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News: Niti Aayog has released India’s first National Multidimensional Poverty Index.
| Read more: One out of every two Bihar households is multidimensionally poor: NITI Aayog |
How much disparity is there between states?
In 1991, on economic reform-eve, Bihar and Tamil Nadu were nearly at par in per capita GDP. So, the performance of these states in multidimensional poverty index indicators depends on the extent of welfare policies and their ability to deliver household amenities to the poor.
But, three decades later, TN has reduced it’s multidimensionally poor to 4.8% of the population, but not the Heartland states. (Bihar stayed at 51.9%. Jharkhand follows with 42%, UP 38% and MP 37%).
Why does Heartland state’s poor performance is a cause of concern?
Governance issues: These four states cumulatively account for 30% of seats in Lok Sabha and their electoral outcomes play a decisive role in national government formation. But, despite that, the MPI did not improve.
Massive welfare funding from Centre for these four states.
Reversal of farm laws makes even harder to reduce poverty: These four states failed to reduce the subsidy given to big farmers and did not lead the agri-reforms.
But they collectively account for nearly 5 crore of India’s 12.5 crore unviable agricultural land holdings under 2 hectares. So, the farm laws’ reversal makes poverty eradication in villages even harder.
What has to be done?
The recent NFHS-5 survey mentions that 60% of women and young children facing malnutrition. This highlights the limitations of welfarism. This has to be corrected.
To overcome the poverty, importance of economic growth has to be emphasised, and it has to create enough jobs.
Source: This post is based on the article “Heartland misery: Four states hosting 30% of Lok Sabha seats are among the poorest. That’s a message for India” published in TOI on 29th November 2021.
