Extreme poverty in India has dropped to negligible levels!

[Devadwal]

India has undermined a popular myth about development

Extreme poverty in the country has dropped to negligible levels

www.economist.com

This is a wonderful achievement. It is even more impressive because the country managed it without an industrial miracle.

now we need to work harder and smarter to eliminated completely.

====

New research suggests that the extreme poverty rate in India has dropped to ‘negligible’ levels, with rates below 5% in 2024, with rural poverty at 4.86% and urban at 4.09% as per recent reports.

The notion that development in populous, low-income countries is inherently slow seems to be wrong if we look at the recent reporting. It was and still is often cited due to the complexities of scaling interventions and the scale of poverty.

Let’s have a look into the findings, and keep in mind there are debates around the measurement of poverty.

1 Current Poverty Rate Levels in India
2 Poverty Rate in India – Historical Trends and Comparisons
3 Policy and Economic Drivers
4 Debates around the Measurement of Poverty

Current Poverty Rate Levels in India

Recent data from the State Bank of India (SBI) report, based on the 2023-24 Household Consumption Expenditure Survey (HCES), estimates that the national poverty rate has fallen below 5%, specifically between 4-4.5%. This is broken down as follows:

Region FY24 Poverty Rate (%) FY23 Poverty Rate (%) FY12 Poverty Rate (%)
Rural 4.86 7.2 25.7
Urban 4.09 4.6 13.7

These figures do indeed represent a sharp decline, with rural poverty dropping from 25.7% in FY12 to 4.86% in FY24, and urban poverty decreasing from 13.7% in FY12 to 4.09% in FY24. The poverty line for 2023-24 was set at Rs1,632 for rural areas and Rs1,944 for urban areas, adjusted for inflation based on the recommendations of the Suresh Tendulkar committee from 2011-12.

Further, a Brookings article provides additional insight using international poverty lines, noting that the Headcount Poverty Ratio (HCR) for the PPP$ 1.9 poverty line (a common measure of extreme poverty) declined from 12.2% in 2011-12 to 2% in 2022-23, equating to an annual reduction of 0.93 percentage points. For the PPP$ 3.2 poverty line, the HCR dropped from 53.6% to 20.8% over the same period, as shown in the table below:

Poverty Line 2011-12 HCR (%) 2022-23 HCR (%) Annual Reduction (ppt)
PPP$ 1.9 12.2 2 0.93
PPP$ 3.2 53.6 20.8 ~3

These statistics show the near elimination of extreme poverty in India, with the 2% HCR for PPP$ 1.9 in 2022-23 being particularly striking, suggesting that only a small fraction of the population remains below this threshold.

 

[Rajdeep]

This is wonderful news. Looks like India is going in right direction.

 

[Bhaijaan]

The real poverty is lack of wisdom and neqdili brother.

 

[Devadwal]

India has released its official consumption expenditure data for 2022-23, providing the first survey-based poverty estimates in over a decade. This update significantly reduces uncertainty in global poverty estimates.

India uses two methods for estimating consumption expenditure:
Uniform Recall Period (URP): Measures all expenditures over a 30-day period.
Modified Mixed Recall Period (MMRP): More accurate method measuring perishables over 7 days, durable goods over 365 days, and all others over 30 days.

Since 2022-23, India has officially adopted the MMRP method, aligning with global standards. The new data offers comparable poverty estimates from 2011-12 to 2022-23 for two key poverty lines:
PPP $1.9 (extreme poverty)
PPP $3.2 (recommended for lower-middle-income countries)

Key Findings from the Data:
Real per capita consumption growth was 2.9 percent annually since 2011-12.
Rural growth (3.1 percent) was higher than urban growth (2.6 percent).
Significant reduction in inequality in both urban and rural areas.

Decline in Inequality:
Urban Gini coefficient fell from 36.7 to 31.9.
Rural Gini coefficient fell from 28.7 to 27.0.
Such a steep decline in inequality alongside high growth is unprecedented in economic history.

Poverty Reduction:
Extreme poverty (PPP $1.9) has been nearly eliminated, declining from 12.2 percent in 2011-12 to just 2 percent in 2022-23.
Rural poverty is 2.5 percent, urban poverty is 1 percent.
PPP $3.2 poverty rate declined from 53.6 percent to 20.8 percent, a nearly 3 percentage point drop per year.

Importantly, these estimates do not account for:
Free food distribution (covering two-thirds of the population).
Public healthcare and education benefits.
If included, poverty levels would be even lower.

The new estimates show far fewer poor in India than previous World Bank estimates, which relied on private survey data with known methodological flaws.

Why has poverty fallen so sharply?

Strong rural development policies, including: Universal electrification and access to clean cooking fuel.
Massive expansion of piped water supply (from 16.8 percent in 2019 to 74.7 percent today).
The Aspirational Districts Program, targeting the least developed areas for improvement.

The new data highlights India’s progress in lifting millions out of poverty. With extreme poverty nearly eradicated.

PM MODI success in reducing poverty at an accelerated pace has significant global implications. The data reinforces India's position as a key driver of poverty reduction worldwide.

 

[Bhaag Viru Bhaag]

I live in your heart brother

Bhaijaan, galti se tumne dusre account se reply kar diya.

 

[Devadwal]

2004 - 50%
2015 - 19%
2024 - 2 %

This is one of the most significant global developments of our lifetime.

 

[Hikaru]

In 20 years, from half the population to only 2 percent. Bharat has exceeded my expectations.

