक चाहे आ�मर पहले से �ादा अमीर हो
जाए, वह ग़रीब को पहले से �ादा तन�ाह नहीं देता।
⇒ However, World Bank research found China’s economic growth have really trickled down
because Chinese government initiated following reforms 1) compulsory education till ninth

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 standard 2) Focus on rural healthcare 3) Focused on minimum wages & pension. हालाँिक �व� ब�क क�
चीनी आ�थक वृ�द्ध पर सं शोधन से मालूम �आ िक आ�थक वृ�द्ध ग़रीबो क� ओर बह सकती है, जब चीन क� तरह �ू ली �श�ा को
अ�नवायर् िकया जाए, ग्रामीण �ा�, �ूनतम वेतन और प�शन पर ज़ोर िदया जाए।

64.5.2 📙📙📙📙🤵🤵⚡👷👷 Moderate Inequality =NOT BAD! Says 📔📔📔📔ES21

⇒ ��ES20 had cited Tamil Saint Thiruvalluvar that wealth creation is not a bad thing, as long
as it is created through ethical means. पैसा कमाना ग़लत बात नहीं है जब तक नै�तक �प से कमाया हो।
⇒ ��ES21 cited some new American surveys showing-
⇒ 1) Americans wish that a CEO should earn $7 for every $1 earned by a factory worker. CEO
deserves this much more salary because of his qualification and talent. But if the income gap is
bigger than this level= disliked. कं पनी के CEO को मज़दू र क� तुलना म� सात गुना �ादा तन�ाह �मले उसे अमरीक�
लोग ग़लत नहीं मानते �ोंिक CEO को उसक� प्र�तभा मेहनत वृ�द्ध के िहसाब से �ादा पैसा �मलना चािहए। तो यिद सात गुना से
�ादा तन�ाह �मल रही हो तो वे उस ���त/प्रणाली को नापसं द करते ह�।
⇒ 2) Americans wish that if rich people should have 3x times more wealth than poor. But if the
income gap is bigger than this level= disliked. अमीरों के पास गरीबों क� तुलना म� तीन गुना से �ादा सं प�� हो उस
���त/प्रणाली को अमे�रक� नापसं द करते ह�।
⇒ 4) self-interest: people will tolerate, support or reject inequality depending on what favours their
own position. ��� अपने �-िहत के देखते �ए, असमानता को बदार्� करेगा, समथर्न करेगा, अ�ीकार करेगा
⇒ 5) Thus, people do not want total equality in income. Moderate level of inequality is considered
“just/reasonable” because some people deserve to earn more money because of their hard work
and talent. यानी क� अमरीक� सव��ण से यह �ात होता है िक लोग सं पूणर् �प से आय म� समानता नहीं चाहते। आय म� म�म �प
क� असमानता �ायपूणर् औ�च� पूणर् है, �ोंिक वो कु छ लोगों को उनक� मेहनत/प�रश्रम के िहसाब से अ�त�र� पैसा �मलना चािहए।

64.5.3 📙📙📙📙🤵🤵⚡👷👷 Conclusion: Eco Growth⏫ → Poverty⏬

⇒ Economic growth has a far greater impact on removing poverty than on removing inequality.
आ�थक वृ�द्ध असमानता को कम करने क� तुलना म� गरीबी को �ादा कम करती है।
⇒ Considering India’s stage of development, India must continue to focus on economic growth to
lift the poor out of poverty. Because, Redistribution is only feasible in a developing economy if
the size of the economic pie grows। भारत क� वतर्मान �वकास को देखते �ए, सरकार ने आ�थक वृ�द्ध पर ज़ोर देना चािहए
तािक गरीबों को ग़रीबी से बाहर �नकाला जा सके । �ोंिक यिद सकल घरेलू उ�ाद क� थाली का आकार बढ़ेगा तभी उसम� से ग़रीबों के
िह�े म� पहले से मोटी रोटी आएगी।
64.6 🤲🤲💸💸 POVERTY → POVERTY REMOVAL (गरीबी उ�ूलन)
SDG Goal 1 aims to end poverty in all its forms everywhere. While it defines extreme poverty @$1.25
but nations are allowed to use their ‘national poverty line’ methods.
India’s SDG Goal1 Baseline Indicators in (brackets) Target-Goal-2030
Reduce atleast half of the BPL population. So, 21.9% population is BPL 10.95% population
(2011) then its half should be removed uplifted. → living below poverty
गरीबी रेखा से नीचे रहने वाले लोगों क� सं �ा को पहले से आधा करना line.
Number of homeless households per 10,000 households (presently ~11) 0 homeless
Households with min. 1 member with health insurance (~29% at present) 100% households
Improve Social Protection Schemes’ coverage: (सामा�जक सुर�ा योजना) 100% households

