INDIA'S POVERTY: THE COUNTRY’S ECONOMIC STABILITY

EXECUTIVE SUMMARY

According to the Global Multidimensional Poverty Index in 2010 by the United Nations
Development Program (UNDP) and the Oxford Poverty and Human Development Initiative
(OPHI), India's measurement of people's lives in complexity varies yearly. It has focused
individually and collectively on the focus of how the multidimensional poverty has declined
yearly. Among the four countries, India halved their MPI value over the years from 2006-2016
and has reduced the number of poor people multidimensionally. Over 273 million of them
moved out of poverty in 10 years. These multidimensional changes improved the country's
development in three dimensions, namely education, health, and living standard, which varies the
survey from 2020 this year and reduced from 52% percent in the rural and urban areas in India.

India's poverty is an ever-present issue that has persisted throughout its history, and
unfortunately, it seems that it will continue to be a crisis as long as income inequality continues
to exist. The population ratio of the Indian people below the poverty line remains high. Although
some schemes have been implemented to help alleviate poverty, those flounder will always be
due to a deficiency of access to jobs, resources, and different opportunities. People may also stay
entrapped in poverty because of educational background schemes, and it has become too risky to
move up to employ in much better jobs. They often have a shortage of money to buy equipment,
supplies, and machinery, pay tuition fees for their children or even establish small businesses like
shops and stalls that would qualify them to assemble something with more value so that they can
earn more increased incomes. With a vast population and limited resources, poverty alleviation
in India has been a slow, persevering process. Subsequent governments have tried to emanate
rural-urban migration through pro-rural policies to enhance living conditions and employment
opportunities by providing comprehensive access to free education and health insurance from the
government and altering the living standards of the poorest of the low-income families.
However, millions still live below their means and somehow increase the criminality rates on the
Indian economic stability.

The Indian government initiated many welfare schemes after the country's independence,
like subsidizing increased access to loans, food through ration cards, increased access loans,
promoting education, and improving agricultural methods and family planning. These measures
helped immensely to exterminate poverty by annihilating starvation, malnutrition, illiteracy, and
the unemployment rate in the country. A paper documented the reduction in poverty by more
than half since 1991 after India's rapid economic growth. The increase in anti-poverty programs
like MGNREGA, which started in 2005, aims to provide every household with a minimum of
100 days of wage employment. Ministry of Rural Development's programs like NRLM, PMAY,
and DDUGKY concentrated on ameliorating the deprivation of Indian households. India's
prevailing economic growth over the last 30 years resumed pulling millions of family households
out of poverty. Apparently, due to the unanticipated wreck brought by COVID-19, India will
also be experiencing a much more comprehensive rate of poverty that would likely spike this
rate. The eradication of poverty in India over the next decade is within reach despite the
challenges ahead.

CONTEXT OR SCOPE OF THE PROBLEM

India is the second most populated country with over 1.2 billion people, second after
China, the seventh-largest country in the world, and is considered an impoverished country aside
from Bangladesh and Srilanka. The problems following India's economic stability and growth
affected the progress afloat from the country's current situation and opted for the inclusion of the
Covid-19 Pandemic crisis. These problems adhere to compensate for the dysentery of the
problem with the implied economic progress of the country during the pandemic despair, which
increases the mortality of poverty among the poorest of the poor in the country's remote areas.
These problems are education, health, and living standards which have allocated the country to
many diverse effects such as malnutrition, high infant mortality rate, child labor, lack of
education, early child marriage, and HIV/AIDS in the Indian taboo society.

In addition, Pakistan, Nigeria, Congo republic, and China have the highest mortality rate
regarding health epidemics such as malaria, pneumonia, diarrheal disease, and malnutrition. The
access to health issues harmed their economic stability, adheres to over 200 million people living
in the rural and urban areas. Another form of this effect is child marriage and child labor because
of education imparities of many low-income families because of lack of employment access
early marriage and child labor is an invasive process because of their parent's inferiority complex
in finding a new job with the chance of finding a new job to sustain their children education and
the like. Lastly, most Indians are infected or high-risk so-called AIDS orphans, especially in the
slums of growing cities became faster. This is due to a lack of education on unprotected and safe
sex and the education about the disease itself. 2.7 million Indians are infected because of the
tendency to rise of HIV/AIDS, especially in children.

