New Research Reveals Poverty In India Has Declined To 8.5% In 2022-24 From 21.2% In 2011-12

A new research led by NCAER has revealed that poverty in India has declined to 8.5 per cent in 2022-24 from 21.2 per cent in 2011-12, despite the challenges faced during the pandemic.

The paper has been authored by Sonalde Desai of NCAER and is titled ‘Rethinking Social Safety Nets in a Changing Society.’ For the research, the data from the newly completed Wave 3 of the India Human Development Survey (IHDS) along with the data from Waves 1 and 2 of the IHDS.

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The paper stated, “According to the IHDS findings…poverty declined significantly between 2004-2005 and 2011-12 (from a headcount ratio of 38.6 to 21.2), and it continued to decline between 2011-12 and 2022-24 (from 21.2 to 8.5) despite the challenges posed by the pandemic.”

The paper said economic growth and poverty decline create a dynamic climate that requires nimble social protection programmes.

It went on to say that when birth accidents become less significant than life accidents, traditional solutions intended to alleviate persistent poverty in a significant portion of society may become less effective.

The study pointed out that one of India’s biggest challenges in its pursuit of equitable development will be to make sure social protection institutions keep up with the rate of social transformation.

The research posits that in an era of economic prosperity and increased options, life accidents related to natural catastrophes, illness and death, and changes in opportunities unique to a given occupation may become more significant than the long-term factors of poverty.

The paper claimed, “Accidents of birth are more likely to affect long-term chronic poverty, accidents of life may have a transitory effect on moving in and out of poverty.”

The CEO of NITI Aayog, B V R Subrahmanyam, had stated earlier this year that the nation’s poverty rate has dropped to 5% and that both rural and urban residents are getting more rich. This was based on the results of the most recent consumer expenditure survey.

“If we take the poverty line and inflate it with the Consumer Price Index (CPI) to today’s rate, we see that the average consumption of the lowest fractional, the 0-5 per cent, is about the same. This means poverty in the country is there in the 0-5 per cent group only,” said the NITI Aayog CEO.

On February 24, the Ministry of Statistics and Programme Implementation’s National Sample Survey Office (NSSO) released statistics on household consumption expenditure for the year 2022–2023. The data showed that, compared to 2011–12, per capita monthly household expenditure more than quadrupled in 2022–2023.

The Tendulkar Committee Report’s proposed poverty level for rural and urban regions was Rs 447 and Rs 579, respectively, but it differed from state to state in 2004–2005. The Planning Commission then modified these poverty limits to Rs 860 and Rs 1,000 for 2011–12.

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