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 India’s SDG Goal1 Baseline Indicators in (brackets) Target-Goal-2030
- Number of eligible households receiving MNREGA jobs (85%)
- No. of eligible households receiving Maternity benefits (36%)
Over the years we have launched the following schemes for removal of poverty.
Note/Homework: Refer to Pillar1D for
 NSOAP (National Social Assistance Program- poor people given pension, insurance without
needing to pay premium/subscription fees),
 PMJDY (Jan Dhan Bank Account)

64.7 🤲🤲💸💸:📯📯📯📯 POVERTY REMOVAL → MGNREGA (2005)

⇒ 2005: Parliament enacted MGNREGA Act.
⇒ 2006: starts in 200 districts → 2008: launched in whole country as Mahatma Gandhi National
Rural Employment Guarantee Scheme(MGNREGS महा�ा गांधी रा��ीय ग्रामीण रोजगार गारं टी कायर्क्रम)
⇒ Boss? Ministry of Rural Development → Centrally sponsored scheme → core of the core
scheme→ not 100% funded by the Union. क� द्र द्वारा प्रायो�जत योजना → अ�त मह�पूणर् योजना
⇒ It promises to give minimum 100 days of unskilled manual labour to rural household whose
adult members volunteer for it. Households are eligible for unemployment allowances if
employment not been provided within 15 days of demand.
⇒ MNREGA labourers are used for creating durable assets as per local needs e.g. ponds, wells,
cattle sheds, granary, vermicompost plants, crematorium; renovation of Anganwadi centres,
school buildings, playground (तालाब, कु एं , अ� भं डार, वम� कं पो� �ांट, �शान। �ू ली इमारतों का पुन�द्धार,
खेलकू द के मैदान)
⇒ No contractors / machinery allowed. (ठे केदार और यं त्रों क� मनाई / इ�ेमाल व�जत है)
⇒ In any project, 60% of amt should go towards wages and 40% towards material. (�ादा िह�ा वेतन म�)
⇒ Union bears 100% wage cost and 75% of material cost.
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⇒ Wages are linked to Consumer Price Index (Agriculture labour:AL). [Although Modi thinking of
linking it with CPI-Rural] महंगाई के िहसाब से वेतन को बढ़ाया जाता है
⇒ Social audit by gram sabha at least once in every 6 months. ग्रामसभा सामा�जक ऑिडट/ िहसाब क� जांच करेगी
⇒ 👻👻😷😷Corona: Atma Nirbhar→ MGNREGA daily wages ⏫ from ₹182 to 202. So worker will
get Rs.20 extra than before. So, works for 100 days = ₹20x 100 days = ₹2000 more than before.