While economic growth is a robust tool for poverty reduction, the impact of higher
growth on poverty depends significantly on the growth pattern and inequality levels. Due to
rapid growth in recent years, the Indian economy has undergone significant structural changes.
Inclusive growth has become a major policy priority and is defined as a process whereby a vast
proportion of the population shares the benefits of growth. Because of the pandemic crisis and
the inclusive mortality rate, the economic stability among the Indian families emancipates
greatly from these problems. This affects the living standards of families living in the taboo
society, which adheres to a more significant crisis in the Indian government policy and the
manifestation of economic progress. The pandemic's disproportionate impact on those families
adheres to limited solutions the government will implement.

POLICY ALTERNATIVES
 Property rights are challenging to establish lawfully. Land titles are not always
trustworthy; the judiciary is autonomous and based on English standard law; the Indian tribunals
lack human resources and technology. Large-scale political lawlessness scandals have repeatedly
exposed bribery and other malfeasance, but much corruption goes unreported and unpunished. 

The top particular income tax rate and the top corporate tax rate is 32.4 and is 30.9
percent. Other taxes comprise goods and services tax from the overall tax disadvantage equals
6.8 percent of total domestic income. Government spending has been valued at about 28.2
percent of total output (GDP) over the past three years, and budget shortages have averaged 8.7
percent of GDP. Public debt is equal to 89.6 percent of GDP. 

New procurement rules that limit some of the competitive choices, advance non-science–
based hygienic measures, and specify Indian-specific standards destroy the supply chains. New
labor codes were passed in 2020 to facilitate and reduce 29 current labor laws. Central and state
government electricity assistance has improved steadily in recent years; other essential sectors
such as education, health, infrastructure, oil, gas, mining, manufacturing, and subsidized living
standards are also invested into much higher development.

India has 17 preferential trade arrangements in the human workforce. The trade-weighted
total tariff rate is 7.0 percent, and 358 nontariff standards are in development. India’s overall
acquisition framework stays onerous, although ownership restrictions in some sectors have been
lowered. Despite some liberalization, state-owned institutions dominate the banking sector and
capital markets. Foreign participation is limited.

POLICY RECOMMENDATIONS

In recent economic developments in India, there are many scenarios that standards in the
various amnesties have developed, and with advancement in the financial strategy, there have
been acquisitions across multiple sectors of the economy. One private equity - venture capital
(PE-VC) sector recorded assets worth US$ 5.8 billion across 117 agreements in February 2022,
24% higher than in January 2022.

The Government of India has accepted several endeavors to enhance the nation's
economic circumstances. As of April 2022, India marked 13 Free Trade Agreements (FTAs)
with its trading partners, including significant trade agreements like the India-UAE (CEPA)
Comprehensive Partnership Agreement and the (IndAus ECTA) India-Australia Economic
Cooperation and Trade Agreement. The Minister for Finance & Corporate Affairs introduced the
Union Budget of 2022-23, which allocated the funding had four priorities PM GatiShakti,
Productivity Enhancement, Inclusive Development, and Investment and Financing of
Investments with an adequate capital outlay which is expected to increase by 27% at Rs. the
economic stability from the three schemes that increases the palatable image to increase of the
country's productivity-linked incentive (PLI) schemes would be expanded to 14 sectors to attain
the assignment of AtmaNirbhar Bharat and produce 60 lakh jobs with an additional presentation
capacity of Rs. Under its Make in India initiative, the Government of India is trying to boost the
manufacturing sector's contribution to 25% of the GDP from the existing 17%. Similarly, the
government has also developed the Digital India initiative, which focuses on three core
components: creating digital infrastructure, delivering services digitally, and increasing digital
literacy.

