New Delhi: Prime Minister Narendra Modi Tuesday said that his government’s initiatives lifted 13.5 crore Indians out of poverty and helped them become a part of the “new middle class”.
In his last Independence Day speech before the Lok Sabha election next year, the Prime Minister mentioned his government’s schemes which he said helped a large chunk of Indians become the “new middle class”.
This, in turn, will help increase the business power of the middle class, he said.
“The result of all these efforts we have made is that today, in my tenure of five years, 13.5 crore of my poor brothers and sisters emerged as the new middle class by breaking the chains of poverty. There can be no greater satisfaction in life than this,” Modi said from the ramparts of the Red Fort.
Seeking a third term for his government, Modi said the various schemes and enhanced allocation for housing led to improvement in the economic conditions of Indians, adding that a sizable number of those below the poverty line have now moved to the middle-income level.
This, he said, will boost businesses, increase the purchasing power of Indians and add to the country’s growth. The prime minister also said that India will be among the top three economies in the next five years.
The central government’s schemes for the poor, including Pradhan Mantri Mudra Yojana, PM SVANidhi, Ayushman Bharat, etc., besides higher allocation of funds meant to provide housing to the poor have played a critical role in this shift in the economic status of Indians, he said.
Further, he said that the PM Mudra Yojana — which was launched in April 2015 to facilitate collateral-free loans of up to Rs 10 lakh to small business owners — helped eight crore people become entrepreneurs.
Earlier this month, the finance ministry had in a response to a question in Parliament submitted that the government sanctioned more than 42.20 crore loans amounting to Rs 24.34 lakh crore under this scheme.
“The Mudra Yojana, with a budget of over Rs 20 lakh crore, has provided opportunities for self-employment, businesses, and ventures for the youth of our country. About eight crore people have started new businesses, and it’s not just the eight crore who started their businesses; each entrepreneur has provided employment to one or two individuals,” Modi said Tuesday.
Financial support provided by the Centre to entrepreneurs to help them stay afloat during the pandemic too found mention in the Prime Minister’s speech. “Businesses were supported during the Covid-19 pandemic, wherein MSMEs were supported with nearly Rs 3.5 lakh crore, preventing them from sinking and providing them strength,” he said.
He added that the PM-SVANidhi scheme, which was launched in June 2020, has helped lakhs of street vendors with necessary financial assistance to restart their businesses after the pandemic. “Under PM-SVANidhi, Rs 50,000 crore has been given to street vendors,” said the Prime Minister.
The poor and the middle class have been provided assistance to have a house of their own under Pradhan Mantri Awas Yojana (PMAY), he added.
In the budget for financial year 2023-24, the Centre had increased the allocation for PM Awas Yojana (urban and rural component) by 66 percent — from Rs 48,000 crore in FY 2022-23 to Rs 79,000 crore in FY 2023-24.
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Emergence of new middle class & housing for poor
In his speech, Modi also said that poverty reduction results in more power to the country’s middle class.
“Today, the 13.5 crore people who have come out of poverty in a way become a middle class force. When the purchasing power of the poor increases, the business power of the middle class increases. When the purchasing power of the village increases, the economic system of the town and city runs at a faster pace,” he said. This development, he added, will play a role in helping India break into the bracket of the world’s top three economies.
“In the coming five years, it is Modi’s guarantee that the country will take its place among (world’s) top three economies,” he said.
While under the PMAY, the government is helping people build a house with basic facilities in both urban and rural areas, the prime minister also said that the Centre is working on a new plan to rehabilitate those living in slums and unauthorised colonies in urban areas.
“Middle class families are dreaming of their own house. We are coming up with a plan for that also for the coming few years and in which my family members who live in cities but live in rented houses, live in slums, live in chawls, unauthorised colonies…want to build their own house, then we have decided to help,” he said.
The plan, Modi said, is to provide relief in the interest of bank loans for construction of houses. “We have decided to help people save lakhs of rupees by giving relief in the interest of the loan they will take from the bank,” the prime minister said.
Data furnished by the housing and urban affairs ministry shows that more than 118.90 lakh houses have been sanctioned under PMAY-Urban, which is a demand-driven scheme, as of 10 July 2023.
According to the ministry, “Of the sanctioned houses, 112.22 lakh have been grounded for construction; of which 75.31 lakh are completed/delivered to beneficiaries. Out of ₹2.00 lakh crore (approx.) Central assistance committed, ₹1.47 lakh crore has been released till date.”
(Edited by Amrtansh Arora)
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