Figures of Hope

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(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
  • The Government of India has released long-awaited household consumption data for 2022–23 and 2023–24, enabling a fresh and credible estimation of poverty in the country. The World Bank and Indian policymakers have used this data to reassess poverty levels, revealing a significant decline in extreme poverty. This data marks a shift toward informed policy-making based on contemporary evidence rather than outdated estimates.

Background of Data Deficit and Poverty Measurement

  • For years, poverty estimation in India faced challenges due to the absence of updated consumption expenditure data.

  • The last official survey was in 2011–12; subsequent surveys were either delayed or withdrawn due to “data quality” concerns.

  • Alternative estimates from the CMIE and the World Bank attempted to fill the gap, but lacked government endorsement.

  • 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

  • According to the latest estimates by the World Bank, extreme poverty fell from 27.1% (2011–12) to 5.3% (2022–23).

  • The poverty line was adjusted from $2.15/day to $3/day to reflect updated purchasing power parity.

  • The number of extreme poor in India dropped from 344.7 million to 75.2 million.

  • Poverty in the lower-middle income group fell from 52.7% (2011–12) to 23.9% (2022–23), as per RBI calculations.

  • 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

  • India’s inequality as measured by the Gini coefficient and Thiel index showed moderation, suggesting relatively inclusive growth.

  • The consumption-based surveys also provide a better sense of real consumption patterns among different social groups and regions.

Implications for Welfare and Policy

  • The data strengthens the foundation for evidence-based policymaking.

  • Better targeting of social welfare schemes like PM Garib Kalyan Yojana, NFSA, PM-KISAN, and Ayushman Bharat becomes possible.

  • It aids states and districts in tailoring their development programmes to reflect localised deprivation.

  • 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
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:

  • Regular household consumption surveys must be institutionalized, at least once every five years.

  • Poverty lines should be dynamic and adjusted for inflation and cost-of-living changes.

  • Disaggregated poverty data (by caste, gender, geography) must be integrated with social audits.

  • 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)

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