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New Delhi: NITI Aayog CEO, BVR Subrahmanyam, has declared that poverty in India has declined to below 5%, citing the latest Household Consumption Expenditure Survey (HCES) conducted between August 2022 and July 2023. The survey, a key metric for evaluating the success of poverty reduction initiatives, indicates a notable increase in consumption, with both rural and urban areas experiencing significant growth.
According to the HCES findings, the average monthly per capita consumption expenditure (MPCE) in urban households rose by 33.5% since 2011-12 to ₹3,510, while rural India witnessed a substantial 40.42% increase, reaching ₹2,008. BVR Subrahmanyam emphasized that based on this data, poverty levels in the country could be closer to 5% or less.
A noteworthy shift in spending patterns, particularly in terms of food expenditure, was observed in the survey. Rural households, for the first time, allocated less than 50% of their total expenditure to food. The survey also highlighted a reduction in the urban-rural consumption divide from 91% in 2004-05 to 71% in 2022-23, indicating a decrease in inequality.
Mr. Subrahmanyam pointed out that the survey did not factor in benefits like healthcare under the Ayushman Bharat scheme and free education, suggesting that destitution and deprivation have nearly disappeared. The findings of the HCES reflect a positive trend in poverty reduction and improved living standards in India.
