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India eliminates extreme poverty: Brookings report
Time has come for India to graduate to a higher poverty line much like other countries, the report stated.
Representative image / Brookings
American think tank Brookings Institution, in its latest report, has stated that India has eliminated extreme poverty. The report provides the latest information on the country's consumption expenditure data for 2022-2023.
Authored by economists Surjit S Bhalla and Karan Bhasin, the report described the findings as an “encouraging development with positive implications for global poverty headcount rates."
The study highlighted that the headcount poverty ratio (HCR), the proportion of a population that lives below the poverty line, has declined from 12.2 percent in 2011-12 to 2 percent in 2022-23, equivalent to 0.93 percentage points per year.
It showed a strikingly lower number of poor people in India than those estimated by the World Bank. The report also cited data indicating a rise in real per capita consumption by 2.9 percent per annum since 2011-12, with rural growth at 3.1 percent being significantly higher than urban growth of 2.6 percent.
There has been an unprecedented decline in urban and rural inequality. High growth and a large decline in inequality have combined to eliminate poverty in India, the Brookings report stated.
"This also means that the time has come for India to graduate to a higher poverty line much like other countries. The transition to a higher poverty line provides an opportunity to redefine existing social protection programs particularly with the objective of better identification of intended beneficiaries and providing greater support to the genuinely poor," the economists noted.
India has two different methods for estimating consumption expenditures: the uniform recall period (URP) and the more accurate modified mixed recall period (MMRP). India has officially shifted to the MMRP, the standard in other countries, beginning with the 2022-23 survey.
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