India's Poverty Rate Dipped To 4.5-5 Per Cent In 2022-23: SBI Research

India's poverty rate has seen a significant decline to 4.5-5 per cent in 2022-23, SBI Research said on Tuesday.

The rural poverty dropped to 7.2 per cent from 25.7 per cent in 2011-12, while urban poverty decreased to 4.6 per cent from a decade ago, according to the new Household Consumption Expenditure Survey data.

The estimated new poverty line stands at Rs 1,622 for rural areas and Rs 1,929 for urban areas.

"Rural Poverty has thus staged a significant 440-basis point decline since 2018-19 and Urban Poverty a 170-basis point decline post-pandemic," noted the researchers, highlighting the impact of government programs on rural livelihoods.

According to the recently released Consumer Expenditure Survey for 2022-23 by the statistics ministry on 24 February, the monthly per-capita consumption expenditure has surged significantly.

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Compared to 2011-12 figures, there has been a remarkable 40 per cent increase, reaching Rs 2,008.

Similarly, in urban areas, there has been a 33 per cent uptick, with the expenditure now standing at Rs 3,510 after adjusting for inflation.

The survey also mentioned that India last revised its poverty line calculations in 2014, based on a report submitted by an expert group chaired by former RBI governor C Rangarajan.

State Bank of India's group chief economic advisor Soumya Kanti Ghosh pointed out that, "States that were once considered laggards are showing the maximum improvement in rural and urban gap. States like Bihar, Uttar Pradesh and Madhya Pradesh are showing increasingly the impact of factors that are endogenous to the rural ecosystem."

"India is becoming more aspirational as indicated by the increasing share of discretionary consumption (like spending on beverages, intoxicants, entertainment and durable goods) in rural and urban areas. The speed of aspiration is swifter in rural areas as compared to urban areas," Ghosh added.

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