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An overview of poverty eradication programmes in India

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 Economic Affair: v.56 n.4 p. 335-343. June. 2011

An overview of poverty eradication programmes in India

A. Sundar1 and S. Angles2

1Research Scholar, Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu
2Assistant Professor, Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore. Tamil Nadu

ABSTRACT
Poverty is a social phenomenon in which a section of society is unable to fulfil even its basic necessities of life.
Government of India launched several poverty eradication programmes to create assets that benefit the poor and by
raising the productivity of the poor through education, public health and other human resource related measures. This
paper examines the overviews of poverty eradication programmes implemented in India. From the study, it is clear that
the Government have been attempting the eradication of the poverty through multi dimensional approaches. Even
though the Government plays a major role the implementation of the programmes the success yet vests with the public
private partnership where the role and commitment of the private beneficiaries without whom the projects would not
success. Recently the NGO’s and other forms of the facilitators are playing major role in coordinating the programmes
through formation of SHG’s. Still the way to go is long and achievements to be made are immense. Further integration of
various projects is essential along with the decentralisation of the powers. The schemes are executed by the Government
Bureaucrats which needs to be changed to the hands of beneficiary organisations to harvest the maximum potential
benefits to the vulnerable section of the society. Proper implementation of programmes is important to achieve the
specific set objectives rather than the numbers and huge financial allocation in the present era of economic development.
Keywords:

Introduction
Poverty is a social phenomenon in which a section of society is
unable to fulfil even its basic requirements. The third world
countries exhibit the existence of mass poverty, although poverty
also exists even in the developed countries in Europe and America.
The concept of poverty is associated with deprivation of a minimum
requirement of living or consumption that is minimum requirements
for food, clothing, housing, health, etc. According to the FAO
(2003), the number of people suffering from chronic hunger
worldwide had increased to 848 million, representing an increase
of six million over the base period estimates (1990-92). However,
the proportion of hunger during 2003-05 came down to around 16
per cent. The impact of increase in food prices in 2007 has reflected
in an increase in the proportion of hunger to 17 per cent. It has
driven an additional 41 million people to below hunger threshold
in Asia and 24 million in Sub-Saharan Africa (FAO, 2008).
According to the data revealed by the World Bank showed that
India has brought down the number of people living below $1
income a day by 2 percentage point to 24.3 per cent in three years
between 2005 to 2008. It happened because of the fact that Asia’s
third largest economy accelerated to seven per cent plus growth in
those years. World Bank also quoted the view that India has
upwardly adjusted the cost of living among developing nations to
$ 1.25 per day against $ 1 per day. Washington – based International
Food Policy Research Institute (IFPRI) in its latest report entitled.
“ The world’s Most deprived: Characteristics and Causes of Extreme
Poverty and Hunger” revealed that In Global Hunger Index (GHI)
India has been ranked at 96th place among 119 developing
countries. This Index revealed that India did fairly well in combating
hunger between 1997 to 2003.
India accounts for one-sixth of the global population and is growing
at faster rate that shortly it will become the most populous nation
in the world. The pressure on land is increasing day by day, while
agricultural productivity is not keeping pace with the population
growth. Presently, 72 per cent of India’s population and 75 per cent

