Mission Lakhpati requires all hands on deck, whole of society approach drawing inter-linkages across industry, start-ups, markets
Prime Minister’s announcement of 2 Crore “Lakhpati Didis” in this year’s Independence Day address and his earlier exhortations to rural development stakeholders for universalisation of livelihoods is of critical significance in India’s quest for High-Income Country by 2047. This comes in the wake of recently released NITI Aayog’s National Multidimensional Poverty Index 2023 reporting sharp decline in multidimensional poverty between 2015–16 (24.85 %) and 2019–21 (14.96 %); the largest decline is reported from the erstwhile bottom rung BIMARU states of Uttar Pradesh, Madhya Pradesh and Bihar.
In total, as per that report, 135 million people have escaped multidimensional poverty in the last five years. One of the big unacknowledged drivers of in retreat of extreme poverty in India is expansion of women self- help groups and increase in access to capital and livelihoods programs under DAY-NRLM. We now have huge social capital in villages in the form of women collectives, which are spearheading the expansion and deepening the livelihoods.
Why Lakhpati ?
At Rural Development Ministry, while looking at income goal, we asked the stretch question what income levels will take each rural household to minimum acceptable standard of living or what is the level of consumption required to address multi-dimensional poverty. We looked at the Socio Economic Census, reports on consumption from Tendulkar Committee on Poverty Line and review by Rangrajan Committee; the data coming from Aspirational Districts and developed a deeper understanding with Ministry’s pan-India survey of village infrastructure and services under Mission Antyodaya. A wider understanding of these assessments showed Rs.100,000 per household in rural areas would allow acquiring a minimum quality of life and address multi-dimensional deprivations. Our assessment was corroborated by a study by McKinsey Global Institute. PM’s exhortation of additional 1 lakh annual income to the SHG families if successful adds 10 lakh crores to national GDP with conservative multiplier estimations also, the Indian economy will move into double digit growth.
Are we prepared to mount this transformation?
Deendayal Antyoday Yojana-National Rural Livelihood Mission (DAY-NRLM) which spearheads SHG mobilisation in rural areas under Ministry of Rural Development reaches directly 95 % of India’s villages in 707 Districts with various programmes across social security, economic development. It has mobilised over 9.5 crore women into Self Help Groups and their associative tiers. This is the most significant lever to the envisaged change. The sheer outreach of with the tri-sector approach of primary, secondary and tertiary sector livelihoods focusing on both farm and non-farm livelihoods is key. Some of the key farm livelihood interventions have been promotion of women farmers through agro-ecological practices (3.04 Crore), livestock development (1.06 Crore), forest based livelihoods (~5 lakh as on July, 2023), value chain development interventions (193 Producer Enterprises, about 5 lakh members; 1.38 Lakh producer groups, each with a membership of 15-50; 267 Farmers Producers’ Organization), organic farming (10370 local groups, 2 lac members). For supporting these a large number of community cadre, over 5 lakh in number, has been mobilised (Krishi Sakhi, Pashu-Sakhi, Bank Sakhi, Enterprise Sakhi). In the non-farm sector, under various initiatives such as Startup Village Entrepreneurship Development (2.34 lakh enterprises), One Stop Facility (OSF), Micro-Enterprise Development, non-farm clusters, PM Formalization of Micro-Food Enterprises (PMFME). In addition to these, the SHG/VOs take up micro-enterprise development from funds available with them. It may be mentioned that along with Rs. 33000 Cr. provided to SHGs by way of Revolving Fund and Community Investment Fund, SHGs have mobilized over Rs. 6.87 Lakh Cr. as bank credit by now, with a NPA level of 1.8 %.
Rural Economy contributed nearly half of national GDP engaging 68 % workforce, the sector composition makes for strong resilience and will remain critical to Indian economy both in terms of its contribution to the GDP as well as a source of employment. The size, slack and expanding value pick across the rural productive system, beyond primary into secondary and tertiary sectors provides immense opportunities of growth to all stakeholders. Growing enabling intent of policy and business ecosystem allows for penetration of the organised sector linked to growth in bio-economy and green opportunities. The other point why I think the goal set by PM will be met is success with welfare transfers, DBT using the JAM trinity and reduced leakages on food subsidy transfers.
With institutions like SHGs, FPOs and technology levelling capital and market reach, we can transform rural economy and de-risk it from exogenous income shocks. Women collectives are now being realised as an enormous platform to deliver both livelihood and social interventions of the Government. Almost universal spread of women collectives among poorer HHs, eagerness to participate in the development process including a very strong participation in various tiers of Panchayati Raj Institutions and forging of linkages between them and PRIs in joint planning, beneficiary identification and monitoring etc. have made them an attractive agency for forging convergences. I recall my stint as the Secretary in-charge of Rural Development in Jharkhand, where most of Agriculture and Animal Husbandry related beneficiary schemes were being implemented through NRLM platform. Many SHGs now provide canteen services in Govt. offices throughout the country.
The platform of women collectives, as frontline community organisation has allowed for convergence of all the rural focused programs. To ensure this livelihood planning has been done for each household, supporting the necessary backward and forward linkages. The Village Prosperity and Resilience Planning (VPRP) has strengthened Gram Panchayat Development Plan, which has emerged as the primary planning platform in the rural areas. The strategy includes focused planning at the district level, adequate and timely support to the household level, building convergence & partnership to leverage more for the initiative and capacity building of staff, community institution and community resource persons. It also included identification of livelihood options which were feasible within the resource matrix of the particular district.
Though, the dream was big which the PM has now set at 2 Crore to be achieved in 3 years’ time, we wanted to try this out in selected areas which were ready in this regard. Accordingly, it was decided to pilot the concept in 1 Immersion block each from 100 district. By the time I moved out as Secretary, training of more than 1200 staff of select 100 Districts was completed. Relevant draft advisory on implementation of the program have also been issued to State to facilitate smooth implementation. The staff have completed District Level Potential Mapping. To capture the data on incomes, a mobile app has been developed which has completed survey of 92% HHs, that’s over 8 crore rural households. Ministry also interacted with the DM & Collectors of 100 select districts to orient the field staff and to motivate them for walking the extra mile in economic empowerment of women.
To drive the initiative a Steering Committee under the Chairmanship of Secretary, RD with the representatives from various divisions of the Ministry as members, was formed which is instrumental in reviewing the progress and develop various strategies, give advisory services and suggest course correction needed. An initiative Rural Innovations and Service Enterprise (RISE) has been initiated to foster partnership between Cluster Level Federations and Private Sector Players for value chain interventions. Promising sub-sectors with potential for million plus livelihoods as been identified and consultations with private sector, start-up ecosystem is being done. A lesson from the sub-sector discussions is that aggregation, value chain development, technology and market linkages that are tied to high value products are essential to realizing these opportunities, and there is enough manpower and resources available within the country and the task before us is to bring about a partnership of private and public sector agencies with CSOs and community and producer institutions.
As we went about the task, it became clear to us that it is not only possible to lift all rural households above the poverty line and to provide a life of dignity, but the country had the instruments, human resources and capacity to do so. Beyond the economic and social significance this can become inflexion point for rural society. It will transform rural India addressing multiple drivers like decline in female labour work force participation rates, women empowerment and bringing growth to hinterland. We will need more resources and improved social services, but that is entirely within the capacity of Indian Nation. Mission Lakhpati requires all hands on deck, whole of society approach drawing inter-linkages across industry, start-ups, markets.
(NN Sinha is Secretary, Ministry of Steel, Government of India and former Secretary Ministry of Rural Development. Views are of author.)