People at grassroot level are the best key to poverty alleviation. The main
reason why it has been difficult to alleviate poverty is because the people who
are at the grassroot level or rather most effected by poverty are always
considered as victims of poverty in such a manner that they are believed to be
unable to tell their problem and eradicate it. They are always thought as
someone who needs to be spoken for. But rather in reality the best way for
poverty alleviation can begin at grassroot level. It can be seen in history of
Indian Independence. Many leaders have recognized this, and different measures
are taken by them. This paper would provide the need of an hour for such
More and more awareness is required in every sector as the world develops.
However, maintaining awareness in rural regions is still a crucial
characteristic. Rural communities must, despite their challenges, retain a
certain level of awareness in order for their residents to prosper. In rural
communities, there are numerous strategies to maintain awareness. It is crucial
to increase poverty awareness in rural communities. Holding surveys and
workshops is only one of several methods for doing this. Because they enable
individuals to come together and exchange information. This is crucial,
especially in rural locations where residents might not have the same access to
The objective of this paper is to discuss the root cause of persistence of
poverty and how can it be eradicated. One of the major causes of rural poverty's
persistence is a lack of knowledge of the issue. Urban residents are more likely
to take benefit of the possibilities and resources that are available to them
since they are normally more aware of them. Rural residents, meanwhile,
frequently lack access to the same opportunities and services.
may result in a vicious cycle of poverty that is hard to escape. Although it is
a worldwide issue, poverty is more common in emerging nations. One of the
nations with the greatest rates of poverty is India. About 22% of the
population, according to the World Bank, is considered to be poor and its major
cause is lack of awareness.
The another objective of this paper is to provide a broad understanding of the
various schemes by the Indian government for rural development and the general
issues faced by the villagers. It is important to have a clear perspective of
both, in order to appreciate the efforts being made and also to acknowledge the
gaps that need to be plugged. There is no denying the fact that the government
has taken various steps for the upliftment of the rural masses but much still
needs to be done in this regard. A study of the government schemes and the
problems faced by the villagers will help us have a better understanding of the
The Ministry of Rural Development (MORD) is pursuing multifaceted approaches to
combat rural poverty and enhance the economic wellbeing of those living there,
with a particular emphasis on expanding livelihood opportunities, elevating
rural women, providing a social safety net, educating rural youth, developing
infrastructure, increasing land productivity, etc. these schemes are Mahatma
Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Deendayal Antyodaya
Yojana National Rural Livelihoods Mission (DAY-NRLM), Deen Dayal Upadhyay Gramin Kaushalya Yojana (DDU-GKY), Pradhan Mantri Awaas Yojana Gramin (PMAY-G),
Pradhan Mantri Gram Sadak Yojana (PMGSY), Shyama Prasad Mukherjee National
Rurban Mission (SPMRM) and National Social Assistance Programme (NSAP), and
programmes of Department of Land Resources, viz., Watershed Development
Component of Pradhan Mantri Krishi Sinchai Yojana (WDC-PMKSY).
Though these many schemes may sound amazing, but when it comes to the
fundamentals, they are not very effective. These programmes overlap, lack a
defined mandate, and the beneficiaries seldom know about them, just like many
other government programmes.
Analysis and Findings
On April 1, 2008, the most well-known RSBY, a government-sponsored health
insurance program for the poor, was launched. It offers cashless
hospitalization. It currently has 26 million families are enrolled under it,
which covers 25 states. Currently, 14 Insurance companies from all throughout
the nation are taking part.
In addition to the ignorance problem, according to figures from the Insurance
Regulatory Development Authority (Irda) reveals a startling statistic: an
insurance company settles claims under government insurance programs with a
claim ratio as low as 31%. This indicates that just 31 claims were paid out of a
total of 100 premiums. collections made. Under RSBY, there are 3.22 million
active smart cards.
Another irony is that some of these hospitalization programmes are completely
useless because so many towns lack hospitals. Fewer claims may be due to the
fact that most villages only have primary health care facilities where patients
can cure minor illnesses with medication rather than being admitted to a
The Nagpur Municipal Corporation obtained a personal accident policy to cover
all tax payers, However, despite the fact that there have been several such
occurrences over the past seven years, the body has only made two insurance
claims. For the protection of all Rs 4.57 lakh property taxpayers and their
families, the corporation had paid an annual premium of Rs 8.83 lakh.
According to Birendra Mohanty, VP, Financial Inclusion Solutions Group, ICICI
Lombard, "with In insurance programmes of this nature, there would be the odd
operational hiccups that are faced during enrolment or claims processing, given
the connection challenges. "We investigate each of these concerns carefully and
work to find solutions. The federal and state governments have, for the most
part, recognized the importance of our contribution."
Similar to fuel or food subsidies, there is a potential that wealthy individuals
with connections in the government will misuse these benefits rather than those
who are below the poverty level. Abolish all programmes that appear to benefit
only a select few, it is also said that insurance firms do not honor all claims
if the premiums received under a specific head have already been used up. "Avoid
insurance schemes, as they fragment health care, do not provide full coverage of
needed services and fail to cover the whole population."
Insurance firms profit as long as people are unaware of claims. However, while
competition is already driving down premiums, insurance companies could go into
the red once awareness levels increase and claims increase. According to a
Vantage Insurance Broker report, premiums have decreased despite rising claims
ratios due to competition. Although the government fixed the price for RSBY at
Rs 750 per family, businesses have provided quotes that are far lower. With the
exception of Himachal Pradesh and Uttarakhand, where the premium is less than Rs
400 per household, the average premium per family is between Rs 500 and Rs 550.
"It may take some time to create awareness about the benefits of social
insurance schemes, However, many schemes incorporate mandatory awareness
campaign as part of insurance programmes and overall utilization from second
year onwards is quite satisfactory."
The Indian government has long strived to improve the rural economy. The
government has introduced a number of programmes to guarantee that the rural
population is made aware of the advantages they can take advantage of. In order
to increase employment prospects in rural areas, the government has also
developed a number of employment schemes.
It is a given that the rural areas of our country are mostly ignorant of the
government's plans and programmes. The primary cause of this is a breakdown in
communication between the government and rural residents. Rural residents are
intended to benefit from several programmes and policies, yet they are unable to
fully utilize them due to a lack of awareness.
The rural population is intended to benefit from numerous policies and
programmes, yet they are unable to fully utilize these programmes owing to a
lack of awareness. This leads to significant loss of opportunities and
resources. Although it is encouraging that the government has launched
programmes to increase rural awareness, more work has to be done. Many people
living in rural areas are unaware of these programmes. To change things, the
government must do more to increase public awareness of them.
- Strategy for Poverty Alleviation in Rural Areas
Article by Ministry of Rural Development; Posted On: 15 DEC 2021 4:04PM by PIB Delhi
- K Srinath Reddy; Director, Public Health Foundation of India.
- Amarnath Ananthanarayanan; CEO & MD, Bharti AXA General Insurance