In News:

Recent Household Consumption Expenditure Surveys (2022–23 and 2023–24) by the National Statistical Office (NSO), alongside a World Bank Poverty & Equity Brief, highlight a historic decline in poverty in India. This achievement is largely attributed to sustained GDP growth and declining inequality.

Key Findings:

Poverty Reduction Trends (2011–12 to 2023–24)

• All-India Poverty Ratio: Fell from 29.5% (2011–12) → 9.5% (2022–23) → 4.9% (2023–24).
• Extreme Poverty (<$2.15/day, PPP): Declined from 16.2% → 2.3% (2011–12 to 2022–23).
• Lower-Middle Income Poverty (<$3.65/day): Declined from 61.8% → 28.1%.

Updated Poverty Lines (Rangarajan Committee Methodology):

Area            2011–12           2022–23         2023–24

Rural           ?972                 ?1,837            ?1,940

Urban         ?1,407               ?2,603            ?2,736

• For a 5-member urban household, the 2023–24 poverty threshold is ?13,680/month.

Factors Driving Poverty Reduction:

• High GDP Growth: Rose from 7.6% (2022–23) to 9.2% (2023–24).
• Moderating Inflation: Consumer Price Index (CPI) inflation dropped from 6.7% to 5.4%, enhancing real incomes. However, food inflation rose to 7.5%, affecting poor households disproportionately.
• Inequality Decline:
  • Gini Coefficient fell from 0.310 (2011–12) → 0.282 (2022–23) → 0.253 (2023–24).
  • Urban areas saw faster decline in consumption inequality.

Nature and Depth of Poverty:

• Poverty Near the Threshold:
  • Over 50% of the poor lie between 75–100% of the poverty line.
  • Large share of non-poor lie just above the line (115–125%), making them vulnerable.
• Depth Analysis (Raised Cut-Offs): Even at 125% of the poverty line, poverty fell by 34.2 percentage points (2011–24), showing broad-based gains.

Regional & Structural Challenges:

• Persisting Regional Disparities: States like Bihar, Jharkhand, Odisha still report higher poverty levels.
• Urban Informality & Data Gaps: Recent surveys underrepresent informal workers and migrants, skewing urban poverty estimates.
• Vulnerability to Shocks: Health crises, climate events, or inflation could push the near-poor back into poverty.
• Gaps in Welfare Coverage: Urban poor and migrant populations face limited access to PDS and safety nets.

Policy Imperatives:

• Targeted Cash Transfers: Scale up schemes like PM-GKAY, DBT for LPG, and tailor transfers to those just above the poverty line.
• Strengthen Rural Employment: Enhance MGNREGA funding and integrate climate-resilient jobs.
• Build Urban Safety Nets: Develop a comprehensive urban social protection framework for gig and informal sector workers.
• Education & Nutrition Investments: Bridge human capital gaps via PM POSHAN, Saksham Anganwadi.
• Continuous Poverty Monitoring: Institutionalize annual poverty tracking using real-time and multidimensional indicators.