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Business News/ News / India/  PM Modi govt's ‘strong policy thrust’ led India to officially eliminate 'extreme poverty': US Report. 10 things to know

PM Modi govt's ‘strong policy thrust’ led India to officially eliminate 'extreme poverty': US Report. 10 things to know

India officially eliminates extreme poverty as per Brookings report, highlighting sharp decline in headcount poverty ratio and rise in household consumption

India officially eliminates extreme poverty as per Brookings report (ANI)Premium
India officially eliminates extreme poverty as per Brookings report (ANI)

In a considerable milestone, US-based think tank cited that India has now officially eliminated ‘extreme poverty’ and PM Narendra Modi government's ‘strong policy thrust on redistribution’ should be credited for it. The report is prepared by the think tank Brookings and authored by Surjit Bhalla and Karan Bhasin. 

Here are 10 big takeaways from the report: 

  • India has now officially eliminated 'extreme poverty', which can be seen through the sharp decline in headcount poverty ratio and stark increase in household consumption
  •  The government's strong policy thrust on redistribution should be credited for it “which has led to strong inclusive growth in India over the last decade."
  • Official consumption expenditure data for 2022-23, which was released recently, shows, real per capita consumption growth has been recorded at 2.9% per year since 2011-12. Under this, rural growth at 3.1% was significantly higher than urban growth of 2.6%. The report is the ‘first official survey-based poverty estimates for India in over ten years.’
  • The report said relatively higher consumption growth in rural areas should not come as a surprise given the "strong policy thrust on redistribution through a wide variety of publicly funded programmes."
  • The data also presented an unprecedented decline in both urban and rural inequality.
  • These two factors, i.e. high growth and large decline in inequality, have worked in combination to eliminate poverty in India for the Purchasing Power Parity USD 1.9 poverty line, as per Brookings. 
  • The data show a strikingly lower number of poor people in India, at both thresholds, than those estimated by the World Bank.
  • Notably, these estimates do not take into account the free food (wheat and rice) supplied by the government to approximately two-thirds of the population, nor utilization of public health and education, the think tank stated.
  • According to Brookings, measures like national mission for the construction of toilets and attempts to ensure universal access to electricity, modern cooking fuel, and, more recently, piped water, are among the policies that thrived consumption.
  • The rural access to piped water in India as of August 15, 2019 was 16.8% and at present it is 74.7%, which has significantly helped in the improvement of the general health of the public. 
  • "Official data now confirms that India has eliminated extreme poverty, as commonly defined in international comparisons. This is an encouraging development with positive implications for global poverty headcount rates," the Brookings report stated.


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Sanchari Ghosh
Sanchari Ghosh is a Chief Content Producer with LiveMint. She covers news, human interest, epidemiology and personal finance stories
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Published: 02 Mar 2024, 01:09 PM IST
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