A greater ease of living (How rural India is changing)

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 A greater ease of living (How rural India is changing)

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• Rural poverty: Due to low rise in agri produce prices, and poor wage growth in recent years, rural poverty has been in focus. Many also accept that pro-poor govt. schemes have worked well. Then there are claims of sharp reduction in chronic poverty and MDP from 2005-06 to 2015-16. (MDP - multi dimensional poverty)
• What about 2015-16 to 2020: There was a pro-poor welfare thrust.

1. Inflation has been low, and it's been like that for agri produce too.
2. Under NFSA, wheat and rice are available for Rs.2 and 3 per kg across India. (NFSA - National Food Security Act)
3. Public subsidy for NFSA is now very high, at Rs.1.76 trillion per annum.
4. Each family is getting a maximum of upto Rs.825 subsidy per month (can thay be considered part of wage growth?)

• Many welfare programmes: From 2015 to 2020, programmes for rural housing, toilets, LPG connections (Ujjwala), electricity under Saubhagya, bank account enrolments, insurance have happened on a larger scale. (they happened prior to 2015 also)
• Why rural demand is down: Rural households are contributing their savings to things govt. is doing for them. Example - they put their money into rural housing. So demand for goods bought in market goes down (in short run).
• Allocation for rural up: From Rs.50162 cr in 2012-12 to Rs.1.18 trillion in 2019-20, Union govt. has spent more on rural outlays. States too have done more, where their share is up to 60:40, compared to 75:25 earlier.
• Gram Panchayat funds: The 14th FC grants to Gram Panchayats are also up, and a total of upto Rs.2 lakh crores in 5 years is to be given.
• MGNREGS: Despite lower wage rates (due to low rise in CPI-AL due to low foodgrain price rise), work demand in MGNREGS has grown steadily. In 2018-19, 268 crore person days of work was done.
• NRLM: In the National Rural Livelihood Mission (now renamed DAY-NRLM), Rs.2.12 trillion of loans were given in 5 years with low NPAs. Women SHGs borrow and return properly, and diverse livelihoods have been generated.
• Why not migrate: Many rural folks are not moving to urban areas as better lives are possible due to all the above mentioned reasons. So more work is being demanded in MGNREGS. Durable assets under individual beneficiary schemes have been buit (farm ponds, dug wells, animal sheds, etc.).
• Transformational: While much remains to be done, a lot has changed in rural India in past 5 years in terms of ease of living.
• Summary : It is better to analyse rural poverty through the lens of various welfare programmes being run for them, and their transformational impact.

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