Tamil Nadu's success in poverty reduction

• All the three editions of NITI Aayog, the Centre’s policy think tank’s implementation of Sustainable Development Goals (SDGs), have one common feature –Tamil Nadu finishing on top with regard to Goal 1 - “No Poverty.”
• It is considered the best administered State in terms of implementation of schemes.

Reasons for Tamil nadu outperforming other states

Efficient administration

• As the administrative system is highly efficient and effective, the fruits of various development and welfare schemes have reached the intended beneficiaries in a big way.
• This has been borne out by the way the Centrally sponsored schemes have been implemented.
• Also, the State’s strong culture of local data comes very handy while planning schemes and projects.
• A preliminary findings of an ongoing study, commissioned in 12 districts, on the impact of the Mahatma Gandhi National Rural Employment Scheme (MGNREGS) during the period of the COVID-19 pandemic says the Scheme has ensured food security in the State.
• Women, being a majority of the beneficiaries, use the money essentially for food items.
• As the coverage of differently abled and senior citizens has been given a special attention in the State, the two segments of the society have also been taken care of, as otherwise they would have suffered deprivation.

SHG movement

• Self-help group (SHG) movement is one of the factors that contributed to the consistent performance of Tamil Nadu with regard to the Goal No. 1.
• Tamil Nadu Women Development Project under the name of “Mahalir Thittam”, with state funding covers all rural and urban areas of the entire state, except the six city corporation areas since 1.4.2000.
• This scheme is intended to promote economic development and social empowerment of the poorest women through a network of Self Help Groups formed with active support of NGOs.
• The SHG movement is very strong in the State and its role in poverty identification and reduction is quite commendable.

Health empowerment

• Tamil Nadu has been implementing a health insurance scheme [CM’s Comprehensive Health Insurance Scheme] for more than 10 years which is the biggest factor preventing immiseration.
• The scheme has protected many vulnerable sections against adverse health events which, if not guarded, has the potential of pushing economically vulnerable people back to poverty.

Social and Industrial development

• It was largely due to government support for education, various schemes for empowerment of girls and developmental programmes that the state was ‘ready’ for foreign investors soon after Liberalisation.
• Successive governments have actively encouraged industrial development through the Tamil Nadu Industrial Development Corporation and the State Industries Promotion Corporation of Tamil Nadu, founded in 1965 and 1971, respectively.
• The latter (SIPCOT) set up industrial estates in the 1970s and 1980s.
• These agencies have been responsible for creating land banks that proved very useful when foreign investors came knocking.
• There are more industrial clusters in the state than anywhere in the country.