The UNDP’s recent Human Development Report for Asia and the Pacific commends India’s achievements in improving living standards and alleviating poverty over the past two decades. However, it also highlights the stark and growing inequalities in income and wealth distribution. Crafting policies to ensure equitable sharing of economic growth remains critical.
Poverty Reduction
- India’s per capita income increased over 5 times from $442 in 2000 to $2,389 in 2022.
- The population living below the poverty line reduced from 40% in 2004 to 10% in 2019.
- Multidimensional poverty declined from 25% in 2015-16 to 15% in 2019-21.
India’s rapid economic expansion enabled millions to rise above extreme poverty. This poverty reduction, especially compared to many sub-Saharan African nations, is a noteworthy accomplishment.
Areas of Concern
- 45% of India’s population lives in areas that are home to 62% of the poor, reflecting regional disparities.
- Vulnerable groups like women, informal workers, migrants risk slipping back into poverty.
- The top 10% of the population accounts for 57% of national income, with the top 1% claiming 22% of income.
- The richest 10% own 65% of the nation’s wealth, indicating severe wealth inequality.
Recommendations
- Target poverty alleviation in poorer states through specific policies and interventions.
- Empower marginalized communities by improving healthcare, education and livelihood access.
- Strengthen social safety nets and basic services for widespread benefit.
- Reform tax policies and administration to address wealth concentration.
- Manage the impacts of technology and globalization to ensure equitable growth.
- Focus on inclusive development measures beyond GDP growth.
- Invest in green infrastructure and renewable energy.
The Way Ahead
The UNDP report provides a blueprint for India to foster a more equal society through people-centric and inclusive growth strategies. Addressing regional disparities, empowering marginalized groups, recalibrating economic priorities and strengthening democratic institutions are key recommendations. Implementing these can significantly advance human development in India.
