India stands on the brink of a remarkable achievement in its fight against extreme poverty. Recent analyses from government statisticians and economists reveal significant advancements over the past decade. This article explores the data and insights that highlight India's near-victory over extreme poverty.
A decade ago, approximately 12% of India's population lived on $1.90 per day or less, according to Purchasing Power Parity (PPP). This figure has now dropped to just 2%, indicating that millions have risen above the extreme poverty line. Such a substantial decline signifies meaningful improvements in the population's ability to meet basic needs.
Higher poverty levels have also seen significant reductions. Previously, 54% of the population survived on $3.20 per day or less. Today, this number has decreased to 17%, reflecting broader improvements in living standards across the nation. These reductions underscore the effectiveness of poverty alleviation policies and sustained economic growth.
The latest household consumption expenditure survey data from the National Sample Survey Organisation (NSSO) provides detailed insights into poverty levels across different states and regions in India. This data allows for accurate estimates of poverty in both rural and urban areas, presenting a clearer picture of the country's progress.
The availability of micro-level data facilitates a nuanced analysis of poverty. Such detailed information is crucial in understanding the specific needs of different regions, enabling tailored policy interventions. The new data indicates that poverty is declining faster than previously believed, with extreme poverty now at 2% nationally.
The Poverty Headcount Ratio (HCR) is a vital measure indicating the percentage of a population living below the poverty line. It provides a clear depiction of poverty's extent and allows for comparisons across regions and timeframes. The study reveals that at the $1.90 PPP poverty line, the percentage of people in poverty has plummeted from 12.2% to 2.2% over the past decade. This reduction is even more striking at the $3.20 PPP line, where poverty has fallen from 53.6% to 16.4%.
While some states have made remarkable progress, others continue to face significant challenges. States like Goa, Punjab, and Himachal Pradesh report very low poverty rates. In contrast, Bihar, Jharkhand, and Chhattisgarh still struggle with higher levels of poverty. For instance, Bihar's poverty rate, at the $3.20 per day (PPP) benchmark, fell from 69.6% in 2011-12 to 23.3% in 2022-23. Kerala also saw a notable reduction, with its rate declining from 30.3% to 16.0% during the same period.
Many states have achieved substantial declines in their poverty headcount ratios. For example, Andhra Pradesh's extreme poverty rate dropped from 4.9% to 1.0%, while Assam's rate fell from 20.7% to 3.2%. Bihar experienced a remarkable reduction from 15.1% to 2.7%. Despite these successes, some states, such as Chhattisgarh, still report higher poverty rates, though improvements are evident.
From 2011-12 to 2022-23, India has seen significant reductions in poverty across both rural and urban settings. In 2011-12, around 13% of the rural population and 11% of the urban population lived in extreme poverty at the $1.90 PPP level. By 2022-23, these figures had dropped to approximately 2% for both rural and urban areas. At the $3.20 PPP level, rural poverty decreased from 60% to 20%, while urban poverty fell from 40% to 12%.
The average monthly spending per person rose from Rs 1,803 in 2011-12 to Rs 4,737 in 2022-23, signifying a substantial enhancement in living standards. This increase in consumption reflects better economic conditions and improved access to resources.
India's progress in reducing poverty over the past decade is commendable. The decline in both extreme and higher poverty levels highlights the success of targeted policies and economic growth. While challenges persist in certain states, the overall trend is positive, indicating that India is nearing victory in its battle against extreme poverty.
Q1. What percentage of India's population lives in extreme poverty as of 2023?
Answer: As of 2023, only 2% of India's population lives in extreme poverty, a significant reduction from 12% a decade ago.
Q2. What is the Poverty Headcount Ratio (HCR)?
Answer: The Poverty Headcount Ratio (HCR) measures the percentage of a population living below the poverty line, providing insights into poverty levels over time and across regions.
Q3. Which states have low poverty rates in India?
Answer: States like Goa, Punjab, and Himachal Pradesh report very low poverty rates, while states like Bihar and Jharkhand face higher levels of poverty.
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