US think-tank claims India has eliminated extreme poverty, with decline in 11 years comparable to past 30 years
India has successfully eradicated extreme poverty, according to a report by Brookings, a US-based think-tank. The report credits the government’s welfare programs for this achievement, highlighting the decline in poverty ratio and rise in household consumption expenditure as key factors.
The report, authored by economists Surjit Bhalla and Karan Bhasin, praises the government’s focus on basic amenities like cooking gas, housing, toilets, water, and electricity for all. It suggests that this inclusive growth approach has led to significant improvements in development indicators and poverty reduction.
The findings reveal a growth in per capita consumption, decrease in urban and rural inequality, and a substantial drop in the country’s poverty index. The report notes that real per capita consumption growth was higher in rural areas compared to urban regions.
Notably, the Headcount Poverty Ratio for the higher poverty line has plummeted from 12.2% in 2011-12 to 2% in 2022-23, with rural poverty at 2.5% and urban poverty at 1%. The report highlights the rapid decline in poverty levels over the past decade compared to previous years.
Brookings suggests that India is now ready to transition to a higher poverty line, allowing for a redefinition of social protection programs to better support the most vulnerable populations. This shift could potentially create opportunities for more effective poverty alleviation strategies in the future.
