Today's Headlines - 19 August 2023
New non-poor emerging in India
GS Paper - 3 (Economy)
Prime Minister Narendra Modi said in his Independence Day address that in the first five-year term of his government, “13.5 crore of my fellow poor brothers and sisters have broken free from the chains of poverty and entered the new middle class”. The 13.5-crore number cited by the PM appears in the second National Multidimensional Poverty Index report that was published by Niti Aayog on 17 July 2023 (Some highlights in chart). The first such report was published in 2021.
What is the Multidimensional Poverty Index (MPI)?
The national MPI measures deprivations across the three dimensions of health and nutrition, education, and standard of living.
Within health, it tracks three variables: nutrition, child and adolescent mortality, and maternal health.
In education, it tracks two variables: years of schooling, and school attendance. And in standard of living, it tracks seven variables such as sanitation, drinking water, bank account, etc.
The index is based on the methodology used by the Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) to construct the Global MPI. OPHI and UNDP are technical partners in the formulation of the national index.
But India’s MPI is not exactly the same as the Global MPI. For instance, India’s MPI has 12 variables, while the Global MPI has 10. The two additional variables in India’s MPI are maternal health and bank account.
How does this reduce poverty?
It must be noted that this is a multidimensional poverty index and, as such, is not comparable to India’s traditional and official way of estimating poverty.
However, the Global MPI 2023 report, which too was released in July, states that 415 million people in India moved out of poverty between 2005-06 and 2019-21.
The Global MPI pegs India’s poverty ratio at 16.4% as against 14.96% in Niti Aayog’s MPI. This difference is on account of the two additional metrics, and some differences in definitions.
Does the reduction in poverty add to India’s middle class?
There is no official definition of the middle class in India. It is, therefore, difficult to say whether those who escape poverty necessarily join the middle class, or to what extent.
Estimates of India’s middle class provided by private research organisations peg the middle class at income levels that are considerably higher than those of the people who are coming out of poverty.
For instance, in a report, ‘The rise of India’s middle class’, published in July, People Research on India’s Consumer Economy (PRICE) divided all households into four categories: Destitutes, Aspirers, Middle Class and Rich. “…Households which are classified as Middle Class have an annual income in the range of Rs 5 lakh to Rs 30 lakh (at 2020-21 prices),” the report said. Destitute households were those with an annual income less than Rs 1.25 lakh.
According to PRICE’s survey, as of 2021, out of a population of 1,416 million, 196 million Indians were categorised as ‘Destitutes’, 432 million were the ‘Middle Class’, and 732 million were ‘Aspirers’.
#upsc #news #headline #nonpoor #emerging #india #economy #primeminister #Narendramodi #Independenceday #poverty #middle #nitiaayog #multidimensional #poverty #MPI #index #nutrition #education #bankaccount #OPHI #UNDP #methodology #oxford #sanitation #middle #class #india #research #consumer #destitude #population #price #survey #annualincome #middleclass #aspires #UNDP #technical #MPI
New non-poor emerging in India
GS Paper - 3 (Economy)
Prime Minister Narendra Modi said in his Independence Day address that in the first five-year term of his government, “13.5 crore of my fellow poor brothers and sisters have broken free from the chains of poverty and entered the new middle class”. The 13.5-crore number cited by the PM appears in the second National Multidimensional Poverty Index report that was published by Niti Aayog on 17 July 2023 (Some highlights in chart). The first such report was published in 2021.
What is the Multidimensional Poverty Index (MPI)?
The national MPI measures deprivations across the three dimensions of health and nutrition, education, and standard of living.
Within health, it tracks three variables: nutrition, child and adolescent mortality, and maternal health.
In education, it tracks two variables: years of schooling, and school attendance. And in standard of living, it tracks seven variables such as sanitation, drinking water, bank account, etc.
The index is based on the methodology used by the Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) to construct the Global MPI. OPHI and UNDP are technical partners in the formulation of the national index.
But India’s MPI is not exactly the same as the Global MPI. For instance, India’s MPI has 12 variables, while the Global MPI has 10. The two additional variables in India’s MPI are maternal health and bank account.
How does this reduce poverty?
It must be noted that this is a multidimensional poverty index and, as such, is not comparable to India’s traditional and official way of estimating poverty.
However, the Global MPI 2023 report, which too was released in July, states that 415 million people in India moved out of poverty between 2005-06 and 2019-21.
