 "Rural India drives drop in poverty count over 6 years: Economic Survey")
An estimated 135 million Indians emerged from multidimensional poverty between 2015-16 and 2019-21, according to the Economic Survey 2023-24. This substantial progress is underscored by a sharp decline in the national Multidimensional Poverty Index (MPI), which nearly halved from 0.117 in 2015-16 to 0.066 in 2019-21.
This trend is primarily driven by improvements in rural India, with the most major gains in states such as Bihar, Madhya Pradesh, Uttar Pradesh, Odisha, and Rajasthan.
Uttar Pradesh saw the most notable reduction in poverty, with 34.3 million people escaping multidimensional poverty during this period. Notably, the number of states with less than 10 per cent of their populations living in multidimensional poverty doubled from seven in 2016 to 14 in 2021.
Expenditure on social services has increased from 6.7 per cent of gross domestic product (GDP) in 2017-18 to 7.8 per cent of GDP in 2023-24 (FY24).
The reduction in the MPI reflects both a decrease in the headcount ratio and a big drop in the intensity of poverty. India is on track to achieve the sustainable development goal of cutting multidimensional poverty by at least half by 2030.
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Moreover, increased access to education and skill development, as well as initiatives for women’s empowerment, has boosted the female labour force participation rate (LFPR) from 23.3 per cent in 2017-18 (FY18) to 37 per cent in 2022-23. However, this rise is largely driven by rural India, where nearly three-fourths of female workers are engaged in agriculture-related work.
“Thus, the rise in LFPR needs to be tapped into higher value-addition sectors suitable to the needs and qualifications of the rural female workforce,” the Survey notes.
Health care: Affordable and accessible
The Survey further highlights that health care in India has become more affordable and accessible. The share of government health expenditure (GHE) has increased both in total GDP and in total health expenditure (THE).
The latest National Health Accounts for 2019-20 (FY20) shows that the share of GHE in total GDP and in THE has risen. The share of primary health care expenditure has increased from 51.3 per cent of GHE in 2014-15 to 55.9 per cent of GHE in FY20.
Conversely, the share of primary and secondary care in private health expenditure has declined from 83 per cent to 73.7 per cent during the same period, due to the rising tertiary disease burden and increased utilisation of government facilities for primary health care, according to the Survey.
Consequently, out-of-pocket expenditure (OOPE) as a percentage of THE has decreased from 64.2 per cent in 2013-14 to 47.1 per cent in FY20.
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, which offers health insurance cover of Rs 5 lakh per year for underprivileged families for secondary and tertiary hospitalisations, has saved more than Rs 1.25 trillion in OOPE for poor and deprived families (as of January 12, 2024).
Additionally, Jan Aushadhi stores, which provide affordable generic medicines, have sold drugs and surgical equipment worth Rs 1,470 crore, leading to savings of roughly Rs 7,350 crore. On average, 1-1.2 million people visit Jan Aushadhi Kendras daily.
Student enrolment high, performance low
While expenditure on education in India has increased at a compound annual growth rate of 9.4 per cent from FY18 to FY24, student performance has not kept pace, showing a decline in performance among students in Classes 3 and 10. This occurs despite an increase in higher education institution enrollment among Scheduled Castes, Scheduled Tribes, and Other Backward Classes, as well as improvements in basic facilities such as toilets, handwashing facilities, and medical checkups, according to the Survey.