India has witnessed a historic decline in poverty over the last decade, with significant improvements in both rural and urban areas. Shamika Ravi, a member of the Prime Minister’s Economic Advisory Council, highlighted these findings based on data comparing poverty rates from 2011-12 to 2023-24.

In a recent post on X (formerly Twitter), Ravi emphasized that both Hindu and Muslim populations have experienced rapid poverty reduction, marking a period of strong economic growth and social progress in India. She pointed to a “rapid convergence” between the two communities, both in urban and rural settings.

Poverty Reduction Across Religious Groups: Key Data Insights

According to the latest data, India’s poverty rates have seen a dramatic fall, particularly among the country’s Muslim population, which traditionally had a higher poverty rate than Hindus.

???? Rural India:

• Muslim poverty rate dropped from 31.7% in 2011-12 to just 2.4% in 2023-24.

• Hindu poverty rate fell from 30.9% in 2011-12 to 4% in 2023-24.

???? Urban India:

• Muslim poverty rate declined from 39.4% in 2011-12 to 5.7% in 2023-24.

• Hindu poverty rate dropped from 24.4% in 2011-12 to 3.7% in 2023-24.

These figures highlight an unprecedented improvement in economic conditions, driven by a mix of government policies, economic growth, and social welfare programs.

Rangarajan Poverty Line and Economic Growth Impact

Ravi’s analysis is based on the Rangarajan (2014) poverty line for 2011-12, with updated state-wise data from the Consumer Price Index for 2023-24. This measure provides a more realistic assessment of poverty reduction trends.

Experts believe India’s strong economic growth, improvements in financial inclusion, infrastructure, education, and social schemes have all contributed to this success. The government’s focus on rural development, entrepreneurship, and skill enhancement has helped uplift millions from poverty.

NITI Aayog’s Arvind Virmani: Absolute Poverty Nearly Eliminated

In March 2024, NITI Aayog member Arvind Virmani reinforced this trend, stating that absolute poverty in India is now nearly eradicated.

Virmani pointed to the USD 1.9 per day income benchmark, widely used for global poverty assessments. He noted that India’s absolute poverty rate has plummeted:

• From 12.2% in 2011-12 to 2.3% over 11 years.

• Further dropping to just 1% in 2024.

???? Why This Matters:
Virmani stated that the remaining 1% represents individuals in extremely remote or difficult-to-reach areas, requiring targeted interventions rather than broad policy changes. He emphasized that this group may need direct government assistance through special welfare programs.

Key Drivers of Poverty Reduction in India

???? Economic Growth & Industrial Expansion:
India’s GDP has expanded significantly, creating more job opportunities and lifting millions out of poverty. Sectors like technology, manufacturing, and services have played a key role.

???? Financial Inclusion & Digital Economy:
The Jan Dhan Yojana, Aadhaar-linked subsidies, and the growth of UPI payments have improved financial access, empowering people economically.

???? Social Welfare & Rural Development Programs:
Government schemes like PM-KISAN, MGNREGA, and affordable housing projects have helped rural populations secure incomes and improve living conditions.

???? Education & Skill Development:
The push for higher literacy rates, vocational training, and initiatives like Skill India have increased employment opportunities, particularly among youth.

???? Infrastructure Development:
Massive investments in roads, electricity, and digital connectivity have helped bridge urban-rural disparities, bringing better access to education, healthcare, and markets.

Challenges and the Road Ahead

Despite this remarkable progress, certain challenges remain:
???? Urban slums and informal workers still face economic hardships.
???? Healthcare affordability remains a concern for low-income groups.
???? Job creation must keep pace with India’s growing workforce.

Policymakers are now focusing on strategies to address these gaps, ensuring that India’s growth remains inclusive and benefits every section of society.

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