Evaluation of Poverty Reduction Schemes in India: Achievements and Limitations

Abstract

Poverty remains one of the most persistent socio-economic challenges in India despite decades of planned development and policy interventions. Since independence, the Government of India has implemented a wide range of poverty reduction schemes aimed at improving income levels, enhancing livelihood opportunities, and ensuring social security for vulnerable populations. Over time, these schemes have evolved from wage employment programs to more comprehensive approaches focusing on financial inclusion, skill development, and direct benefit transfers. The present study evaluates the effectiveness of major poverty reduction schemes in India during the period 1995–2022 using a longitudinal analytical framework.

The study examines key schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Rural Livelihood Mission (NRLM), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Direct Benefit Transfer (DBT) initiatives. Data have been collected from government reports, World Bank publications, and policy studies. The findings indicate that these schemes have contributed significantly to poverty reduction by improving income security, enhancing financial inclusion, and strengthening rural livelihoods. However, challenges such as implementation inefficiencies, leakages, regional disparities, and limited awareness continue to affect their overall effectiveness. The study highlights the need for better governance, transparency, and targeted interventions to achieve sustainable poverty reduction.