Poverty and Inequality Trends: 2011-12 to 2023-24
The Household Consumption Expenditure Surveys by the National Statistics Office (NSO) for 2022-23 and 2023-24 provide insights into recent poverty and inequality trends in India.
Poverty Lines and Estimates
- The poverty lines for rural areas increased from Rs 972 in 2011-12 to Rs 1,940 in 2023-24, while for urban areas, it rose from Rs 1,407 to Rs 2,736 in the same period.
- The total poverty ratio (rural and urban) declined from 29.5% in 2011-12 to 4.9% in 2023-24.
- Extreme poverty, as per World Bank standards, reduced from 16.2% in 2011-12 to 2.3% in 2022-23.
Factors Influencing Poverty Decline
- GDP growth increased from 7.6% in 2022-23 to 9.2% in 2023-24.
- The Consumer Price Index (CPI) decreased from 6.7% to 5.4% during the same period.
- Food inflation slightly increased from 6.6% to 7.5%.
Depth of Poverty and Inequality
Analysis shows significant poverty reduction even when using higher poverty line cut-offs (up to 150%).
- The poverty ratio decreased by 24.6 percentage points between 2011-12 and 2023-24.
- More than 50% of the poor lie between the third and fourth quarter of the poverty line.
Inequality Trends
- The Gini coefficient fell from 0.310 in 2011-12 to 0.253 in 2023-24, indicating reduced inequality.
- There was a notable decline in inequality between 2022-23 and 2023-24, with the Gini coefficient dropping by 0.029 points.
Conclusion
While there is a notable decline in poverty and inequality, further confirmation is needed to determine if these trends will continue. Most poor individuals are concentrated around the poverty line, suggesting manageable poverty levels.
