Introduction

Poverty is a complex issue that extends beyond income levels, affecting access to food, healthcare, education, and housing. Over the past decade, India has witnessed a significant reduction in poverty, with improvements seen across rural and urban areas. This shift has been influenced by various factors, including economic growth, social welfare programs, and policy interventions aimed at addressing multiple dimensions of poverty.

• To assess these changes, data from the Household Consumption Expenditure Survey (HCES) and the Multidimensional Poverty Index (MPI) provide insights into trends in poverty reduction. These reports highlight how different social and religious groups, as well as historically disadvantaged communities, have experienced shifts in poverty levels. The findings indicate a narrowing gap between various demographic groups, reflecting broader progress in economic and social development.
• While the reduction in poverty is a positive development, sustained efforts will be required to maintain this progress. Ensuring continued improvements in education, employment opportunities, infrastructure, and social protection measures will be essential to prevent poverty relapse and support long-term economic stability.

Understanding Household Consumption Expenditure Surveys

To analyze post-pandemic consumption trends, the Ministry of Statistics and Programme Implementation (MoSPI) conducted two consecutive Household Consumption Expenditure Surveys (HCES) for 2022-23 and 2023-24. The first survey, conducted between August 2022 and July 2023, had its summary released in February 2024, followed by a detailed report in June 2024. The second survey, covering August 2023 to July 2024, was released recently.

HCES collects data on household spending patterns to assess economic well-being, update the Consumer Price Index (CPI), and measure poverty and inequality. The 2023-24 survey covers 2,61,953 households across rural and urban areas.

To assess poverty trends, the study uses the C. Rangarajan Expert Group's 2014 recommended poverty line, even though it was not officially adopted by the Government of India. This poverty line is based on:

1.    Modified Mixed Recall Period (MMRP): A detailed method for collecting household expenditure data, considered more accurate by experts.

2.   Nutritional Standards: The food component is determined by calorie intake requirements set by the Indian Council of Medical Research (ICMR).

3.    Non-Food Components: Greater emphasis is placed on essential needs such as education, housing, fuel, clothing, and healthcare, particularly in urban areas.

For 2023-24, state and Union Territory (UT) poverty lines were updated using the Consumer Price Index (CPI). The analysis relies on nationally representative survey data from over 1 lakh households in 2011-12 and 2.5 lakh households in 2023-24, both conducted by MoSPI.

Overall Trends in Poverty Reduction (2011-12 to 2023-24)

The findings indicate a significant decline in poverty across India over the past 12 years:

• Rural poverty decreased from 30.4% to 3.9%.
• Urban poverty declined from 26.4% to 3.9%.

Poverty Reduction among Religious Groups

Poverty has declined across all religious communities, with particularly notable reductions among Hindus and Muslims:

Rural Areas:

·         In 2011-12, the Muslim poverty rate was 31.7%, slightly higher than Hindu poverty at 30.9% (a 0.8 percentage point gap).

·         By 2023-24, Muslim poverty had fallen to 2.4%, while Hindu poverty declined to 4%, reversing the gap to -1.6 percentage points.

Urban Areas:

·         In 2011-12, Muslim poverty was 39.4%, significantly higher than Hindu poverty at 24.4% (a 15 percentage point gap).

·         By 2023-24, Muslim poverty had dropped to 5.7%, while Hindu poverty declined to 3.7%, reducing the gap to just 2 percentage points.

The decline in Muslim poverty (33.7 percentage points) was steeper than for Hindus (20.7 percentage points), indicating a faster rate of poverty reduction among Muslims.

Poverty Reduction across Social Groups

Rural Areas:

• Scheduled Tribes (ST): Poverty dropped from 49.5% in 2011-12 to 12.2% in 2023-24. The ST-General category poverty gap narrowed from 29.5 percentage points to 10.6 percentage points.
• Scheduled Castes (SC): Poverty fell from 45.5% to 8.6%, reducing the SC-General poverty gap from 17.4 percentage points to 2.6 percentage points.
• Other Backward Classes (OBC): Poverty declined from 30.4% to 3.6%.

Urban Areas:

• SC Population: Poverty dropped from 39.6% to 6.6% (a 33 percentage point decline). The SC-General poverty gap narrowed from 20 percentage points to 4.1 percentage points.
• ST Population: Poverty declined from 38.2% to 9.9%, with the ST-General category gap reducing from 21.5 percentage points to 7.4 percentage points.
• OBC Population: Poverty decreased significantly, from 30.4% to 3.6%.

Key Takeaways and Policy Implications

1.    Widespread Poverty Reduction: The overall decline in poverty across all religious and social groups reflects the broad effectiveness of economic growth and government policies.

2.    Notable Gains for Marginalized Communities: The most significant improvements were observed among Muslims, SCs, and STs, reducing historical inequalities.

3.    Convergence between Groups: The narrowing poverty gaps indicate increasing economic parity across social and religious categories.

4.    Government Policy Impact: Various welfare schemes, direct benefit transfers, and social protection programs have played a pivotal role in these trends.

5.    Progress Toward Sustainable Development Goals (SDGs):

o    SDG 1 (No Poverty): Expanding social protection and employment.

o    SDG 2 (Zero Hunger): Ensuring food security through the Public Distribution System (PDS) and agricultural reforms.

o    SDG 3 (Good Health and Well-Being): Strengthening universal health coverage under Ayushman Bharat.

o    SDG 10 (Reduced Inequalities): Promoting financial inclusion and equitable access to resources.

Strategies for Sustaining Progress

1.    Social Protection and Welfare: Expand pension coverage for elderly, widows, and disabled individuals, ensuring 100% healthcare access and social safety nets for Below Poverty Line (BPL) families.

2.    Employment and Livelihoods: Strengthen employment generation under MGNREGA, conduct skill mapping through District Kaushal Kendras, and provide targeted training.

3.    Women’s Empowerment: Enhance female participation in decision-making and economic activities.

4.    Infrastructure Development: Improve roads, schools, and community centers to boost economic mobility and service accessibility.

5.    Digital and Financial Inclusion: Ensure full digital registration of farmers on platforms like eNAM (National Agriculture Market) for real-time access to government schemes.

6.   Disaster Preparedness and Climate Action: Establish a Task Force for Disaster Risk Reduction (DRR) and promote climate-resilient agriculture via Krishi Vigyan Kendras (KVKs).

Conclusion

India has made significant progress in reducing poverty over the past decade, particularly among disadvantaged communities. This progress reflects efforts in economic growth, social welfare programs, and policy reforms aimed at improving living conditions. However, to sustain and build on these achievements, continued focus on economic inclusion, education, healthcare, and employment opportunities is essential.

The findings highlight that democracy is not just about conducting elections but also about ensuring real improvements in people's lives. Good governance must focus on policies that promote equal opportunities and uplift all sections of society, especially the most vulnerable.