India has achieved a remarkable milestone with its poverty rate falling below 5% in 2024, as per a report by the State Bank of India (SBI). Extreme poverty has been nearly eradicated, reflecting significant progress in poverty alleviation efforts.
Key Findings of the Report
- Rural Poverty
- Declined to 4.86% in FY24 from 7.2% in FY23 and 25.7% in FY12.
- Urban Poverty
- Dropped to 4.09% in FY24 from 4.6% in FY23 and 13.7% in FY12.
- Reason for Improvement
- Higher consumption growth among the bottom 5% of the population led to a shift in the poverty line threshold.
Understanding the Poverty Line
The poverty line represents the minimum expenditure or income required to purchase a basic basket of goods and services essential for human needs. Individuals falling below this line are classified as poor.
Major Committees on Poverty Estimation in India
- Lakdawala Committee (1993)
- Based poverty estimates on calorie intake and consumption expenditure.
- Tendulkar Committee (2009)
- Shifted away from calorie-based metrics.
- Introduced a uniform all-India urban Poverty Line Basket for a more inclusive estimate.
- Rangarajan Committee (2014)
- Reintroduced separate rural and urban poverty lines.
- Added state-specific poverty estimates for greater accuracy.
Government Initiatives for Poverty Eradication
1. Affordable Healthcare
- Ayushman Bharat Yojana: Provides financial assistance for medical expenses.
- Pradhan Mantri Bharatiya Janaushadhi Pariyojana: Ensures access to affordable medicines.
2. Social Security and Empowerment
- Pradhan Mantri Matru Vandana Yojana: Supports pregnant and lactating mothers.
- Pradhan Mantri Garib Kalyan Anna Yojana: Offers free food grains to vulnerable populations.
3. Financial Inclusion
- PM Jan Dhan Yojana: Promotes banking services for the unbanked.
- PM Ujjwala Yojana: Provides free LPG connections to low-income families.
4. Employment and Skill Development
- MGNREGA: Guarantees 100 days of wage employment for rural households.
- PM Kaushal Vikas Yojana: Enhances skills and employability.
Conclusion
The decline in poverty rates reflects India’s progress in fostering inclusive growth and enhancing living standards for its citizens. While the numbers indicate improvement, sustained efforts through targeted policies and welfare programs remain essential to ensure that every individual has access to basic necessities and opportunities for growth.
