How Poor Are Indians? Here’s What Latest Survey Says On Poverty In India

Research paper by the NCAER observed that traditional approaches aimed at alleviating widespread poverty may lose effectiveness as factors unrelated to one's birth increasingly shape outcomes.

NCAER paper utilised data from the India Human Development Survey. (Image Source: Pexels)

Eradicating poverty has been one of the biggest challenges that India has faced. Even though it posed numerous new challenges during the pandemic, things are getting better now. According to a research paper by the National Council of Applied Economic Research (NCAER), titled 'Rethinking Social Safety Nets in a Changing Society', poverty in India is estimated to have declined to 8.5 per cent during 2022-24 from 21.2 per cent in 2011-12, despite several challenges. 

The paper utilised data from the newly completed Wave 3 of the India Human Development Survey (IHDS), as well as data from Waves 1 and 2 of the IHDS.

"According to the IHDS findings...poverty declined significantly between 2004-2005 and 2011-12 (from a headcount ratio of 38.6 to 21.2), and it continued to decline between 2011-12 and 2022-24 (from 21.2 to 8.5) despite the challenges posed by the pandemic," the paper states.

The paper emphasised that economic growth and the reduction of poverty necessitate agile social protection programs to adapt to changing conditions.

'Accidents Of Birth More Likely To Affect Long-Term Chronic Poverty'

The paper observed that traditional approaches aimed at alleviating widespread poverty may lose effectiveness as factors unrelated to one's birth increasingly shape outcomes. It underscored the importance of adapting social protection systems to match the pace of societal changes, presenting a critical challenge for India in its pursuit of inclusive growth.

As economic opportunities expand during periods of growth, the enduring factors influencing poverty may diminish, while unforeseen events such as natural calamities, health crises, shifts in job opportunities, and other life circumstances may gain prominence. “Accidents of birth are more likely to affect long-term chronic poverty; accidents of life may have a transitory effect on moving in and out of poverty," the report states.

Previously, NITI Aayog CEO B V R Subrahmanyam stated that the latest consumer expenditure survey shows a decline in poverty to 5 per cent across the country, signalling increased prosperity in both rural and urban areas.