Poverty Reduction in India
Poverty in rural areas of India has significantly declined to less than 5% for the first time, outpacing urban poverty reduction according to an analysis by SBI Research.. This trend is attributed to higher consumption growth among the bottom 0-5% decile, supported by government initiatives.
Key Statistics
- Rural poverty fell to 4.86% in 2023-24 from 7.2% in 2022-23 and 25.7% in 2011-12.
- Urban poverty decreased to 4.09% in 2023-24 from 4.6% in 2022-23 and 13.7% in 2011-12.
- The overall poverty rate in India now ranges from 4% to 4.5%, with minimal extreme poverty.
Potential Revisions
The report suggests that these figures might be revised following the completion of the 2021 census and updated urban-rural population data.
Urban-Rural Consumption Gap
- The consumption gap between urban and rural areas has narrowed from 83.9% in 2011-12 to 69.7% in 2023-24.
Government Initiatives
- Direct Benefit Transfer (DBT): Helped in increasing the consumption capability of rural populations.
- Investments in Rural Infrastructure: Contributed to economic growth and poverty reduction.
- Boosting Farmer's Income: Improved the living standards of rural farmers and reduced poverty levels.