64.7.1 🤲🤲💸💸:📯📯📯📯 Poverty Removal → MGNREGA Problems/Corruption

⇒ 😥😥 Delayed payments. As per MGNREGA Act, workers should be paid within 15 days of
completion of work. But, in 2021, many villagers still awaiting payment for the works they did in
2020. Consequently poor people forced migrate to urban areas even if less wages available in
private sector- because they feel that in the private sector employer will at least pay on monthly
basis and they will not have to wait for the entire year! (मज़दू र का वेतन व� पर चुकाए नहीं जाता, �वल�
िकया जाता है। अत: मजबूरन वो मज़दू र शहरों म� चले जाते ह�, चाहे शहर म� तन�ाह कम �मलती हो, लेिकन �म से कम व� भी तो
�मल जाती है!)
⇒ 😥😥 Allegations that SC/ST workers payments released faster after than others. (perhaps because
govt doesn’t have enough money to pay everyone on time, so first priority given to SC/ST
workers) → inter-caste acrimony in village. (सरकार के पास पैसा कम है इस�लए एससी-एसटी मज़दू रों का
भुगतान/बकाया पैसा अ� जा�त के मज़दू रों से पहेले िकया जाता है। इसके चलते गाँव म� जा�त आधा�रत तनाव /कड़वाहट बढ़ रही)
⇒ 😥😥 As per MGNREGA Act: villager shd be given work within 15 days of demanding it, ELSE the
villager is entitled to an unemployment allowance. But not implemented in letter and spirit in
real life. (क़ानूनन यिद गाँव वाला काम क� माँग करे और 15 िदन के भीतर यिद उसे काम न िदया जाए, तो सरकार ने बेरोज़गारी
भ�ा देना होगा। लेिकन वा��वक �ज़दं गी म� इसका अनुपालन नहीं होता।)
⇒ 😰😰Corruption, substandard quality of work (भ्र�ाचार घिटया िक़� का �नमार्ण के )
⇒ 😰😰Sarpanch/Govt officials use contractors & bulldozers to build the road/phone etc then claim
that it was done manually by (fictitious) workers → funds siphoned (सरपं च और सरकारी अफ़सरों द्वारा
ठे केदार/मशीन क� मदद से रोड/तालाब बना देना और िफर काग़ज़ पे “फ़ज़�-मज़दू रों से काम करवाया” ऐसा बोल के सरकारी पैसा
ग़बन करना)
64.7.2 🤳🤳MGNREGA: Use of JAM-DBT
📔📔 📔📔ES19 noted that: During UPA/ManMohan-raj, MGNREGA suffered from widespread
corruption, political interference, leakage, and significant delay in wage payments.
- So, distressed villages/ farmers would migrate to cities / other states in search of work because
even if private parties gave them wages lower than MGNREGA (due to delays in MGNREGA).
- However, during Modi-raj, the use of technology helped fixing these problems
- 2015: Jan Dhan, Aadhaar and Mobile (JAM) Technology revolution started
- Aadhar linked Payments (ALP): Biometric data, ghost accounts removed.
- 2016: MoRD’s National Electronic Fund Management System (NeFMS) and NREGASoft →

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 Money transferred to State Govt’s bank account → NPCi’s Aadhar Enabled Payment System
(AEPS) → Direct Benefit Transfer (प्र�� ह�ांत�रत लाभ) to Beneficiary’s bank account.
- Since Wages directly into MGNREGA workers’ bank accounts → reducing scope for delays /
leakage / corruption in payment

64.7.3 🤳🤳MGNREGA: Use of Space technology (अंत�र� प्रौद्यो�गक� का उपयोग)

− Geo-tagging (भौ�ग�लक �च�ी लगाना) is a process of adding latitude and longitude to a photo/video.
In MNREGA, PM Awas Yojana, Gram Sadak Yojana etc.
− PM Modi introduced the concept of Geo-tagging for preventing ₹ ₹ siphoning in fraudulent /
non-existent assets / claiming ₹ ₹ multiple times on same asset.
− GeoMGNREGA portal for keeping track of assets through mobile based photo geo-tagging

64.7.4 🤳🤳MGNREGA: Use of Apps

− JanMnREGA: an asset tracking + feedback app for MGNREGA assets.
− Gram Samvaad Mobile App: Here citizens can find information about the money allotted to
their village under various rural development schemes, It has initiated debate at the gram
panchayat level why development is not happening despite the release of funds.
✍Thus, use of technology has ⏬ delays and scope for corruption in MGNREGA, thereby
increasing its efficacy in helping the rural people during the times of distress. Similar models need to
be adopted in all the other centrally sponsored schemes for ensuring India’s rapid economic growth
and human development. प्रौद्यो�गक� के उपयोग से योजना म� ढील और धांधली कम �ई, गरीबी �नवारण म� मदद, अतः अ� सभी
योजनाओं म� भी प्रौद्यो�गक� के उपयोग को बढ़ाया जाए

64.7.5 📔📔📔📔 MGNREGA: Future suggestion by ES19? (अ� सुझाव दी�जए)

