NCAER Report: India's Poverty Rate Plummets to 8.5% in 2022-24

Tags: Reports

Poverty in India decreased from 21.2% in 2011-12 to 8.5% in 2022-24, according to the NCAER report.

An Overview of the News

• This decline persisted despite challenges posed by the pandemic, as per data from the India Human Development Survey (IHDS).

Rural vs Urban Trends:

• Rural poverty dropped sharply from 24.8% in 2011-12 to 8.6% currently.

• Urban areas also saw a decline, from 13.4% to 8.4%.

Impact of Economic Growth:

• Economic growth contributed to poverty reduction, emphasizing the need for flexible social protection programs.

• Long-term poverty drivers are shifting from "accidents of birth" to "accidents of life," such as natural disasters and changing occupational opportunities.

Government Surveys and Data:

• NITI Aayog CEO indicated poverty has fallen to 5%, aligning with the latest consumer expenditure survey.

• NSSO data showed significant increases in per capita monthly household expenditure from 2011-12 to 2022-23.

Poverty Thresholds and Adjustments:

• Poverty lines adjusted over time: from Rs 447 and Rs 579 in 2004-05 (Tendulkar Committee) to higher thresholds in 2011-12 adjusted by the Planning Commission.