What are the best methods India can adopt to reduce Poverty, both in short term and long term?
Two-thirds of people in India live in poverty: 68.8% of the Indian population lives on less than $2 a day. Over 30% even have less than $1.25 per day available - they are considered extremely poor. This makes the Indian subcontinent one of the poorest countries in the world. Various steps can be taken to reduce poverty in India-
In short term, the government can fulfill its distribution function better by using Direct Benefit Transfer so that the poor can benefit more from government intervention. In 2020-21, the total expenditure on subsidies is estimated to be Rs 2,62,109 crore, out of total expenditure of approx. 30 lakh crores.
One major reason for pushing people into poverty is lack of financial resources. Poor people are unable to take care of their health and education due to unavailability of resources. Financial inclusion can take small and marginal farmers out of clutches of moneylenders.
Free Education and Qualitative skilling are necessary to take youth of India out of the vicious cycle of poverty. Programmes like PM Kaushal Vikas Yojana and UDAAN are taking leaps in the direction of professional skilling of Indian youth. Free and compulsory education has been made a part of the constitution under Article 21 A as a fundamental right for students in the age group of 6-14 years.
Developed countries have tackled poverty by providing basic necessities to the poor so that they can focus on personal growth like education, health and ability to explore their talent. India can also do the same by providing basic necessities to its poor people.
Labor laws in India have been very exploitative as they were created prior to Independence. The 4 labor codes will change the situation for employees earning less than 15000 per month by giving them more rights and privileges so that they can claim social security.
Traditional knowledge and arts of rural and tribal areas can be promoted using various Programmes of the government like National cultural exchange Programme (NCEP). Promotion of traditional arts and crafts can take tribal people out of poverty and improve livelihoods of their entire family
Poverty and population create a vicious cycle which strengthen each other and create a bigger bubble of underdevelopment. To break the cycle, India needs to work simultaneously on both.