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Key Points

India is making significant strides in reducing poverty through innovative economic strategies and improved data collection methods. The State Bank of India's latest report indicates a promising decline in poverty rates from 5.3% to 4.6% in 2024. This improvement is attributed to revised survey techniques like the Modified Mixed Recall Period (MMRP) method, which provides a more accurate picture of household consumption. The World Bank's methodology changes have further highlighted India's positive economic trajectory, with the country actually helping reduce the global poverty count by 125 million.

Key Points: India Poverty Rate Drops to 4.6% in 2024 SBI Economic Breakthrough

  • Poverty rate falls from 5.3% to 4.6% in 2024
  • New data collection methods improve accuracy
  • World Bank methodology revision impacts global poverty count
  • Welfare schemes contribute to economic improvement
2 min read

India's poverty rate likely to decline further to 4.6% in 2024 from 5.3% in 2023: SBI Report

SBI report reveals India's poverty rate declining to 4.6% in 2024, showcasing remarkable economic progress through innovative data methods.

"Poverty estimates by SBI and World Bank are remarkably similar - SBI Report"

New Delhi, June 10

India's poverty continues to decline steadily, with the poverty rate likely to fall to 4.6 per cent in 2024, estimates a recent report by the State Bank of India (SBI).

This marks a significant improvement from the 5.3 per cent poverty rate estimated by the World Bank for India in 2023.

The report said "Poverty estimates by SBI and World Bank are remarkably similar.... SBI estimates it at 4.6 per cent in 2024...down from 5.3 per cent in 2023 as estimated by World Bank".

The report highlighted that the country has made remarkable progress in reducing poverty, and its latest estimate shows a further fall from the World Bank's assessment.

The decline in poverty is largely supported by new methods of data collection and updated definitions. India's recent Household Consumption Expenditure Survey (HCES) adopted the Modified Mixed Recall Period (MMRP) method, replacing the older Uniform Reference Period (URP).

As per report, this new method uses shorter recall periods for items that are purchased more frequently, providing a more accurate picture of household consumption.

As a result, recorded consumption in national surveys have gone up, which in turn has lowered the estimated poverty levels. For instance, in 2011-12, using MMRP reduced India's poverty rate from 22.9 per cent to 16.22 per cent under the older USD 2.15 per day poverty line.

In the 2022-23 survey, poverty stood at just 5.25 per cent under the new hiked USD 3.00 per day poverty line, and even lower at 2.35 per cent under the old USD 2.15 line.

The World Bank recently revised the global poverty line from USD 2.15 per day (2017 PPP) to USD 3.00 per day (2021 PPP), which initially increased the global count of people in extreme poverty by 226 million.

However, India emerged as a statistical outlier in a positive way. Thanks to its revised consumption data and improved survey methods, India's updated figures actually helped reduce the global poverty count by 125 million.

The SBI report noted that recent estimates for India's poverty ratio are comparable with World Bank's numbers, after making adjustments for differences in methodology and definitions.

The continued fall in India's poverty rate highlights the success of its economic reforms, targeted welfare schemes, and improved data systems.

- ANI

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Reader Comments

R
Rahul K.
This is great news! But I hope this translates to actual improvement in people's lives. In my village in Bihar, many still struggle for basic needs. The numbers look good, but implementation of schemes needs to reach grassroots. 👍
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Priya M.
The new data collection methods seem promising! Changing from URP to MMRP makes sense - who remembers exactly what they bought 30 days ago? More accurate data means better policies. Hope this progress continues!
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Arjun S.
While the numbers are encouraging, we must remember inflation is eating into people's purchasing power. My chaiwala bhaiya says his expenses have doubled but income hasn't kept pace. Stats don't always show ground reality.
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Neha T.
Proud to see India reducing global poverty count by 125 million! Our welfare schemes like PMAY, Ujjwala, and food security programs are making a difference. But let's not become complacent - the last mile is always toughest. 🇮🇳
S
Sanjay P.
Interesting how changing the poverty line from $2.15 to $3.00 affects numbers. But what really matters is whether people have enough for roti, kapda, makaan. In Mumbai slums, many still live hand-to-mouth despite these statistics.
K
Kavita R.
The report is promising, but we must ensure inclusive growth. Rural women, tribal communities, and daily wage workers often get left behind in these averages. Quality jobs and education are key to sustaining this progress.
V
Vikram D.

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