India’s Poverty Declines by 6.7% in Just One Year: A Milestone for Modi Govt

Key Highlights:

• Poverty in India dropped from 21.8% to 15.1% in 2023, marking a 6.7% reduction in just one year.
• Over 9 crore Indians were lifted out of poverty, indicating all-round inclusive development.
• Extreme poverty (below $1.9 PPP) is nearly eliminated, now at just 0.9% of the population.
• Income inequality is reducing, with a narrowing gap between rural and urban consumption.

India’s Progress in Poverty Reduction

Recent Household Consumption Expenditure Surveys (HCES) for 2022-23 and 2023-24 indicate a significant socio-economic shift. US-based economist Karan Bhasin, who was involved in analyzing the data, called it a major achievement, highlighting that over 9 crore people moved above the poverty line in just one year.

Three major trends emerge from the survey:

1. Extreme poverty has almost disappeared (only 0.9% of the population remains below the extreme poverty line).
2. Overall poverty has dropped sharply, now standing at 15.1% of the population (those living below $3.2 per day, adjusted for purchasing power parity).
3. Consumption inequality is decreasing, meaning the wealth gap between rural and urban India is shrinking.

Political Impact: BJP vs. Opposition

The BJP government sees this as a validation of its welfare policies, while the Congress-led opposition has been accusing it of crony capitalism. BJP National Spokesperson Pradeep Bhandari took a dig at Congress, stating:

“For 70 years, Congress spoke about ‘Garibi Hatao’ (remove poverty) but kept the poor as poor, while PM Modi lifted 25 crore people out of poverty.”

The Winter Session of Parliament saw opposition attacks on the BJP over the Adani issue and alleged corporate favoritism. However, PM Modi dismissed these claims, asserting that there was no foreign interference this time, referencing past Hindenburg reports that fueled opposition criticism.

What’s Next for India’s Economic Transition?

India is gradually moving from a low-income nation to a lower-middle-class country, but economist Karan Bhasin suggests rethinking welfare policies. Instead of broad-based free ration schemes, he advocates for better-targeted nutrition programs to ensure a healthier population.

With poverty declining at a record pace, India is on track to strengthen its middle class and reduce economic disparities, marking a major success for the Modi government’s development policies.