"Poverty reduction in different states of India has not been uniform during the post-economic reform…

Question

"Poverty reduction in different states of India has not been uniform during the post-economic reform period." Examine.

Ghissu Editorial · Accepted Answer

Post-reform poverty reduction has been real but uneven, shaped by each state's economic structure, agricultural productivity, inequality and quality of governance. Multidimensional poverty fell from 29.17% to 11.28% between 2013-14 and 2022-23, with Telangana and Uttar Pradesh progressing faster while Bihar and Jharkhand lagged.

**Introduction**

Post-1991 reforms, India’s poverty reduction has been uneven across states due to diverse socio-economic factors and policy responses. This disparity reflects differences in economic growth, governance, and social infrastructure, necessitating tailored strategies for inclusive development.

**Patterns and Extent of Poverty Reduction**

1. **Overall Decline**: India’s multidimensional poverty⟦1⟧ dropped from 29.17%⟦2⟧ (2013-14) to 11.28% (2022-23), lifting over 170 million people out of poverty; Uttar Pradesh saw the largest reduction of 5.94 crore people.  
2. **State Variations**: ==Telangana’s 10.7%⟦3⟧ GSDP growth and Rs 4,18,931 per capita income in 2025-26== outpace national averages⟦4⟧, while Bihar lags with per capita income at 33% of the national average. Rural-urban divides also persist, with urban areas generally experiencing faster poverty reduction.

**Causes of Non-Uniformity**

3. **Governance and Welfare**: ==Telangana’s 12.4%⟦5⟧ welfare allocation for SC/ST/OBC and schemes like Rythu Bandhu== demonstrate effective policy targeting aiding poverty reduction. Additionally, states with weak implementation and poor targeting have lagged behind.

**Role of State Policies**

4. **Human Development**: ==Telangana’s education (9.0%) and health (4.8%) spending== supports capability building essential for sustainable poverty alleviation.  
5. **Labour Market**: ==Telangana’s 60.7% labour force participation rate vs national 55.8%== improves employment opportunities. Formalisation of jobs and urban infrastructure like Hyderabad’s HITEC City also contribute to poverty reduction.

**Way Forward**

6. **Inclusive Growth**: Skill development via the ==Skill India Digital Platform== and schemes like the Employment Linked Incentive (ELI) can create quality jobs, while expanding social protection schemes will ensure vulnerable groups benefit.

**Conclusion**

State-specific socio-economic conditions and targeted policies explain the uneven poverty reduction across India, highlighting the need for tailored, inclusive strategies to achieve equitable growth.

"Poverty reduction in different states of India has not been uniform during the post-economic reform period." Examine.

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