Poverty rate below 5%: SBI Report

Poverty rate below 5%: SBI Report

According to an SBI Report, India’s poverty rate fell below 5% in 2024, with extreme poverty nearly eradicated, based on inflation-adjusted estimates from the 2011-12 poverty line by the Suresh Tendulkar committee.

  • Rural poverty: Decreased to 4.86% in FY24 from 7.2% in FY23 and 25.7% in FY12.
  • Urban poverty: Dropped to 4.09% from 4.6% in FY23 and 13.7% in FY12.
  • Reasons behind Improvement: Higher consumption growth among the bottom 5% of the population caused a shift in the poverty line.
  • Poverty Line: The minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs.
  • Classification: Individuals with income levels below these thresholds are classified as poor.
  • Inference from the Chart: Poverty line is consistently higher in urban areas across all methodologies.
  • Lakdawala Committee (1993): Recommended calculating poverty based on consumption expenditure related to calorie intake.
  • Tendulkar Committee (2009): Shifted from calorie-based poverty lines to a uniform all-India urban Poverty Line Basket.
  • Rangarajan Committee (2014): Reinstated separate rural and urban poverty lines and state-specific estimates.

Source: DDN


Previous Year Question

With reference to casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?

[UPSC CSE – 2021 Prelims]

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (b)


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