{"id":44362,"date":"2025-05-29T20:53:41","date_gmt":"2025-05-29T15:23:41","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=44362"},"modified":"2025-05-29T20:53:56","modified_gmt":"2025-05-29T15:23:56","slug":"poverty-fell-significantly-last-year","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/29-05-2025\/poverty-fell-significantly-last-year","title":{"rendered":"Poverty Fell Significantly Last Year"},"content":{"rendered":"\n<p><strong>Syllabus: GS 3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The latest Household Consumption Expenditure Surveys by the NSO for 2022\u201323 and 2023\u201324 show a sharp decline in <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/04-03-2025\/inida-poverty-estimation\">poverty <\/a>and a modest reduction in inequality in India.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/editorial-analysis\/08-01-2024\/problem-of-poverty-in-india\"><strong><u>What is Poverty?<\/u><\/strong><\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Poverty refers to a condition where individuals are unable to meet their basic needs. Its definition and measurement vary across countries.\u00a0<\/li>\n\n\n\n<li>In India, poverty is assessed by the number of people living below the<strong> Poverty Line, <\/strong>which represents a threshold income level.\n<ul class=\"wp-block-list\">\n<li>Households with consumption below this level are considered poor.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The poverty line represents the minimum income level necessary to meet basic needs, and varies across countries depending on their overall economic conditions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/04-03-2025\/inida-poverty-estimation\"><strong><u>Poverty measurement in India<\/u><\/strong><\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s poverty estimation has evolved over decades, starting with<strong> V N Dandekar and N Rath in 1971 <\/strong>who defined the poverty line based on calorie consumption (2,250 calories per person per day, based on National Sample Survey data of 1960-61), setting it at Rs 15 for rural and Rs 22.5 for urban areas.\u00a0<\/li>\n\n\n\n<li>In 1979, the <strong>Y K Alagh Task Force<\/strong> set poverty lines based on calorie needs of 2,400 calories (rural) and 2,100 calories (urban), which remained the official method until the 1990s.\n<ul class=\"wp-block-list\">\n<li>but this approach was criticized for not accurately reflecting poverty.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>In 1993, the Lakdawala Committee <\/strong>introduced state-specific poverty lines considering regional price differences but faced criticism for moving away from calorie standards.<\/li>\n\n\n\n<li><strong>In 2009, the Tendulkar Committee <\/strong>recommended major changes, including shifting focus from calorie-based poverty lines to nutritional outcomes, using a uniform basket for rural and urban areas, adjusting price calculations, and including health and education expenses in poverty measurement.\n<ul class=\"wp-block-list\">\n<li>According to this method, the 2009\u201310 poverty line was set at \u20b9673 per month for rural areas and \u20b9860 for urban areas.\u00a0<\/li>\n\n\n\n<li>Individuals spending less than these amounts were classified as living below the poverty line.<\/li>\n\n\n\n<li>The last official poverty data from 2011-12, based on Tendulkar\u2019s line, showed 21.9% of Indians below poverty.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In response, the <strong>Rangarajan Committee (2012-14) <\/strong>reinstated separate rural and urban poverty lines, raising poverty thresholds significantly.\n<ul class=\"wp-block-list\">\n<li>However, the government did not officially adopt this report.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Do you know?<\/strong><br>&#8211; The World Bank updated the global poverty line in September 2022 to $2.15 per person per day, replacing the 2017 poverty line of $1.90, based on purchasing power parity (PPP).\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Trends of poverty in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The overall poverty rate dropped from 29.5% in 2011\u201312 to 9.5% in 2022\u201323 and further to 4.9% in 2023\u201324.\u00a0<\/li>\n\n\n\n<li>This trend aligns with an increase in GDP growth and a decline in general inflation, although food inflation rose slightly.\u00a0<\/li>\n\n\n\n<li>Welfare programmes remained largely unchanged, suggesting that economic growth may be a key factor in recent poverty reduction.\u00a0<\/li>\n\n\n\n<li>The World Bank recently released a <strong>Poverty &amp; Equity Brief for over 100 developing countries.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>It reported a substantial decline in extreme poverty, from 16.2% in 2011\u201312 to 2.3% in 2022\u201323.\u00a0<\/li>\n\n\n\n<li>Analysis shows most of the poor are clustered just below the poverty line, while many non-poor are slightly above it, indicating that poverty is not deeply entrenched.<\/li>\n\n\n\n<li>Even when poverty lines are raised to 125%, the decline remains significant.\u00a0<\/li>\n\n\n\n<li>Inequality, measured by the <strong>Gini coefficient<\/strong>, fell from 0.310 in 2011\u201312 to 0.253 in 2023\u201324, with an unusually sharp decline between 2022\u201323 and 2023\u201324.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Governments Steps\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Government of India has made significant strides in enhancing the quality of life and reducing poverty in its many forms.<\/li>\n\n\n\n<li>The programme implemented by the government to generate Employment and alleviate poverty are &#8211; The Mahatma Gandhi National Rural Employment Guarantee Scheme<strong> (MGNREGS)<\/strong>, Swarnjayanti Gram Swarozgar Yojana <strong>(SGSY)<\/strong>, and Swarna Jayanti Sahari Rozgar Yojna <strong>(SJSRY)<\/strong>.<\/li>\n\n\n\n<li>Key initiatives such as<strong> Poshan Abhiyan and Anemia Mukt Bharat<\/strong> have notably improved access to healthcare, leading to a marked reduction in deprivation.\u00a0<\/li>\n\n\n\n<li>The government also operates one of the world\u2019s largest food security programs\u2014the Targeted Public Distribution System<strong> <\/strong>under the <strong>National Food Security Act.<\/strong><\/li>\n\n\n\n<li>Decisions, such as extending free food grain distribution under <strong>Pradhan Mantri Garib Kalyan Anna Yojana <\/strong>for another five years, exemplify the Government&#8217;s commitment.\u00a0<\/li>\n\n\n\n<li>Various programs addressing maternal health, clean cooking fuel distribution through <strong>Ujjwala Yojana<\/strong>, improved electricity coverage via Saubhagya, and transformative campaigns like <strong>Swachh Bharat Mission and Jal Jeevan Mission <\/strong>have collectively elevated living conditions and overall well-being of people.<\/li>\n\n\n\n<li>Additionally, flagship programs like <strong>Pradhan Mantri Jan Dhan Yojana<\/strong> and <strong>PM Awas Yojana<\/strong> have played pivotal roles in financial inclusion and providing safe housing for the underprivileged.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source :IE<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In News<\/strong><\/h3>\n<li class=\"ms-5\">The latest Household Consumption Expenditure Surveys by the NSO for 2022\u201323 and 2023\u201324 show a sharp decline in poverty and a modest reduction in inequality in India.<\/li>\n<p><\/p>\n<h3><strong>What is Poverty?<\/strong><\/h3>\n<li class=\"ms-5\">Poverty refers to a condition where individuals are unable to meet their basic needs. Its definition and measurement vary across countries.\u00a0<\/li>\n<li class=\"ms-5\">In India, poverty is assessed by the number of people living below the Poverty Line, which represents a threshold income level.\u00a0<\/li>\n<li class=\"ms-5\">Households with consumption below this level are considered poor.\u00a0<\/li>\n<li class=\"ms-5\">The poverty line represents the minimum income level necessary to meet basic needs, and varies across countries depending on their overall economic conditions.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/29-05-2025\/poverty-fell-significantly-last-year\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44362","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=44362"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44362\/revisions"}],"predecessor-version":[{"id":44382,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44362\/revisions\/44382"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=44362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=44362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=44362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}