Corressponding Address: kasundar7578@yahoo.co.in

*

Received: 10th April, 2011

Accepted: 5th August, 2011
 A. Sundar and S. Angles
of the country’s poor are in rural areas. Nearly two-third of the
Indian population still depends on agriculture for its livelihood
(Acharya, 2009). Thus, agricultural development is a precondition
for economic development in a developing country like India. There
has been a longstanding interest in understanding the relationship
between agriculture growth, rural development and poverty
reduction. Many studies that have attempted to analyse the factors
responsible for the rural poverty in India, mainly focused on the
agricultural growth trickling down to the poor through its indirect
effects on income and employment opportunities (Fan et al., 1999).
Though agricultural growth plays a pivotal role in alleviating
poverty, growth in the rural non-farm economy, and government
expenditure on food subsidy and employment generation have
also become important. Government expenditure has been crucial
since it contributed not only to agricultural growth but also directly
created rural non-farm jobs and higher wages. Land and water
resources improvement works are undertaken in the targeted
employment scheme to have direct impacts on poverty alleviation
in addition to increased agricultural productivity through resource
conservation. The significance of government’s developmental
expenditure is that more benefits are likely to trickle down the poor
in the growth, which often reduces poverty only by increasing
mean consumption; government expenditure reduces poverty both
by increasing income and improving the distribution of income
(Sen, 1997). In fact, the poverty-oriented programmes seek to
improve the asset base of the poor, create employment and increase
their access to basic needs.
Poverty in India
In India, poverty has declined substantially in recent decades.
According to the latest NSSO data for the year 2004-05 , poverty
level in India has come down to 21.8 % as compared to 36 per cent
in 1993-94. In urban areas, the level fell from 23.6 per cent in 1999-
2000 to 21.7 per cent in 2004-05 while in rural areas, the poverty
level came down from 27.1 per cent to 21.8 per cent during the same
period. Kerala continues to be at the top of various indicators
showing a high quality of life. Tamil Nadu, Maharastra and
Rajasthan are among those making good progress over the period.
The poorest states are Orissa, Bihar, Chatisgarh and Madya Pradesh
with poverty ratio of 46.4 per cent, 41.4 per cent, 40.9 per cent and
38.3 per cent respectively.
The steady decline in poverty from the mid-1990’s to the early
1980’s was strongly associated with agricultural growth, particularly
the Green Revolution, which led to a sharp increase in the rate of
agricultural growth (Ahluwalia 1978 and 1985). The incidence of
rural poverty declined markedly in those regions that were most
benefited from the Green Revolution. The significant feature of
this later period is that the agricultural wage rate, even though
stagnated until the mid-1970’s, showed subsequent increase in
most parts of India, which is the major factor that reduced rural
248
poverty (Tendulkar et al., 1993; Sen, 1997; Ravallion and Datt,
1995). However, the causes for the decline seem to be more
complex, non-farm wages and employment play a major role in
reducing poverty. Further, Government spending on rural poverty
and employment programmes have increased substantially in recent
years that have direct benefit to the rural poor.
Government spending may have direct and indirect effects on
poverty. The direct effects are the benefits that the poor receives
from expenditures on employment and welfare programs such as
the Integrated Rural Development Program (IRDP) and from various
rural employment schemes during drought years. The indirect
effects arise when government investments in rural infrastructure,
agricultural research, and the health and education of rural people
stimulate agricultural and non agricultural growth, leading to greater
employment and income earning opportunities for the poor and to
facilitate cheaper food.
Government initiatives to reduce poverty in India
A number of programmes have been taken up after fourth five year
plan for poverty alleviation. Development of the target group of
the rural poor is the basic objective of these programmes. It falls
into three broad categories: (i) family of livelihood creation (self-
employment) programs (ii) labour-intensive public works schemes
and (iii) income transfers in terms of kind. The poverty eradication
programmes are used to create assets that benefit the poor and by
raising the productivity of the poor through education, public
health and other human resource related measures. Some of the
most important programmes for poverty alleviation in the rural
areas are listed below (Mamoria and Tripathi, 2007).
Swarnajayanthi gram swarozgar yojana (SGSY)
The magnitude of poverty and disparities that existed between the
various social groups necessitated planned state intervention to
provide succour and relief particularly to the disadvantaged and
marginalized groups such as SC/ST, women etc. Keeping this in
view and having regard to the positive aspects as well as
deficiencies, the earlier self employment programmes like TRYSEM,
SITRA, GKY, DWCRA, IRDP and MWS were merged and a new
self employment programme viz., SGSY was launched during1999.
The main objective of the programme is to bring the existing poor
families above the poverty line. The expenditure under SGSY is
shared by the Centre and the States in the ratio of 75:25. Subsidy
will be provided at 30 per cent of the project cost subject to a
maximum of Rs. 7,500 and 50 per cent for SC/ST subject to a maximum
of Rs. 10,000. For groups, the subsidy is 50 per cent subject to a
ceiling of Rs. 1.25 lakhs.
Sampoorna grameen rozgar yojana (SGRY)
Jawahar Gram Swarozgar Yojana (JGSY) and Employment
Economic Affair: v.56 n.4 p. 335-343. June. 2011

