Poverty Rate in India: The number of very poor in India has decreased. Between 2011 and 2019, the number of extremely poor has decreased by 12.3 per cent and rural areas have outperformed urban centres. The World Bank has given information by issuing a report about this.
long time estimate
Economists Sutirth Sinha Roy and Roy van der Weid said the country has not released any official estimates of poverty and inequality for more than a decade. The survey based on the consumption of households was released by the NSS in 2011.
Free food grains are getting to the poor
Earlier, in a document of the International Monetary Fund (IMF), it was said that the Pradhan Mantri Garib Kalyan Anna Yojana has played an important role in keeping extreme poverty at a low of 0.8 percent in 2020 affected by the pandemic. Under this scheme, free food grains are being given to the poor from ration shops.
Poverty decreased in the last decade
“The reduction in poverty rates in rural areas is higher than in urban centres,” said the report, titled ‘Poverty in India has decreased over the last decade, but less than expected’. Urban poverty during demonetisation grew by 2 per cent in 2016 and then declined sharply. Rural poverty rose by 0.1 per cent in 2019, due to slowing economic growth.
“Our estimates of growth in consumption in the national accounts and poverty based on survey data have been more cautious than those projected earlier,” the report said, adding that 2015-2019 Poverty reduction during the period is projected to be lower than previously estimated, based on an increase in private final consumption expenditure.
The income of the holding farmers increased
The authors also noted that their analysis found no evidence of increasing inequality in consumption. According to the report, the income of smallholder farmers has increased more. Between the two survey rounds, the real income of these farmers has grown by 10 per cent year-on-year. At the same time, the income of farmers with large holdings has increased by two percent during this period. It states that families in villages with smaller farms are more likely to be poor than others.