 

[aboveandbeyond]

Whilst it's good news to see Poverty declining, there's still along way to go.

India: extreme inequality in numbers | Oxfam International

www.oxfam.org

 

[Devadwal]

Whilst it's good news to see Poverty declining, there's still along way to go.

India: extreme inequality in numbers | Oxfam International

www.oxfam.org

https://worldpoverty.io/

 

[sweep_shot]

The thing with India is they have an extremely large population. So, even a "negligible" percentage of poor people means a lot of people.

For example, 5% extreme poverty in India means there are still around 79-million poor people (5% of 1.4-billion).

If India's economy is so great, why are Indians leaving India? Some are even leaving illegally. There are over 700,000 illegal Indians in USA alone.

 

[Devadwal]

The thing with India is they have an extremely large population. So, even a "negligible" percentage of poor people means a lot of people.

For example, 5% extreme poverty in India means there are still around 79-million poor people (5% of 1.4-billion).

If India's economy is so great, why are Indians leaving India? Some are even leaving illegally. There are over 700,000 illegal Indians in USA alone.

No one is going to bangladesh or failed State but ofcourse USA is World alone superpower so people's always choose to go there.

approximately 310,000 people leaving China per year. Additionally, wealthy individuals are also leaving, with 13,800 high-net-worth individuals departing in 2023, a significant increase from 2022.

So crying in other thread . This is most important global development in the world let alone in india.

And only 2% peoples are living in extreme poverty instead your claim about 5%.

 

[aboveandbeyond]

No one is going to bangladesh or failed State but ofcourse USA is World alone superpower so people's always choose to go there.

approximately 310,000 people leaving China per year. Additionally, wealthy individuals are also leaving, with 13,800 high-net-worth individuals departing in 2023, a significant increase from 2022.

So crying in other thread . This is most important global development in the world let alone in india.

And only 2% peoples are living in extreme poverty instead your claim about 5%.

But Indians are leaving India in substantial numbers. And the U.S is not the only destination, Europe and the Gulf is also a prime destinations for Indians to flock from their country

 

[Devadwal]

But Indians are leaving India in substantial numbers. And the U.S is not the only destination, Europe and the Gulf is also a prime destinations for Indians to flock from their country

Because Indian are most skilled people's so they are going For job unlike Pakistan who are mostly going for begging in middle East Country's

Is this your problem?

 

[Devadwal]

India and Indians are progressing in every department so obviously usual suspect are crying about it. They are hurting to see india progress

 

[Bhaijaan]

The thing with India is they have an extremely large population. So, even a "negligible" percentage of poor people means a lot of people.

For example, 5% extreme poverty in India means there are still around 79-million poor people (5% of 1.4-billion).

If India's economy is so great, why are Indians leaving India? Some are even leaving illegally. There are over 700,000 illegal Indians in USA alone.

Brother if someone is earning a decent salary to be able to afford rent in a metro city and food, drinks etc, going to IPL matches. But is living away from his parents. That person is also living a life of poverty. Modern day corporate slavery needs to be acknowledged.

 

[Bhaag Viru Bhaag]

Because Indian are most skilled people's so they are going For job unlike Pakistan who are mostly going for begging in middle East Country's

Is this your problem?

Aise maza nahi aayega. Give us the stats. Also, tell us how many people from India are going to Middle Eastern countries.

 

[Devadwal]

Aise maza nahi aayega. Give us the stats. Also, tell us how many people from India are going to Middle Eastern countries.

You can search yourself like You have searched for Zomato story

 

[DeadlyVenom]

Congratulations. Less poor people is not just a win for India but a win for humanity.

 

[Vikram1989]

@Devadwal i see poverty rate was decreasing at 1 percent per year from 72 to 82 after the famous garibi hatao slogan.from 82 to 92 , poverty rate is almost stagnant and nothing happened. This is where the issue for 91 economic crisis happened i believe. No progress in any thing and Rajiv is still considered as a God despite his failures in all fronts.i see 2 decades of nothing even after China started economic liberation in 76 is all the root cause of the mess which must have cleared a long back.

 

[BouncerGuy]

No personal stuff please

 

[psyoptica]

Good job India. Next step is to make your country clean and create equal opportunities for everyone in society.

 

[Romali_rotti]

These are great wins however India's main problem will always be its population. Mother nature just won't be able to sustain this increase in numbers unfortunately...

 

[DeadlyVenom]

These are great wins however India's main problem will always be its population. Mother nature just won't be able to sustain this increase in numbers unfortunately...

As people are lifted from poverty and have more economic opportunities they tend to have less kids. It will take time but on some metrics India is on a very good track.

 

[Romali_rotti]

As people are lifted from poverty and have more economic opportunities they tend to have less kids. It will take time but on some metrics India is on a very good track.

We shall see.

 

[Bhaijaan]

delete

 

[IndoorCricket]

This is great but not enough. We need to reach middle income nation fast to keep up with rapid advancements.

 

[Romali_rotti]

This is great but not enough. We need to reach middle income nation fast to keep up with rapid advancements.

As long as the population remains high, I don't see much hope for India.

 

[Hikaru]

Population will hardly be a concern in coming decades, 2050 and beyond should be a vastly improved Bharat.

 

[IndoorCricket]

As long as the population remains high, I don't see much hope for India.

Extreme poverty results in higher population. When population reaches a critical mass of working class percentage, it would automatically drop. The focus should be on educating and providing employment opportunities for the all strata of people.