 Big Data Analytics: We should do real time monitoring of demand for work under MGNREGA
@district level. If more work demand by villagers = proof of farm / rural distress. Then correlate
with weather data etc. then display flash alert on policymaker’s dashboard. So he can take
corrective actions. e.g. Timely release of crop insurance claims, distribution of more loans,
additional allocation of foodgrains in PDS Shops etc. िकतने मजदू र काम मांग रहे ह� उस डाटा पर अ�वरत
�नगरानी रखकर, अ�ग्रम कदम उठाने चािहए
 Deepening MGNREGA workers’ financial inclusion through microinsurance, micropensions,
microcredit schemes. �व�ीय समावेशन करना चािहए, सू�ा बीमा सू� ऋण क� �व�ा
 Upskilling the MGNREGA Workers: Convergence of MGNREGA with Deen Dayal Upadhyaya
Grameen Kaushalya Yojana (DDUGKY). So, they can eventually find gainful employment, and
don’t have to demand ‘unskilled’ MGNREGA work all the time. कौश� बढ़ाना चािहए. तािक भ�व� म� उस
मजदू र को वापस इस योजना का लाभ मांगने के �लए ना आना पड़े

🔠🔠❓MCQ. Who are eligible to benefit from the MGNREGA Act?(Prelims-2011)

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a) Adult members of only the scheduled caste and scheduled tribe households
b) Adult members of below poverty line (BPL) households
c) Adult members of house holds of all backward communities
d) Adult members of any household
🔠🔠❓MCQ. Which one of the following is not an objective of MGNREGA? (CDS-i-2020)
a) Providing up to 100 days of skilled labour in a financial year b) Creation of productive assets
c) Enhancing livelihood security d) Ensuring empowerment to women
64.7.6 👻👻(🧱🧱⛏:💸💸🤲🤲�)Atma-Nirbhar → PM Garib Kalyan Rojgar Abhiyaan (GKRA)
⇒ PM started this “GKRA” from Bihar's Telihar village in 2020-June.

⇒ 🧔🧔Boss? Rural Dev Ministry coordinates with other ministries e.g. roads, mines, Jal Shakti etc.
⇒ 🌐🌐Where? 6 states of Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Jharkhand and Odisha
to help the returnee migrants. चु�नंदा रा�ों म� लागू िकया जाएगा जहां पर प्रवासी मजदू र बड़ी मात्रा म� वतन वापस आए ह�
⇒ ⏰Duration? 125 days. To build Panchayat Bhavans, Community Toilets, Rural Mandis, Rural
Roads, Cattle Sheds, Anganwadi Bhavans Etc. with help of returnee migrants. कोरोना महामारी म� वतन
वापस �ए श्र�मकों को रोजगार देने के �लए ग्रामीण बु�नयादी अवसं रचनाओं का �नमार्ण कर�गे

64.7.7 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → National Livelihood Missions =Skill+Loan

- In the late 70s, Govt had launched Integrated Rural Development Programme (IRDP), Training
of Rural Youth for Self Employment (TRYSEM) and a half dozen other schemes
- PM Vajpayee restructed them into Swarnjayanti Gram Swarozgar Yojana (SGSY-1997), Swarna
Jayanti Sahari Rozgar Yojana (SJSRY-1999)
- ManMohan restructured them into National Rural Livelihood Mission (NRLM-2011) & Urban
Livelihood (NULM-2013) → Modi added Deen Dayal Antyodaya Yojana in prefix.
Table 1: They’re Core Schemes (Not 100% funded by Union)
Deen Dayal Antyodaya Yojana: National Deen Dayal Antyodaya Yojana: National Rural
Urban Livelihoods Mission (DAY-NURM) Livelihoods Mission (DAY-NRLM)
रा��ीय शहरी आजी�वका �मशन रा��ीय ग्रामीण आजी�वका �मशन
Ministry of Housing and Urban Affairs Ministry of Rural Development
1. Give urban poors skill training and loan 1. Bring min.1 woman from each poor
for self-employment → Govt pays its household to Self Help Group (SHG: �यं -
interest subvention via PAISA Portal. सहायता समूह) → give them training and loans
Portal (Ref: Pillar1D for more) for candle/soap/handicraft etc. biz.
2. Develop vendor markets for urban 2. Give training to rural men.
vendors (शहरी �वक्रेता) . 1+2= They’ll do self employment or skilled
3. Shelters for homeless people. (बेघर लोगों wage employment = More income then
के �लए आश्रय �ल।) working as farm labourers.
64.7.7.1 📯📯📯📯 Poverty Removal → DAY-NRLM/NULM → sub-schemes (उप-योजनाएं )
- Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY-2014):
- Rural Youth given FREE skill training using public and private sector training org.

