Topic: Indian Economy / Poverty Measurement / Sustainable Development Goals (SDGs)
Q5. Discuss the significance of correct estimation of “extreme poverty” in India. What are the challenges associated with it? (250 Words)
Difficulty Level: Moderate
Reference: Financial Express
Why the question?
The government aims to eradicate extreme poverty by 2030 and is developing a national indicator to measure it. This has become crucial as India currently lacks an official poverty line and is transitioning from income-based to multi-dimensional poverty estimates.
Key Demand of the Question:
Discuss the importance of a national indicator for extreme poverty and outline the challenges in poverty estimation in India.
Structure of the Answer:
Introduction: Briefly introduce the concept of extreme poverty and the government’s goal to eradicate it by 2030.
Body:
- Significance of Developing a National Indicator:
- Policy Making: Accurate measurement of extreme poverty is essential for designing effective poverty alleviation policies.
- Resource Allocation: Helps in better targeting of welfare schemes and resources.
- Monitoring Progress: A national indicator aids in tracking progress towards SDG targets and ensuring accountability.
- International Standards: Aligns India with global standards and improves its credibility on the international stage.
- Challenges in Poverty Estimation:
- Varying Definitions: Different thresholds and definitions (e.g., income-based vs. multi-dimensional) create inconsistencies.
- Data Accuracy: Issues with data collection, outdated surveys, and the lack of regular updates.
- Multi-dimensional Nature: Capturing all facets of poverty such as health, education, and living standards is complex.
- Pandemic Impact: COVID-19 has caused significant setbacks, making previous estimates less reliable.
- Regional Disparities: Variations in poverty levels across states complicate the creation of a uniform poverty line.
Conclusion:
Conclude with a way forward
