Describe the role of government in reducing poverty in India? - Economics

The government’s anti-poverty strategy is based on two pillars: Promotion of Economic Growth and Targeted Anti-Poverty Programmes.

The role of the government can be described through the following key initiatives:

1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: It aims to provide 100 days of guaranteed wage employment in a year to every rural household to ensure livelihood security. One-third of the proposed jobs are reserved for women.

2. Prime Minister Rozgar Yojana (PMRY): Started in 1993, the aim of this programme is to create self-employment opportunities for educated unemployed youth in rural areas and small towns.

3. Rural Employment Generation Programme (REGP): Launched in 1995, its target is to create self-employment opportunities in rural areas and small towns.

4. Swarnajayanti Gram Swarozgar Yojana (SGSY): Launched in 1999, it aims at bringing the assisted poor families above the poverty line by organizing them into self-help groups (SHGs) through a mix of bank credit and government subsidy.

5. Pradhan Mantri Gramodaya Yojana (PMGY): Launched in 2000, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water, and rural electrification.

6. Public Distribution System (PDS): The government provides essential food grains at highly subsidized rates to families below the poverty line (BPL) through ration shops to ensure food security.

7. Promotion of Economic Growth: The government focuses on increasing the GDP growth rate, as higher growth provides the necessary resources to invest in human development and creates more job opportunities.