New Delhi:
By 2024, the poverty rate in the country was reduced to less than 5 percent. Now a recent research by State Bank of India (SBI) has revealed that poverty has reduced to the lowest level. It said that at the aggregate level, we believe that the poverty rate in India may now be between 4-4.5 percent and extreme poverty will be almost minimal.

The report also mentions significant improvements in rural and urban poverty levels in the last few years. The data of the government’s Consumption Expenditure Survey also supports this.

According to the survey, rural poverty is estimated to be 4.86 percent in FY 2024, which is a sharp decline from 7.2 percent in FY 2023 and 25.7 percent in FY 2012. Similarly, urban poverty declined to 4.09 percent in FY 2024, compared to 4.6 percent in FY 2023 and 13.7 percent in FY 2012.

Recently, Prime Minister Narendra Modi had also said that in the last ten years, more than 23 crore people have come out of poverty.

If the 2021 census is conducted and rural-urban population data is published, there may be a slight revision in poverty estimates. However, SBI Research believes that urban poverty levels may decline further in the coming years.

It added, “It is possible that these figures may undergo minor revisions once the 2021 Census is completed and the new rural-urban population share is published. We believe urban poverty may decline further .”

The methodology of these estimates starts from the poverty line defined in 2011–12, adjusted for decadal inflation and an imputation factor derived from National Sample Survey Office (NSSO) data. The new poverty line for 2023-24 is Rs 1,632 for rural areas and Rs 1,944 for urban areas.

Using this adjusted poverty line and partial distribution data, the poverty ratio for FY 2024 has been calculated at 4.86 percent in rural areas and 4.09 percent in urban areas.

The report attributes the decline in rural poverty to higher consumption growth among the bottom 5 percent of the population, which has led to a change in the poverty line.

In FY2013, the poverty line had fallen within the 5-10 per cent decile, but by FY2024, it has shifted to the 0-5 per cent decile, indicating better economic conditions for the poorest sections of the population. .

This rapid decline in poverty levels reflects the country’s progress in improving living standards and reducing inequality. With sustained economic growth and targeted policies, especially in urban areas, the country is poised to achieve even greater poverty reduction.