The Successes and Failures of India in Reducing

Poverty, Homelessness, and Unemployment

Ian Y.H. Chua

1, 2, 3, 4

Email: ianyhchua2024@gmail.com

12 January 2025

Introduction

India, as the world's fth-largest economy with a GDP of $4.27 trillion, has experienced

signicant economic growth in recent years. Despite this progress, the nation continues

to grapple with persistent challenges related to poverty, homelessness, and

unemployment. The projected economic growth rate of 6.4% for the scal year 2024-25

underscores the need for eective policies to address these socio-economic issues. This

paper examines the legislative actions and policies implemented to combat these

challenges, evaluates their successes and shortcomings, and discusses the realities on

the ground.

Legislative Actions and Relevant Policies

1. National Urban Housing and Habitat Policy (NUHHP), 2007

Aimed at providing aordable housing for all, particularly the economically

weaker sections, this policy focuses on promoting sustainable development of

urban habitats with a view to ensuring equitable supply of land, shelter, and

services {1].

2. Scheme of Shelters for Urban Homeless (SUH), 2013

Part of the National Urban Livelihoods Mission, this scheme seeks to provide

permanent shelters equipped with essential services to the urban homeless,

ensuring their entitlements to social security, food, and education {2].

3. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA),

2005

This act guarantees 100 days of wage employment per year to rural households,

aiming to enhance livelihood security and reduce rural poverty through the

creation of durable assets and infrastructure development {3].

4. Pradhan Mantri Awas Yojana (PMAY), 2015

A housing initiative intended to provide aordable housing to the urban poor by

2022, with a focus on slum rehabilitation, aordable housing through credit-

linked subsidies, and beneciary-led individual house construction {4].

5. National Skill Development Mission (NSDM), 2015

Launched to provide vocational training and skill development to youth, aiming

to enhance employability and address the skill gap in various sectors of the

economy {5].

Realities on the Ground and Failures in Implementation

Despite the establishment of these policies, several challenges impede their eective-

ness:

1. Inadequate Funding and Resource Allocation

Many programs suer from insuicient funding, limiting their reach and impact.

For instance, the Scheme of Shelters for Urban Homeless has reached only a

small proportion of the homeless population, with many shelters lacking basic

amenities {2].

2. Corruption and Lack of Accountability

Instances of fund misallocation and corruption have undermined the

eectiveness of poverty alleviation and housing programs, leading to delays and

substandard outcomes {6].

3. Weak Monitoring and Evaluation Systems

The absence of robust mechanisms for monitoring and evaluating program

outcomes has resulted in uneven implementation, with rural areas often

remaining underserved {7].

4. Bureaucratic Ineiciency

Complex administrative procedures hinder the timely delivery of services,

causing delays in housing project rollouts and employment guarantee schemes

{8].

5. Misperceptions and Resistance from Stakeholders

Lack of awareness and resistance from local authorities and beneciaries have

impeded the successful implementation of certain policies, particularly those

requiring community participation {9].

Three Most Impoverished States in India

As of the latest available data, the three most impoverished states in India, based on the

percentage of the population living below the poverty line, are:

1. Bihar: Approximately 33.74% of Bihar's population lives below the poverty line.

The state faces challenges such as institutional and technical deciencies,

illiteracy, and structural issues in the agricultural sector. Within Bihar, poverty

rates vary, with Kishanganj district having the highest rate at 64.75% and Patna

the lowest at 29.20% {10].

2. Jharkhand: With a poverty rate of about 42.16%, Jharkhand ranks among the

poorest states in India. Factors contributing to this include lower literacy rates,

poor educational enrollment, high child mortality, and inadequate child nutrition

{11].

3. Chhattisgarh: Approximately one-third of Chhattisgarh's population lives below

the poverty line, with a poverty rate of 39.93%. The state's economic challenges

are compounded by limited industrial development and a high dependence on

agriculture {12].

Need for Strict Monitoring, Implementation, and Accountability

To address these challenges, the following measures are essential:

1. Strengthen Oversight Mechanisms

Empower independent bodies to monitor program implementation, conduct

regular audits, and ensure accountability to identify and rectify ineiciencies

{13].

2. Enhance Transparency and Public Participation

Promote transparent reporting of program expenditures and outcomes, and

engage civil society organizations in monitoring processes to foster public trust

and accountability {14].

3. Increase Budget Allocations

Prioritize adequate funding for poverty alleviation, housing, education,

healthcare, and employment initiatives to enhance their eectiveness and reach

{15].

4. Capacity Building for Local Authorities

Provide training and technical assistance to local government units to enhance

their capacity for eective program execution and service delivery {16].

5. Promote Public Awareness

Educate the public about the benets and entitlements of these programs to

generate demand for proper implementation and create pressure on government

agencies to deliver {17].

The Benets of Money Creation

As highlighted in another paper by the same author, titled. “Leveraging Money Creation

to Address Poverty, Homelessness, and Unemployment in the Philippines”, controlled

money creation can play a signicant role in funding programs aimed at reducing poverty,

homelessness, and unemployment [18]. By strategically directing newly created funds

into underutilized sectors and implementing ination-control measures such as

progressive taxation and price controls, the government can achieve substantial

economic growth and social improvements without risking ination. This approach oers

a transformative opportunity for India to further strengthen its policy framework and

ensure better outcomes for its citizens.

Conclusion

India has established a comprehensive legislative framework to tackle poverty,

homelessness, and unemployment. However, the gap between policy formulation and

practical implementation remains signicant due to systemic issues. By enhancing

oversight, ensuring adequate funding, and fostering accountability, India can better

realize the potential of its policies to achieve inclusive and sustainable development.

Acknowledgments

This paper was developed with the assistance of ChatGPT 4.0, which provided insights and renements in the

articulation of philosophical and scientic concepts.

Founder/CEO, ACE-Learning Systems Pte Ltd.

M.Eng. Candidate, Texas Tech University, Lubbock, TX.

M.S. (Anatomical Sciences Education) Candidate, University of Florida College of Medicine, Gainesville, FL.

M.S. (Medical Physiology) Candidate, Case Western Reserve University School of Medicine, Cleveland, OH.

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