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A New Era: India's Announcement of Extreme Poverty Elimination
Courtesy/By: PARAM SAKET SARANG | 2024-03-06 00:23 Views : 229
A New Era: India's Announcement of Extreme Poverty Elimination
Introductions
A report from The Think Tank Brookings claims that "extreme poverty" has been officially eradicated in India. The authors of the report, Karan Bhasin and Surjit Bhalla, are employed by the research group Brookings.
According to a report by the US-based think tank The Brookings Institution, which used data from India's newly disclosed consumer expenditure (for 2022-23), the country has eradicated extreme poverty as it is typically defined in international comparisons.
What does data show?
According to the data, the real per capita consumption growth of the country has been 2.9% during 2011–12. However, the growth in rural areas has been substantially higher than the increase in urban areas, at 3.1% annually. Furthermore, there was an "unprecedented" drop in inequality in both urban and rural areas, with ratios of 36.7 to 31.9 and 28.7 to 27, respectively, when the Gini index was multiplied by 100.
In contrast, 2.5% of people were reported to be poor in rural areas and 1% in urban areas.
The authors, Bhalla and Bhasin, stated that "the data show a strikingly lower number of poor people in India than those estimated by the World Bank.”
Household Consumption Expenditure Survey {HCES}
Trends in Per Capita Consumption Spending
Reportage:- Except for a few inaccessible places in the Andaman and Nicobar Islands, the whole nation was covered by the survey. Data was gathered from 6,115 urban blocks and 8,723 villages, representing approximately 2,61,746 families. Of them, 1,06,732 were in urban areas and 1,55,014 were in rural regions.
In comparison to 2011–12, India’s per capita monthly consumption spending increased by 33–40% in 2022–2023; this increase was attributed to average annual growth rates of 2.7% in urban regions and 3.1% in rural areas.
In rural India, the average estimated Monthly Per Capita Consumption Expenditure (MPCE) for the year 2022–2023 was Rs 3,773; in urban India, it was Rs 6,459.
Unprecedented Drop in Poverty:- Since 2011–12, real per capita consumption growth has averaged a strong 2.9 per cent annually, highlighting persistent economic success.
Particularly noteworthy growth has occurred in rural areas, where consumption has increased at a pace of 3.1 per cent each year, faster than the 2.6% growth rate in urban areas.
Inequality Reduction:- There has been a decrease in inequality in both urban and rural areas, as seen by the decline in the urban Gini index from 36.7 to 31.9 and the rural Gini index from 28.7 to 27.0.
India's dedication to equitable development and inclusive prosperity is demonstrated by the decline in inequality.
Impact of Government Policies:- Over the past ten years, inclusive growth has been encouraged by the government's strong policy push on redistribution.
Notable programs like the national mission to build toilets, guarantee universal access to electricity, and provide modern cooking fuel have made a substantial impact on raising household consumption and living standards, particularly in rural areas.
As of August 15, 2019, 16.8% of Indian rural residents had access to piped water; today, that number is 74.7%.
Having access to clean water may have contributed to a decrease in illness and increased family income.
112 districts nationwide were found to have the lowest development indicators by the Aspirational District Program.
Data insights:- The purchasing power parity (PPP) $1.9 poverty line's Headcount Poverty Ratio (HCR) decreased by 0.93 percentage points per year, from 12.2% in 2011–12 to a meagre 2% in 2022–23.
The percentage of people living in poverty has dropped to 2.5% in rural areas and 1% in urban areas, indicating the success of focused efforts to reduce poverty.
Worldwide Acknowledgment:- It heralds a radical change in the socioeconomic climate of the nation and establishes a good example for international efforts to combat poverty.
Prospects for the Future:- India ought to now advance to a more advanced poverty line by global norms.
This shift offers a chance to improve the social protection systems that are now in place, guaranteeing that those who are truly disadvantaged are better targeted and supported.
Now that India has reached a higher poverty line, it will be able to better identify individuals in need, rethink current social security programs, and support those who remain impoverished.
Conclusions
India's steadfast dedication to inclusive development and socioeconomic advancement is demonstrated by the country's official eradication of extreme poverty. This significant achievement highlights how focused policies and initiatives have improved millions of lives and built a more just society. India is moving toward higher poverty thresholds, but the goal is still to make sure that the benefits of progress are distributed fairly so that no person or community is left behind on the path to wealth and well-being. As we celebrate this enormous accomplishment, we must also recognise that problems still exist and that ongoing work is necessary to fully address issues of poverty, inequality, and inclusive development. To promote equitable and sustainable growth and ensure that no one is left behind, the government and its partners must continue to be dedicated to putting evidence-based policies and initiatives into practice.
References
Courtesy/By: PARAM SAKET SARANG | 2024-03-06 00:23
