J&K Poverty Drops to 4.8%, NITI Aayog Data Shows Major Improvement

Niti Aayog's MPI measures simultaneous deprivations across health, education and standard of living using 12 indicators.

Based on NFHS data, it acts as a policy tool for monitoring poverty. Recent data shows a significant decline with 24.82 crore people escaping poverty between 2013-14 and 2022-23, and the headcount ratio dropping from 29.17 per cent to 11.28 per cent.

Over the last seven years, J&K has recorded a considerable decline in poverty from 12.56 per cent to 4.8 per cent as per the most recent National MPI statistics.

Last year, some experts questioned the credibility of NITI Aayog's MPI figures simply because of the dependence of people in the union territory on PDS.

This concern arose from the fact that nearly 50 per cent of Kashmir's population relied on the government's Public Distribution Systems (PDS) for food and financial assistance. PDS played the primary role of providing sustenance for these members who lacked stable means of livelihood.

An August 2025 report from Kashmir's Department of FCS&CA exhibits that 98.64 lakh beneficiaries receive foodgrains every month. Thus, social workers felt that Kashmir's citizens still lacked credible means to overcome poverty and mere survival.

These experts primarily focused their attention on food availability and people's dependence on PDS. They almost completely ignored the fact that, except for those living below the poverty line, foodgrains made available to people in J&K through PDS are not given at the subsidised rates anymore. People are supplied with good grains by the PDS department, except those under the poverty line, at competitive rates and also in quantities much less than the family's total monthly consumption.

These experts completely missed the point as to where the people in J&K meet the shortfall in their monthly food grain consumption. The fact is that the Kashmir Valley has very little cultivable paddy land since rice is the staple food of the Valley.

Exponential growth in population, lateral expansion of cities and towns, railways, road expansion, electric transmission towers, acquisition of land for public purposes, and the non-viability of agriculture vis-a-vis expenditure and income have caused a huge decline in paddy cultivation.

People have been abandoning the cultivation of food grains by diversifying into more lucrative professions and businesses. This has increased their buying power and standard of living to an extent that is truly indicated by the NITI Aayog's MPI index, which shows a decline in poverty.

The fact is that a large part of the Jammu and Kashmir population is no longer starving. The lifestyle of the population has undergone major changes over the last five years.

Dependency on PDS can be reduced by using the right strategies, but lives getting saved and hunger being eradicated are commendable feats. Reducing PDS Dependency: Kashmir's local and central leadership has made notable progress in eradicating poverty.

The government is now focusing increasingly on employment and entrepreneurship. Representatives are turning their attention towards schemes which help increase the means of livelihood and income stability. Funds are now being curtailed in PDS and channelised into central flagship schemes to help employment, businesses and professions so that people achieve stability while poverty keeps declining.

- IANS