NSO Household Consumption Expenditure Surveys and Poverty
Kartavya Desk Staff
Syllabus: Poverty
Source: IE
Context: Recent NSO Household Consumption Surveys (2022–23 and 2023–24) and a World Bank report confirm a sharp fall in poverty rates in India, largely driven by high GDP growth and reduced inequality.
Key Highlights of NSO Household Consumption Expenditure Surveys and Poverty:
Key Indicator | Details
Updated Poverty Lines (Rangarajan Committee) | Rural: ₹972 (2011–12) to ₹1,837 (2022–23) to ₹1,940 (2023–24)
| Urban: ₹1,407 (2011–12) to ₹2,603 (2022–23) to ₹2,736 (2023–24)
Poverty Ratio (All India) | Declined from 29.5% (2011–12) to 9.5% (2022–23) and 4.9% (2023–24)
Extreme Poverty (World Bank definition) | Share of people living below $2.15/day (PPP) reduced from 16.2% to 2.3% (2011–12 to 2022–23)
Distribution of the Poor | Over 50% of poor are concentrated between 75–100% of the poverty line threshold, enabling better targeting
Consumption Inequality | Gini Coefficient declined from 0.310 (2011–12) to 0.253 (2023–24), showing improved spending equity
Rural-Urban Contribution | Both contributed equally to poverty reduction; urban areas showed faster inequality reduction
Survey Improvements | Introduced updated thresholds, refined sampling, and expanded sectoral insights in the 2022–23 and 2023–24 rounds
Poverty Trends in India (2011–2024)
• Sharp Decline in Headcount Ratio: Poverty fell from 29.5% (2011–12) to 4.9% (2023–24) — a reduction of 24.6 percentage points.
• Global Benchmark Progress: Extreme poverty (<$2.15/day) dropped from 16.2% to 2.3% (World Bank). $3.65/day poverty line fell from 61.8% to 28.1%.
• Extreme poverty (<$2.15/day) dropped from 16.2% to 2.3% (World Bank).
• $3.65/day poverty line fell from 61.8% to 28.1%.
• Impact of Growth and Inflation: GDP growth increased to 9.2% in 2023–24. CPI inflation fell to 5.4%, aiding purchasing power.
• Poverty Clustered Near Threshold: Over 50% of the poor lie just below the poverty line, making targeted support more effective.
Challenges to Poverty Eradication in India:
• Vulnerability to Shocks: Large sections hover around the poverty line and may fall back due to health or climate crises.
• Uneven Safety Nets: Welfare coverage, especially for urban poor and migrants, remains patchy (e.g., limited urban PDS access).
• Food Inflation Concerns: Food inflation rose to 7.5% in 2023–24, which disproportionately affects the poor.
• Data Gaps in Urban Poverty: Recent surveys underrepresent informal workers and unregulated job sectors.
• Regional Disparities: States like Bihar, Jharkhand, and Odisha continue to report higher poverty despite national averages improving.
Way Ahead:
• Targeted Cash Transfers: Expand schemes like PM-GKAY and DBT for LPG to reach transient poor above poverty line.
• Resilient Rural Employment: Strengthen NREGA allocations with climate-resilient job creation.
• Urban Social Protection Framework: Develop a unified urban social safety net for gig workers and migrant families.
• Invest in Education & Nutrition: Bridge learning and nutritional gaps via PM-POSHAN and Saksham Anganwadi.
• Continuous Poverty Tracking: Institutionalize annual multidimensional poverty audits using real-time data sources.
Conclusion:
India has made commendable strides in poverty reduction, bringing it down to below 5% for the first time. This has been driven by robust GDP growth and improved consumption equity. Sustained focus on inclusive safety nets and economic resilience will be key to eradicating poverty permanently.
• Explain various types of revolutions that took place in agriculture after Independence in India. How have these revolutions helped in poverty alleviation and food security in India? (UPSC-2017)