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 - Higher age limit for SC/ST/Women/PH.
- Guaranteed Placement for at least 75% trained candidates. [नोकरी �मलने का आ�ासन]
- Covers Youth of Jammu and Kashmir (HIMAYAT scheme)
- Cover Youth of North Eastern & Left-Wing Extremist (LWE) districts (ROSHNI Scheme
उ�र पूव� और वामपं थी उग्रवाद से प्रभा�वत �जलों म�)
- Startup Village Entrepreneurship Programme (SVEP-2015): self-explanatory- training, loan,
marketing assistance etc. [Recall similar scheme in Pillar#4: MSME Ministry: PM’s Employment
Generation Scheme where person / SHG given credit linked subsidy to start non-farm micro-
enterprise]
- Aajeevika Grameen Express Yojana (AGEY-2017): interest-free loans given to SHG /
Community Based Organisations (CBOs) to buy public transport vehicle so they can earn ₹ ₹ by
transporting passengers.
- ‘SonChiraiya’ – A brand logo for marketing of urban SHGs’ products by Urban Ministry.

🔠🔠❓Which one of the following statements about the DDU – GKY is not correct?(CDS-2021-i)
(a) It is a skill training programme. (b) It is for rural youth from poor families.
(c) Its objective is placement in wage employment.
(d) It relies entirely on skill training by Government agencies.
🔠🔠❓MCQ. How does the NRLM help the poor?(Asked in UPSC-Pre-2012)
1. By setting up a large number of new manufacturing industries and agribusiness centres in rural
areas
2. By strengthening ‘self-help groups’ and providing skill development
3. By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to
farmers
Codes: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3
🔠🔠❓MCQ. Which is the earliest launched scheme of the Govt of India? (UPSC-CDS-i-2020)
a) Deendayal Antyodaya Yojana b) Pradhan Mantri Gram Sadak Yojana
c) Saansad Adarsh Gram Yojana d) Deendayal Upadhyaya Grameen Kaushalya Yojana

64.7.8 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → DISHA Committees (2016)

Boss? Ministry of Rural Development (ग्राम �वकास मं त्रालय)
- District Development Coordination and Monitoring Committee (DISHA) = elected members of
(Parliament + State legislature + Local Governments: PRI,ULB) for efficient and time-bound
development of districts.
- They’ll meet once every quarter and assess the schemes implementation.
- DISHA Committee’s chairman will be the senior most MP (Lok Sabha) from the given district.
DM/Collector(IAS) will act as member Secretary to implement the Committee’s directives.

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64.7.9 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → Mission Antyodaya (2017)
Boss? Ministry of Rural Development (ग्राम �वकास मं त्रालय)
− It’s similar to those two timepass ‘Adarsh Gram Yojanas’ we learned in Pillar#5.
− Here Govt will implement the other ongoing schemes with more vigilance and accountability
with the help of Gram Panchayat, NGOs, SHGs, ASHA workers etc.
− Target? At least 50,000 Gram Panchayats become poverty free by 2020.

64.7.10 🤲🤲🤲🤲:📯📯📯📯 Poverty Removal → SMILE 75 (�भखारी-मु� हो 75 शहर)