The Global MPI pegs India’s poverty ratio at 16.4% as against 14.96% in Niti Aayog’s MPI. This difference is on account of the two additional metrics, and some differences in definitions.
Does the reduction in poverty add to India’s middle class?
There is no official definition of the middle class in India. It is, therefore, difficult to say whether those who escape poverty necessarily join the middle class, or to what extent.
Estimates of India’s middle class provided by private research organisations peg the middle class at income levels that are considerably higher than those of the people who are coming out of poverty.
For instance, in a report, ‘The rise of India’s middle class’, published in July, People Research on India’s Consumer Economy (PRICE) divided all households into four categories: Destitutes, Aspirers, Middle Class and Rich. “…Households which are classified as Middle Class have an annual income in the range of Rs 5 lakh to Rs 30 lakh (at 2020-21 prices),” the report said. Destitute households were those with an annual income less than Rs 1.25 lakh.
According to PRICE’s survey, as of 2021, out of a population of 1,416 million, 196 million Indians were categorised as ‘Destitutes’, 432 million were the ‘Middle Class’, and 732 million were ‘Aspirers’.
#upsc #news #headline #nonpoor #emerging #india #economy #primeminister #Narendramodi #Independenceday #poverty #middle #nitiaayog #multidimensional #poverty #MPI #index #nutrition #education #bankaccount #OPHI #UNDP #methodology #oxford #sanitation #middle #class #india #research #consumer #destitude #population #price #survey #annualincome #middleclass #aspires #UNDP #technical #MPI
Today's Headlines - 11 September 2023
India-Middle East-Europe mega economic corridor
GS Paper - 2 (International Relations)
Prime Minister Narendra Modi announced the launch of the India-Middle East-Europe mega economic corridor. The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US.
What is the project?
The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) — a collaborative effort by G7 nations to fund infrastructure projects in developing nations. PGII is considered to be the bloc’s counter to China’s Belt and Road Initiative.
The project will aim to enable greater trade among the involved countries, including energy products.
It could also be one of the more ambitious counters to China’s massive infrastructure program, through which it has sought to connect more of the world to that country’s economy, AP said.
The corridor will include a rail link as well as an electricity cable, a hydrogen pipeline and a high-speed data cable, according to a document prepared by European Commission President Ursula von der Leyen.
The document also called the project “a green and digital bridge across continents and civilizations.”
Why is the project being proposed?
First, it would increase prosperity among the countries involved through an increased flow of energy and digital communications.
Second, the project would help deal with the lack of infrastructure needed for growth in lower- and middle-income nations.
Third, it could help “turn the temperature down” on “turbulence and insecurity” coming out of the Middle East
#upsc #headline #news #india #middle #East #Europe #mega #economic #corridor #international #relations #UAE #saudiarabia #europeanunion #france #Itlay #germany #US #project #rail #PGII #China #BELT #Road #intiative #ountries #trade #hydrogen #pipeline #speed #data #cable #civilizations #infrastructure #income #nations #turbulence #insecurity #prosperity
India-Middle East-Europe mega economic corridor
GS Paper - 2 (International Relations)
Prime Minister Narendra Modi announced the launch of the India-Middle East-Europe mega economic corridor. The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US.
What is the project?
The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) — a collaborative effort by G7 nations to fund infrastructure projects in developing nations. PGII is considered to be the bloc’s counter to China’s Belt and Road Initiative.
The project will aim to enable greater trade among the involved countries, including energy products.
It could also be one of the more ambitious counters to China’s massive infrastructure program, through which it has sought to connect more of the world to that country’s economy, AP said.
The corridor will include a rail link as well as an electricity cable, a hydrogen pipeline and a high-speed data cable, according to a document prepared by European Commission President Ursula von der Leyen.
The document also called the project “a green and digital bridge across continents and civilizations.”
Why is the project being proposed?
First, it would increase prosperity among the countries involved through an increased flow of energy and digital communications.
Second, the project would help deal with the lack of infrastructure needed for growth in lower- and middle-income nations.
Third, it could help “turn the temperature down” on “turbulence and insecurity” coming out of the Middle East
#upsc #headline #news #india #middle #East #Europe #mega #economic #corridor #international #relations #UAE #saudiarabia #europeanunion #france #Itlay #germany #US #project #rail #PGII #China #BELT #Road #intiative #ountries #trade #hydrogen #pipeline #speed #data #cable #civilizations #infrastructure #income #nations #turbulence #insecurity #prosperity