India’s poverty rate has dropped below 5%, with increasing prosperity in both rural and urban areas, according to the latest household consumer expenditure survey. NITI Aayog CEO B.V.R. Subrahmanyam stated that per capita monthly household expenditure more than doubled from 2011-12 to 2022-23, indicating rising prosperity.
Subrahmanyam highlighted the success of government poverty alleviation measures based on the survey’s findings, which categorized the population into 20 groups. The average per capita monthly expenditure stood at Rs 3,773 in rural areas and Rs 6,459 in urban areas, with the bottom 0-5% class spending Rs 1,373 in rural areas and Rs 2,001 in urban areas.
The NITI Aayog CEO suggested that poverty in the country is now limited to the 0-5% group, attributing this assessment to the inflation-adjusted poverty line. The data collected from 1.55 lakh rural households and 1.07 lakh urban households indicated a 2.5 times increase in consumption in both rural and urban areas.
The survey also revealed a growth in rural consumption surpassing urban consumption, reducing disparities. Government welfare schemes have aided in increasing consumption among poor households, reflected in the narrowing gap between rural and urban consumption patterns. The share of consumption on food is declining, indicating increasing prosperity and diversification in spending habits.
Subrahmanyam emphasized that the reduced contribution of food to CPI inflation suggests a lower inflation rate, as food has historically been a significant contributor. The positive trends in consumption patterns and poverty alleviation efforts reflect an overall improvement in living standards across India.
