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A combination of increase in rural wages through fast economic growth, mainly in agriculture and other labour-intensive sectors, and targeted anti-poverty programmes are sure methods to combat poverty, the National Institution for Transforming India (NITI) Aayog believes.
Officials add the Aayog's task force on poverty elimination, whose report is expected next month, believes rapid economic growth generates employment and raises wages, pulling people faster out of poverty. It held its second meeting recently.
Officials said the panel also thinks migration-based poverty must be urgently addressed. The task force is headed by Niti Aayog Vice-Chairman Arvind Panagariya. Also on it are Bibek Debroy, member of the Aayog, experts Rathin Roy and Surjit Bhalla, and the government's chief statistician, T C A Anant. Secretaries in the departments of rural development; housing; micro, small and medium enterprises (MSMEs); and financial services are the other members.
Officials said the task force also feels industrialisation in the coming years has to be through labour-intensive sectors. Issues related to creating good jobs in manufacturing also need addressing.
Prime Minister Narendra Modi has emphasised on the need for creating more jobs in the manufacturing sector to end poverty. His government is working on a slew of measures to improve the ease of doing business in India, to also encourage entry of foreign capital in infrastructure and manufacturing segments.
The recent decisions to overhaul labour laws are part of that initiative.
Officials said the Aayog task force also felt it was important to mainstream the unorganised entrepreneurs and raise their productivity. "Ninety per cent jobs in India are created through MSMEs, of which 95 per cent is in the unorganised sector. Hence, special attention should be paid here," the task force believes.
On the rural jobs guarantee (MGNREGS), it feels the independent studies currently on or already completed on the programme could be examined by the ministry of rural development, to get a neutral picture on the ground reality.
"On its part, the Aayog has already awarded the task of evaluating MGNREGS in 29 states; six of them have already given their report," officials said.
The task force feels a mechanism of cash transfers, incentivising panchayats and municipalities through direct intervention, and addressing the problem of leakages through the Aadhar platform could be adopted for anti-poverty programmes.
"The objective should be attain the six goals highlighted by Prime Minister Narendra Modi by 2022, which includes housing for all, at least one earning member (in a household) and to be connected to at least one major road," an official said.