⇒ By Social Justice Ministry to make 75 cities “begging-free”.
⇒ To help beggars through rehabilitation, medical facilities, education, skill development,
economic opportunities etc. (�भ�ुओ ं का पुनवार्स, �चिक�ा सु�वधाओं, �श�ा, कौशल �वकास, आ�थक अवसर आिद)
64.8 🤲🤲🤲🤲:📯📯📯📯 POVERTY REMOVAL → DIRECTLY GIVE ₹ ₹ → UBI
Int-Budget-2019: We are spending ~₹ 12 lakh crores in schemes. Out of that ₹3.3 lakh crores in
subsidies. Yet, schemes/subsidies suffer from two problems.
− Inclusion Error (समावेश त्रु�ट): Non-poor families receive benefits = “free rider” problem. ~40% of
Food subsidies wasted in this manner. (जो लोग वा�व म� गरीब है िक वो सरकारी योजनाओं क� मज़े ले जाते ह�)
− Exclusion Error (बिह�रण त्रु�ट): Real Poor not receiving benefit. ~40-60% of real needy families
don't receive scheme benefit. (जो वा�व म� गरीब है उनको सरकारी योजना का लाभ �मल नहीं रहा)
− Leakage (�रसाव): 20-36% money allotted in PDS/MNREGA is gone in corruption by the
middleman / bureaucrats. (भ्र� अफसर और दलाल पैसा गबन कर जाते ह�)
− Suresh Tendulkar Poverty Estimation Method (2011) says
o Any rural person who is spending monthly ₹ 816/> is not poor = annual ₹ 9800 />
o Any urban person who is spending monthly ₹ 1000/> is not poor = annual ₹ 12000/>
− So, Economic Survey 2017 suggested, “better we simply give them money so they can spend
minimum aforementioned amounts, then they’ll automatically come out of the poverty!” That is
the idea behind UBI.
(Definition) Universal Basic Income (UBI) means govt depositing a specific sum of money in a
beneficiary’s bank account each year to augment his/her purchasing power in the open market. The
term ‘universal’ is ‘de-jure’ (औपचा�रक), in reality, UBI is not meant for rich & middle class, they’ll be
excluded. (सावर्�त्रक बु�नयादी आय: लाभाथ� के खाते म� एक �न��त रकम सरकार द्वारा जमा क� जाए.)
64.8.1 👌👌 UBI: Pro-Arguments by Eco Survey (इस सुधार के प� म� तकर् )
 Safety Net. Protects people from deprivation, destitution (अभाव, �नरा�श्रतता)
 PDS= leakage, diversion. Better give ₹ ₹ to needy to buy from open market. सावर्ज�नक �वतरण प्रणाली म�
स��डी �रसाव/धांधली �ादा
 MNREGA = Not good because it is creating shortage of farm labourers. Scheme is rife with
corruption & mismanagement. खेत मजदू रों क� कमी, भ्र�ाचार-धांधली ब�त है
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 Some people face accident of birth (SC/ST/Rural/Poor). Some people face accident of life (e.g.
drought, disaster, husband dead, caught in debt trap by informal money lender). UBI will help
them overcome these accidents, boost their psychological aspirations. �पछड़े वगर् को कज� के �वष चक्र से
�नकाल सकता है, उनक� मनोवै�ा�नक आशाओं को, आ��व�ास व् आकांशाओ को प्रो�ािहत कर सकता है
 PAN cards already linked with Bank accounts so possible to exclude rich / middle class easily. So,
implementation of UNIVERSAL BASIC INCOME should not prove difficult.
 National Human Rights Commission (NHRC) has informed the United Nations Human Rights
Council (UNHRC) that the recommended implementation of a universal basic income was
“under examination and active consideration” of the Centre. रा��ीय मानवा�धकार आयोग ने भी सं यु� रा�� क�
मानवा�धकार सं �ा को बताया है िक “हमारे देश क� सरकार इस प्र�ाव पर सिक्रय �प से गौर कर रही ह�। ”

64.8.2 👎👎 UBI: Anti-Arguments by Eco Survey (सावर्�त्रक बु�नयादी आय �वरोधी तकर् )

