NEW DELHI: In a remarkable development, rural poverty in India has significantly declined to 4.86% in the fiscal year ending March 2024, down from 25.7% in 2011-12 said a SBI research released on Friday. This substantial reduction is primarily attributed to government support programs and increased consumption growth in the lowest income deciles. Urban poverty has also seen a notable decline, dropping to 4.09% from 13.7% in 2011-12.

The State Bank of India (SBI) research highlights that the decline in rural poverty is a result of higher consumption growth, driven by significant government support. Initiatives such as direct benefit transfers (DBT), infrastructure development, and augmenting farmers' income have played a crucial role in improving rural livelihoods. Enhanced physical infrastructure has also contributed to narrowing the rural-urban income gap.

Reflecting the change Prime Minister Narendra Modi said Saturday that the government’s efforts to empower rural India and its focus on growth and development of the rural economy over the last 10 years have yielded positive results, and rural development will continue to be a key priority for his government, which is working with the mantra: “gaon ke vikas se rashtra ka vikas” (national development through rural development).

Speaking at the inauguration of the Grameen Bharat Mahotsav in the Capital, Modi said the government’s vision is to empower rural India by transforming villages into vibrant centres of growth and opportunity. Taking a swipe at the Opposition, he said while previous governments could have brought significant positive changes in rural India, villages were deprived of basic services for decades.

The latest Household Consumption Expenditure Survey, released by the Ministry of Statistics & Programme Implementation, indicates a decline in consumption inequality in both rural and urban areas during the August 2023-July 2024 period compared to the previous year. The survey reveals that the rural poverty rate has dropped to 4.86% in 2023-24 from 7.2% in FY23 and 25.7% in FY12. Similarly, urban poverty is estimated at 4.09% in 2023-24, down from 4.6% in FY23 and 13.7% in 2011-12.

The SBI research suggests that poverty rates in India could now be in the range of 4-4.5%, with almost minimal existence of extreme poverty. The difference between rural and urban monthly per capita consumption expenditure (MPCE) has also decreased, reflecting the positive impact of government initiatives.

While these figures are promising, it is essential to continue monitoring and addressing the underlying issues that contribute to poverty. Ensuring sustainable economic growth, improving access to education and healthcare, and promoting inclusive development are crucial steps towards further reducing poverty in both rural and urban areas.

The SBI report also said, "We believe urban poverty could decline even further. At an aggregate level, we believe poverty rates in India could now be in the range of 4-4.5 per cent with almost minimal existence of extreme poverty."