As the Sustainable Development Goals (SDGs) bring out clearly, poverty is multi-dimensional and therefore requires a range of innervations. Non-farm livelihoods and multiple livelihoods that are required to make a difference. As recent data points out, half of manufacturing and one-third of the services sector is already part of the rural economy. Income and Employment through Livelihood Development and Diversification is clearly the way forward.

• Besides the specific resource provision for Rural Poverty Programmes, the thrust on Swachh Bharat Mission (SBM), increase in the allocations of Ministry of Agriculture and other infrastructure and livelihood programmes for the poor, the total transfer of financial resources to rural India has been very significant. A large proportion of the same goes into improvement in incomes and employment.
• The Department of Rural Development has focused on development and diversification of livelihoods of the poor households.
• Developments based on Socio Economic Caste Census:
  • The Socio-Economic Caste Census (SECC) 2011 released in July 2015 provided an evidence based criteria for selection of beneficiaries under various government programmes.
  • The application of deprivation criteria of SECC to the Provision for LPG Gas connection under Ujjwala, free household electricity connection under Saubhagya, selection of beneficiaries under PMAY-G, and selection under Aayushman Bharat for National Health Protection have ensured that the benefits of development reach the most deprived on a priority.
  • The use of SECC in finalisation of Labour Budgets to States under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and insistence in enrolment of all women from households with deprivation under SHGs of Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) has also ensured that poor regions with larger number of poor households receive priority in programmes of rural poverty.
• All programmes of rural development were aligned to livelihood development and diversification.
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) focused on durable assets and water conservation, and also provided for livelihood generating individual benefits like farm ponds, dug wells, goat shed, poultry shed, housing support, and support for dairy shed.
• The livelihood linkages in convergence with subsidy programmes for animal resources and for agriculture contribute to improved incomes in the Agriculture and Allied Sectors.
• The increase in production of fruits and vegetables and the significant growth through animal resources over the last 4 years have been on account of this larger thrust on rural livelihood development and diversification.

NIPFP Report on impact of Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) on Income and Employment:

• National Institute of Public Finance and Policy (NIPFP) was requested to assess the impact of Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) on Income and Employment.
• The Report found that “By using information about the completed and under construction houses since 2016-17 that is made available through AwaaSoft and by the MoRD, it was estimated that the scheme could have generated about 52.47 crore person-days. Of this nearly 20.85 crore person-days are for skilled labour and the remaining 31.62 crore person-days are for the unskilled labour force in both years”
• For rural infrastructure, the PMGSY has been a flagship programme. A significant stepping up of road construction programmes has also generated direct and indirect employment. (MGNREGS) has been a major source of strengthening livelihood security with full transparency during this period.
• The expansion of the National Food Security Act (NFSA) with a provision of rice at Rs 3 per kg and wheat at Rs 2 per kg has facilitated food security in poor households. The increased in the Consumer Price Index for agricultural labour has been modest on account of the low food price inflation this period as food items comprise the largest chunk of the basket of goods and services for calculating the Consumer Price Index for agricultural labour.
• The subsidies on rice and wheat, and the ready availability of cheap food grains to poor households need to be factored while looking at wage rates for agricultural labour. Even with nominal increases in real wage, the purchasing power goes up as major expenditure items like rice and wheat are heavily subsidised with effective availability.

Rural Poverty:

Rural poverty is truly multi-dimensional and there is a need to address it simultaneously for greater impact. The efforts over the last few years have been towards convergence of rural initiatives to make a real difference to the well-being of poor households. These interventions have targeted both the poverty of households and the poverty of geographies. The factors contributing to these are listed below:

Poverty of Households:

• Lack of education and skills
• Under nutrition and ill health
• Lack of employment opportunities
• Assetlessness
• Lack of safe housing
• Limited access to public services
• Clutches of middlemen/corruption/moneylender
• Absence of social capital – collective of women/youth/poor households

Poverty of Geographies

• Low Price for produce – distress
• Violence/crime
• Unirrigated agri/vagaries of monsoon
• Lack of basic infra-roads, electricity, Internet
• Lack of access to markets and jobs
• Lack of non-farm opportunities

Conclusion:

The financial resources made available for addressing rural poverty over the last few years have been contributing to both rise in incomes and employment through diversification and development of livelihoods. Such increases are bound to generate employment on la large scale.