 Able bodied men given ‘charity’. It’ll turn them lazy. Gandhi will not approve it. (यह प्रकार से
भीख/दान देना है, गांधीजी �जदं ा होते तो कभी इसका समथर्न नहीं करते.)
 1st world nations can afford UBI because their tax:GDP is high. If we give ₹ 12000 per year to
poor people (without shutting down existing schemes) then Fiscal deficit = ~12% of GDP = new
variety of problems: Crowding out of the private borrowers → Industrial expansion + job
creation declines. (Counter arguments: if we stop all schemes/subsidies and give only ₹ 2500 /
per year as UBI to only poor people, then Fiscal deficit will stay @3% while poverty will decline
from 21.9% → just 9%] (राजकोषीय घाटा अप्र�ा�शत �प से बढ़ेगा)
 Extra money in the hands of poor without proportional increase in the supply of goods →
demand side inflation. So, poor person’s real purchasing power will not increase, he’ll remain
poor only. (मांगज�नत मं हगाई के चलते वो गरीब ही रहेगा. �ोंिक उसक� वा��वक खरीद श�� बढ़ नहीं पाएगी)
 Providing Universal basic income without crossing the fiscal deficit target will require stopping
the schemes like NFSA, MDM, MNREGA → but that will not be ‘politically feasible’. (यिद इसम�
पैसा खचर् करना है तो बाक� सारी योजनाएं बं द करनी होगी जो िक राजनी�तक �प से असं भव)
 Many families hid their assets during SECC-2011 survey, so it’s not a reliable data. So if UBI
given to people based on SECC data → Inclusion Error, with non-poors getting benefit. (अमीरों
लोग भी गरीब होने का नाटक करके योजना का लाभ ल�गे)
 Men of the house may misuse ₹ ₹ on alcohol, gambling & other social ills. Better to give
entitlements in the form of ‘kind’ e.g. free food under mid day meal, subsidized grains @PDS
shop. (शराब और जुए म� दु�पयोग)

📔📔📔📔ES17 gave both the pro and anti-arguments. Its intent was only to ‘generate a debate’ around
the topic (without suggesting UBI for immediate implementation). However eventually,
- Interim-Budget 2019: PM-KISAN ₹ 6k / per year to small and marginal farmers.

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- General Election 2019 Congress Manifesto promised to launch Nyuntam Aay Yojana (NYAY)
schemes giving ₹ 72,000 / per year to poorest 5 crore families [IF they’re elected to power].
- 2020-March: Corona- Atma Nirbhar: Pradhan Mantri Garib Kalyan Package (PMGKP)- ₹1500
transferred to women having PM Jan Dhan Bank Account. ₹1000 to poor elder, poor widows,
poor PH. [कोरोना के दौरान गरीबो के ब�क खाते म� प्र�� लाभ अंतरण/पैसा जमा िकया गया]

👍👍✍Conclusion-UBI-Favour: UBI can play a pivotal role in eliminating poverty and providing
safety net against deprivation and destitution. However, UBI should be designed & implemented in a
manner that minimizes leakage & doesn't put heavy burden on fiscal resources. गरीबी �नवारण म� सावर्�त्रक
बु�नयादी आय मदद कर सकती यिद इसे सावधानी से जाए तािक भारत का राजकोषीय घाटा ब�त न बढे और अयो�/अमीर ���यों को
इसका लाभ न �मले।

👎👎✍Conclusion-UBI-Anti: While UBI can play a pivotal role in eliminating poverty and
providing safety net against deprivation and destitution, but in the light of the aforementioned
challenges, the conditions are not yet ripe for its introduction in India. हालाक� गरीबी �नवारण म� सावर्�त्रक
बु�नयादी आय मदद तो कर सकती है िकंतु भारत म� इसे लागू करने के �लए अभी प�र���तयां /समय प�रपक़्व नहीं है

64.9 �💸💸💸💸POVERTY REMOVAL: DBT → E-RUPI

Refer to Handout Pillar1A1: Digital Payments. Already covered there.

64.10🤲🤲🤲🤲:✍→ CONCLUSION-TEMPLATE-POVERTY (�न�षर्- गरीबी �नवारण)

- While India’s GDP and national income is rising every year, not everyone has benefited equally
from this prosperity, as evident from <insert xyz report data>.
- Poverty acts as a barrier against gender development & human development. Therefore, SDG
Goal 1 aims to end poverty in all its forms everywhere.
- Aforementioned schemes / initiatives / challenges are important in that regard / need to be
addressed on priority basis.
- (भारत का सकल घरेलू उ�ाद और रा��ीय आय तो बढ़ी है लेिकन इसम� हर एक ��� को इस समृ�द्ध से एक समान �प से लाभ नहीं
�मला है। गरीबी हमेशा ल��गक �वकास और मानव �वकास म� अवरोध पैदा करती है। इस�लए उ� चीजों पर अग्रता क्रम से �ान देना
ज�री तभी हम सतत �वकास ल� नं बर#1 'गरीबी का अंत' हा�सल कर पाएं गे. )

64.10.1 ✍Past Questions in UPSC Mains Exams

- All Qs provided in the last �Handout#6D where we see weaker section, gender development,
human development and SDG.

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