villages Poverty has decreased. Rural poverty declined to 4.86 percent in FY 2023-24 from 25.7 percent in 2011-12, mainly due to the effects of government support programs. This was said in a report released by SBI Research on Friday. This report says that poverty in urban areas also declined to 4.09 percent in the financial year ending March 2024. Whereas in the financial year 2011-12 it was at 13.7 percent. The new estimated poverty line in FY 2023-24 is Rs 1,632 in rural areas and Rs 1,944 in urban areas.
Poverty decreased in villages due to these reasons
SBI Research in its report released on Consumption Expenditure Survey said that the sharp decline in rural poverty ratio is the result of consumption growth coupled with significant government support. “This support is important as we find that changes in food prices have a significant impact not only on food expenditure but also on overall expenditure in general,” according to the report, released recently by the Ministry of Statistics and Program Implementation. The Household Consumption Expenditure Survey showed that consumption inequality in rural and urban areas during August 2023-July 2024 has narrowed compared to a year ago.
Extreme poverty will exist almost non-existent
According to SBI Research, the Consumption Expenditure Survey shows that rural poverty has declined significantly to 4.86 percent in FY 2023-24 (7.2 percent in FY 2022-23 and 25.7 percent in FY 2011-12). At the same time, urban poverty is estimated to be 4.09 percent (4.6 percent in financial year 2022-23 and 13.7 percent in 2011-12). However, the research report has expressed the possibility that there may be a slight revision in these numbers after the completion of the 2021 census and the publication of new data of rural-urban population. “We believe urban poverty could decline further. India’s poverty rate could now range between 4.0-4.5 per cent while extreme poverty would be negligible,” the report says.
Saving rate low in Uttar Pradesh and Bihar
It said that improving physical infrastructure is writing a new story in rural mobility. This is a major reason why the income gap has reduced not only between rural and urban areas but also within villages. The report estimates that food inflation reduces consumption demand more in low-income states than in high-income states. It also said that the savings rate in most high-income states is higher than the national average (31 percent). According to the report, the savings rate is low in Uttar Pradesh and Bihar which is probably due to a large section of the population residing outside the state.
(With inputs from PTI/Language)
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