Assurance Scheme (EAS) were merged and a new scheme namely
SGRY was launched from 15th August 2001. The main objective of
the new programme is to provide additional wage employment in
the rural areas as food security by creation of durable community
social and economic assets and infrastructure development in rural
areas. Towards this end the SGRY envisages distribution of food
grains @ 5 kg per manday to the workers as part wages. While the
cash component will be shared by the Centre and States in the
ratio of 75:25, the Central Government will supply the food grains
free of cost to the States.
Rashtriya sam vikas yojana (RSVY)
During Tenth Plan a new scheme viz, Rashtriya Sam Vikas Yojana
(RSVY)-Development and Reform Facility will be launched by
Government of India. The prime objective of RSVY is to address
the problems of pockets of high poverty, low growth, low
agricultural productivity, unemployment and poor governance by
putting in place programmes and policies, which would remove
barriers to growth and accelerate the development process. An
amount of Rs. 15 crores per year will be provided for implementation
of various developmental programmes such as drought proofing
(soil conservation, afforestation, social forestry, wasteland
development and minor irrigation), agriculture, horticulture etc.
infrastructure (road and power), social sector (health and education)
and livelihood support (income generating activities such as
handloom, information technology, agricultural processing etc.).
Jawahar rozgar yojana (JRY)
A Programme has to provide employment to the rural poor was
initiated in 1989. National Rural Employment Programme (NREP),
Rural Landless Employment Guarantee Programme (RLEGP) were
merged into this programme. The expenditure under the programme
was shared by the Centre and the States on 80 : 20 basis.
(Department of Rural Development, 1989). The primary objective
of the programme was generation of additional gainful employment
for the unemployed and underemployed persons both men and
women in the rural areas.
Small farmers agri business consortium (SFAC)
Was initiated in 1994. Increased production and productivity, value
addition and efficient linkages between producers and consumers
were high priority goals of the Consortium (Directorate of
Extension, 1994).
Integrated rural development programme (IRDP)
This programme was launched in 1987 with the main objective of
creating sustainable employment opportunities for rural poor. The
target groups under IRDP consisted of small and marginal farmers,
agricultural labourers and rural artisans living below poverty line.
The programme was merged into Swarnajayanti Gram Swarozgar
Yojana in 1999.
249
An overview of poverty eradication programmes in India
Employment assurance scheme (EAS)
It was launched in 1993. It aimed at providing assured employment
of 100 days for the poor and unskilled labourer. The scheme is
open to all men and women of rural areas who are above 18 years
and below 60 years. It has been universalised and now the scheme
covers all the community development blocks of the country.
Prime minister’s rozgar yojana (PMRY)
It was launched during 1993 for providing self employment to
educated unemployed youth. It was designed to provide
employment to more than a million persons by setting up seven
lakh micro-enterprises in Eighth Five year plan. The scheme was
continued in Ninth plan also.
National social assistance programme (NSAP)
It was started on 1995 as a 100 per cent centrally sponsored scheme
for social assistance benefits to poor households affected by old
age, death of primary bread earner and maternity care. The
programme has three components viz. National Old Age Pension
Scheme, National Maternity Benefit Scheme and National Family
Benefit Scheme.
Jawahar gram samridhi yojana (JGSY)
It was introduced in 1999 by restructuring the Jawahar Rozgar
Yojana. It is being implemented as a centrally sponsored scheme
on a cost sharing ratio of 75:25 between centre and States. The
objectives of the programme are to create durable productive
community assets and generation of wage employment for the
rural unemployed poor.
Pradhan mantri gramodaya yojana (PMGY)
It was launched in 2000-01 with the objective of focusing on village
level development in five critical area viz. health, primary education,
drinking water, housing and rural roads. It has the overall objective
of improving the quality of life in the rural areas.
Bharat nirman
It is time bound business plan for action in rural infrastructure
over the four year period (2005-09). This scheme covers the areas
of irrigation, rural roads, rural housing, rural water supply, rural
electrification and rural telecommunication connectivity.
National rural employment guarantee scheme (NREGS)
The Food for Work Programme (FWP) started in 1977 for creating
employment by utilizing the surplus stock of food grains was
restructured, renamed as National Rural Employment Guarantee
Programme (NREGP) and being implemented from 2005. The Act
covered 200 most backward districts in the country in its first year.
Hundred more districts were added in the second year, and from
Economic Affair: v.56 n.4 p. 335-343. June. 2011
 A. Sundar and S. Angles
2008 the Act would cover all district of the country. It aims to
enhance the livelihood security of the people in rural areas by
guaranteeing hundred days of wage employment in a financial
year to a rural household whose members volunteer to do unskilled
manual work (Chakraborty, 2007). The details of expenditure on
various programmes are provided in Appendix I. It shows that
recently the government is concentrating on the National Rural
Employment Guarantee Act (NREGA). During the 2006-2008, at
Tamil Nadu and All-India level, 19.70 lakhs and 602.63 lakhs
households were employed and the total amount of wage disbursed
was Rs.744.08 corers and Rs.19771.41 cores respectively.
Public distribution system (PDS)
Public Distribution System is the primary social welfare and
antipoverty programme of Government of India. It is perceived to
be the main safety net to protect the poor from short-run, price-
induced, adverse effects (Mooij, 1998). Revamped Public
Distribution System (RPDS) has been initiated by Government of
India from the year 1992 in order to serve and provide essential
commodities to the people living in remote, backward and hilly
areas. The Government had introduced Targeted Public Distribution
System (TPDS) in the year 1997. It targets the poor and distributes
the essential commodities based on income. Both Central and State
Governments have been actively involved in steering the
operations for the success of the PDS (Reddy et al., 1992).
Conclusion
Poverty is a social phenomenon in which a section of society is
unable to fulfil even its basic necessities of life. Government of
India launched several poverty eradication programmes to create
assets that benefit the poor and by raising the productivity of the
poor through education, public health and other human resource
related measures. From the study it is clear that the Government
have been attempting the eradication of the poverty through multi
dimensional approaches. Even though the Government plays a
major role the implementation of the programmes the success yet
vests with the public private partnership where the role and
commitment of the private beneficiaries without whom the projects
would not success. Recently the NGO’s and other forms of the
facilitators are playing major role in coordinating the programmes
through formation of SHG’s. Still the way to go is long and
achievements to be made are immense. Further integration of
various projects is essential along with the decentralisation of the
powers. The schemes are executed by the Government Bureaucrats
250
View publication stats
which needs to be changed to the hands of beneficiary
organisations to harvest the maximum potential benefits to the
vulnerable section of the society. Proper implementation of
programmes is important to achieve the specific set objectives
rather than the numbers and huge financial allocations in the
present era of economic development.
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