A report by the American think tank Brookings Institution shows that India has escaped “extreme poverty”; as evidenced by the reduction in poverty of a large part of the population and a significant increase in family consumption.
Author: Surjit Bhalla and Mr. Karan Bhasin said the report attributes this success to the government’s significant redistributive policy that has fueled growth across India in the last decade.
India’s latest energy expenditure data for 2022-23, released recently, is the first assessment based on decade-long poverty estimates in many countries. Data shows that real per capita consumption has increased at an annual rate of 2.9% since 2011-12, with rural growth outpacing urban growth.
Additionally, urban-rural inequality has decreased more than ever before; The urban Gini coefficient decreased from 36.7 to 31.9, and the rural Gini decreased from 28.7 to 27.0.
The Brookings Institution believes that the combination of high growth and reduction in inequality has eliminated poverty in India, especially in terms of purchasing power, balance of power, and the $1.90 poverty line. The total poverty rate (HCR) at this poverty line has decreased from 12.2% in 2011-12 to 2% in 2022-23.
Furthermore, the report shows that the HCR has fallen from the high poverty line to 3.2 below, noting that India’s growth has slowed in the last decade, outpacing the progress made in poverty reduction in the last few years.
The author says that the increase in user development in rural areas shows the importance of the government in redistributing various subsidies to the public. Measures such as the National Toilet Construction Mission and ensuring universal access to basic facilities have played an important role in promoting nutrition.
The report concludes that by international standards, India’s achievements in eradicating extreme poverty are positive developments with global implications. He argues that India must now move to a higher poverty line; This requires re-evaluating existing social protection programs to identify and support people who truly need it.
