In a significant milestone for India’s socio-economic landscape, the Brookings Institution, a renowned American think tank, has lauded the nation for its successful elimination of extreme poverty. The latest report authored by economists Surjit Bhalla and Karan Bhasin highlights India’s robust policy initiatives aimed at redistribution and fostering inclusive growth over the past decade as key drivers behind this remarkable feat.
The report presents compelling statistics showcasing a substantial decline in the headcount poverty ratio and a notable surge in household consumption, challenging previous estimates by the World Bank and indicating a lower number of impoverished individuals in the country.
One of the pivotal factors contributing to this success, according to the study, is the combination of high economic growth and a significant reduction in income inequality. The headcount poverty ratio at the purchase power parity $1.9 level has plummeted from 12.2% in 2011-12 to a mere 2% in 2022-23, underscoring the effectiveness of India’s anti-poverty measures.
The authors attribute the elevated consumption growth in rural areas to the government’s unwavering commitment to redistribution. Publicly funded initiatives such as the national mission for constructing toilets and the drive for universal access to electricity, modern cooking fuel, and piped water have played a pivotal role in uplifting the rural population.
Highlighting the impact of these policies, the report notes a significant increase in rural access to piped water, from 16.8% in August 2019 to an impressive 74.7% at present, reflecting the tangible benefits of targeted government interventions.
The elimination of extreme poverty in India not only holds positive implications for global poverty rates but also underscores the need for the nation to graduate to a higher poverty line, signaling its progress towards broader socio-economic development goals.
Against the backdrop of global economic challenges, with economies like Japan and the UK slipping into recession, India emerges as a beacon of opportunity for investors. Projections from the International Monetary Fund suggest that India is poised to overtake both Japan and Germany in terms of economic output, with estimates placing the shift in 2026 and 2027, respectively.
As India continues on its path of economic growth and poverty eradication, it stands as a shining example of effective policy implementation and inclusive development strategies. With a promising future ahead, India’s success story serves as an inspiration for nations worldwide grappling with the challenge of poverty alleviation.
Frequently Asked Questions (FAQs):
What is India’s current poverty rate?
The Poverty rate in India has declined to 4.5-5%.
What is the poverty rank of India?
India ranks 111 among 125 countries when it comes to the Global Hunger Index (GHI) 2023. This could be taken as the poverty rank of India in the world.
