Figures of Hope
(Source: The Indian Express, Editorial Page)
Also Read: The Indian Express Editorial Analysis: 09 June 2025
Also Read: The Hindu Editorial Analysis: 09 June 2025
Topic: GS2 (Welfare Schemes, Governance), GS3 (Inclusive Growth, Poverty, Data Governance) |
Context |
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Background of Data Deficit and Poverty Measurement
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For years, poverty estimation in India faced challenges due to the absence of updated consumption expenditure data.
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The last official survey was in 2011–12; subsequent surveys were either delayed or withdrawn due to “data quality” concerns.
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Alternative estimates from the CMIE and the World Bank attempted to fill the gap, but lacked government endorsement.
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With the release of the 2022–24 data, India can now rely on official metrics for assessing poverty and inequality.
Findings from the New Consumption Surveys
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According to the latest estimates by the World Bank, extreme poverty fell from 27.1% (2011–12) to 5.3% (2022–23).
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The poverty line was adjusted from $2.15/day to $3/day to reflect updated purchasing power parity.
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The number of extreme poor in India dropped from 344.7 million to 75.2 million.
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Poverty in the lower-middle income group fell from 52.7% (2011–12) to 23.9% (2022–23), as per RBI calculations.
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Multidimensional poverty also saw a steep fall from 55.3% (2005–06) to 14.95% (2019–21) based on NITI Aayog data.
Improvements in Inequality Metrics
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India’s inequality as measured by the Gini coefficient and Thiel index showed moderation, suggesting relatively inclusive growth.
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The consumption-based surveys also provide a better sense of real consumption patterns among different social groups and regions.
Implications for Welfare and Policy
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The data strengthens the foundation for evidence-based policymaking.
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Better targeting of social welfare schemes like PM Garib Kalyan Yojana, NFSA, PM-KISAN, and Ayushman Bharat becomes possible.
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It aids states and districts in tailoring their development programmes to reflect localised deprivation.
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It will also assist in monitoring the effectiveness of schemes under the Sustainable Development Goals (SDGs) framework.
Summary of Key Poverty Trends Based on Latest Data:
Metric | 2011–12 | 2022–23 |
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Extreme Poverty (%) | 27.1% | 5.3% |
Number of Extreme Poor (mill) | 344.7 million | 75.2 million |
Lower-Middle Income Poverty (%) | 52.7% | 23.9% |
Multidimensional Poverty (%) | 55.3% (2005–06) | 14.95% (2019–21) |
Poverty Line Used (PPP $/day) | $2.15 | $3.00 |
Way Forward:
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Regular household consumption surveys must be institutionalized, at least once every five years.
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Poverty lines should be dynamic and adjusted for inflation and cost-of-living changes.
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Disaggregated poverty data (by caste, gender, geography) must be integrated with social audits.
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Independent verification and public access to data will strengthen trust in policymaking.
Practice Question:
“India’s foreign policy must transition from tactical responses to long-term strategic calibration.” Discuss in the context of recent military operations and shifting global alignments. (GS Paper 3 | 250 words | 15 marks) |