The (NARCL) National Asset Reconstruction Company Ltd will obtain bad loans worth
up to Rs with 50,000 crores (US$ 6.69 billion) about 15 narratives by March 31, 2022. (IDRCL)
India Debt Resolution Co. Ltd will manage the resolution process. This will clear India's
financial system from debts, help power liquidity, and boost the Indian economy. The United
KingdomIndia hopes to begin negotiations on a free trade agreement. The proposed FTA
between these two countries will likely unlock business opportunities and generate jobs. Both
sides have renewed their commitment to boost trade in a manner that benefits all.

The collaborated work encouraged women's entrepreneurship in India, declared an

endeavor to start a national mission to achieve the US$ 400 billion merchandise export mark by
FY22, and launched a digital payment resolution, e-RUPI, a contactless and cashless mechanism
for digital revenues and also the Minister for Railways and Commerce & Industry and Consumer
Affairs, Food & Public Distribution, founded the 'DGFT Trade Facilitation' app is used to supply
instant admission to exporters/importers anytime and anywhere and will be predicted to reach
US$ 110 billion by 2030.

APPENDICES
CONSULTED OR RECOMMENDED SOURCES

As of December 1, 2021, the impact of Covid-19 raised to 469,724 deaths that have been
attributed to pandemic India's government's response to this situation rated 74th among the
countries incorporated in this Index in terms of its severity. The economy strangled by 8.0
percent in 2020. Education is the maximum compensation and the surest pathway out of poverty.

However, our school system continues to fail students whose talents lie outside of the
traditional academic sphere. People's immediate needs for attaining a satisfactory quality of life,
like food items and clean drinking water, should be available more readily progressive and
innovative while improving the Subsidy rates on commodities and the Public Distribution
System should be made. The government should provide free high school education and an
increased number of functioning health centers.

The economic freedom of India scores 53.9, making its economy the 131st freest in the
year 2022 Index; the country ranked 27th among 39 countries in the Asia–Pacific region, and its
overall score is below the provincial and world standards.

India's economic growth has been hindered somewhat over the past five years, turning
negative in 2020 but recovering in 2021. With increases in scores for judicial effectiveness,
business freedom, and labor freedom outweighing deterioration in fiscal health, monetary
freedom is solid, but investment freedom and financial freedom lag.
 India's healthcare delivery approach is categorized into two major components public and
private. The government, i.e., the public healthcare system, contains unreasonable secondary and
tertiary care institutions in key cities and focuses on providing fundamental healthcare aptitudes
in the condition of primary healthcare compromises (PHCs) in rural areas. The private sector
nourishes most secondary, tertiary, and quaternary care institutions with a significant
concentration in the country's metros and tier-I and tier-II cities. Healthcare has evolved into one
of India's enormous sectors in revenue and employment and incorporates hospitals, outsourcing,
telemedicine, medical tourism, health insurance, medical devices, clinical trials, and medical
equipment. The Indian healthcare sector is expanding briskly due to its strengthening range and
services and improving expenditure by public and private partakers.

This would help the living standards elevate from one person to the other, creating a wide
range of progressive stability which comes from the government not only for the initiative to
elevate these certain development factors. Taking critical steps to develop health and education
sectors in these countries is an excellent way to reduce poverty with the increasing the number of
organizations that are working to reduce poverty by enlightening people of progressive countries
to be contained and to take measures associated with this matter is also another suggestion of
mine. While the objectives of these programs may be commendable, they are based on a belief
that spending money is a necessary and sufficient condition for poverty alleviation. This belief
underplays the role of non-monetary policies and the impact they have on the lives of the people
and has been the experience of many grassroots workers that often, specific government policies
harm the poor much more than the benefit that accrues to them through money-oriented schemes
like the Integrated Rural Development Programme (IRDP).

BIBLIOGRAPHY

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ECONOMIC FREEDOM SCORE 53 - The Heritage Foundation.

https://www.heritage.org/index/pdf/2022/countries/2022_IndexofEconomicFreedom-India.pdf

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https://www.jstor.org/stable/4407411

Sen, A. (Dec, 23 1998) Poverty and Famines: An Essay on Entitlement and Deprivation. Oxford
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