Monday, July 22, 2024

Poverty Dips To 8.5%, Says NCAER Report

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Poverty in India has declined to 8.5 percent in 2022-24 from 21.2 percent 2011-12. This finding is based upon NCAER’s report titled, “Rethinking Social Safety Nets in a Changing Society,” authored by Sonalde Desai. The report highlights that India has been able to reduce poverty despite economic hardships during the pandemic.

The Report Findings…

The report uses data from Wave 1, Wave 2 and Wave 3 of the Indian Human Development Survey (IHDS). It states that “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.”

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Furthermore, it has estimated, the headcount ratios of poverty using inflation adjusted poverty line of Tendulkar committee. It reports that there is a sharp fall in the headcount ratio of poverty. In the urban areas it has declined from 13.4% to 8.5% and in the rural areas from 24.8% in 2011-12 to 8.6% now.

Pc- TOI

The Report estimated that there was a significant increase in food subsidy through PDS and other schemes run by the center and the states. It however lays emphasis on adopting social protection systems to match societal changes for equitable development. It pointed that in an era of economic growth, the long term determinants of poverty declines. While life events like accidents, death, illness, natural disasters and occupational changes become more significant. It stated, “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.”

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Earlier This Year,

NITI Aayog had released its data, which showed that around 24.8 crore people escaped Multidimensional Poverty in the last 9 years. They noted that there is a steep decline in the headcount poverty ratio from 29.17% in 2013-14 to 11.28% in 2022-23.

Recently, NITI Aayog CEO, B V R Subrahmanyam, said that as per latest consumer expenditure survey, poverty has declined to 5% in the country. He added that that the prosperity is increasing in both rural and urban areas.

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“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,” the CEO had said.

Overall, according to NITI Aayog, India is likely to achieve its SDG target 1.2 (i.e. reducing multidimensional poverty by atleast half) much ahead of 2030.

 

 

 

 

 

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