New Delhi

The level of poverty in India is estimated to have decreased to 8.5 percent of the population in 2023-24 from 21 percent in 2011-12, according to a new study by the think tank National Council for Applied Economic Research (NCAER).

The study is based on the latest data from the India Human Development Survey (IHDS).

The NCAER economists led by Sonalde Desai have estimated a decline in headcount poverty ratios in rural areas over the last 10 years from 24.8 percent in 2011-12 to 8.6 percent now. 

In urban areas, the poverty level has decreased from 13.4 percent to 8.4 percent. The decline in poverty in rural areas has been sharper than in urban areas.

The paper points out that there has been a significant increase in food subsidy through the public distribution system and other benefits run through multiple schemes launched by the Centre as well as the states which have benefited the poor.

A recent SBI Research report based on the NSSO Consumer Expenditure Survey also reflected this sharper decline in poverty in rural areas.

According to the SBI report, poverty has staged a significant 4.4 percent decline since 2018-19 and Urban Poverty 1.7 percent decline post-pandemic, which shows that government initiatives for promoting the welfare of the bottom of the pyramid are having a significant beneficial impact on rural livelihood, the report states.

Along with the sharp decline in poverty in India, there has also been a marked reduction in the rural-urban income divide in the country, the report said.

According to a recent NITI Ayog discussion paper, India has registered a significant decline in multidimensional poverty in India from 29.17 percent in 2013-14 to 11.28 percent in 2022-23 which is a reduction of 17.89 percentage points.

Significant initiatives covering all dimensions of poverty have led to 24.82 crore individuals escaping multidimensional poverty in the last 9 years, the NITI Ayog paper said.

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Uttar Pradesh registered the largest decline in the number of poor with 5.94 crore people escaping multidimensional poverty during the last nine years followed by Bihar at 3.77 crore, Madhya Pradesh at 2.30 crore, and Rajasthan at 1.87 crore, it added.