Extreme Poverty reduced to minimal in India: SBI Research
India's Poverty Rate Drops Below 5% in 2024
In 2024, poverty rates in India have fallen below 5%, with extreme poverty nearly eliminated, according to a study by the State Bank of India (SBI). The report indicates that poverty rates are now between 4-4.5%, with significant improvements in both rural and urban areas.
Rural and Urban Poverty Decline
Data from the government's Consumption Expenditure Survey shows rural poverty at 4.86% in FY24, down from 7.2% in FY23 and 25.7% in FY12. Urban poverty has also decreased to 4.09% in FY24, compared to 4.6% in FY23 and 13.7% in FY12.
Government's Role and Future Projections
Prime Minister Narendra Modi noted that over 23 crore people have escaped poverty in the last decade. The poverty estimates might be slightly revised after the 2021 census, but SBI Research anticipates further declines in urban poverty.
Methodology and Economic Growth
The poverty line, adjusted for inflation and based on NSSO data, is set at Rs 1,632 for rural and Rs 1,944 for urban areas in 2023-24. The decline in rural poverty is attributed to increased consumption among the poorest 5%, shifting the poverty line to a lower decile. This reduction highlights India's progress in improving living standards and reducing inequality.
Doubts Revealed
Poverty Rate
Poverty rate is the percentage of people in a country who live with very little money and cannot afford basic needs like food, shelter, and clothing.
SBI Report
SBI stands for State Bank of India, which is a big bank in India. They make reports to share important information about the economy, like how many people are poor.
Extreme Poverty
Extreme poverty means living on very little money, often less than what is needed for basic survival. It is a very difficult situation where people struggle to meet even their most basic needs.
Rural and Urban Poverty
Rural poverty refers to poverty in villages and countryside areas, while urban poverty is in cities and towns. The numbers show how many people are poor in these different areas.
Prime Minister Narendra Modi
Narendra Modi is the leader of India, called the Prime Minister. He helps make important decisions for the country.
Poverty Line
The poverty line is the minimum amount of money a person needs to live. If someone earns less than this amount, they are considered poor.
Rs 1,632 and Rs 1,944
These are amounts in Indian Rupees. Rs 1,632 is the poverty line for rural areas, and Rs 1,944 is for urban areas, meaning people earning less than these amounts are considered poor.
Economic Growth
Economic growth means the country is making more money and creating more jobs, which can help people earn more and improve their lives.
Targeted Policies
Targeted policies are special plans made by the government to help specific groups of people, like the poor, to improve their living conditions.
Your email address will not be published. Required fields are marked *