24.82 crore people came out of poverty in India in nine years: reports

A report by Niti Aayog, released on January 15, predicts that poverty in India will drop from 29.17% in 2013-14 to 11.28% in 2022-23. This means about 24.82 crore people will escape poverty during this period. The biggest reductions in poverty were seen in Uttar Pradesh, Bihar, and Madhya Pradesh.

The report, titled ‘Multidimensional Poverty in India since 2005-06’, reveals that India registered a significant decline in multidimensional poverty from 29.17 per cent in 2013-14 to 11.28 per cent in 2022-23 – a reduction of 17.89 percentage points.

The report assesses the poverty levels in the year 2013-14 against the current scenario (i.e. for the year 2022-23) using projected estimates, due to the limitations of data for the specific periods.

The study also revealed that the poverty headcount ratio declined much faster from 2015-16 to 2019-21 (10.66 per cent annual rate of decline) according to the exponential method, compared to the period from 2005-06 to 2015-16 (7.69 per cent annual rate of decline).

During the entire study period, all 12 indicators of the Multidimensional Poverty Index (MPI) recorded significant improvement. On Monday, Prof Ramesh Chand, a member of NITI Aayog, released the report in the presence of BVR. Subrahmanyam, CEO, NITI Aayog. The Oxford Policy and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) provided technical inputs for this paper.

Improving living standards reduces poverty

NITI Aayog explains that improving health, education, and living standards can reduce multidimensional poverty. These areas are also part of the 12 sustainable development indicators, which include things like nutrition, child and teen death rates, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.

The National Multidimensional Poverty Index (MPI) of NITI Aayog uses the Alkire Foster method to estimate the drop in poverty rates. The national MPI has 12 indicators, while the global MPI has 10.

Using a 7.69% annual reduction rate, the 2013-14 poverty estimate is 29.17%. Projecting forward with a 10.66% annual reduction rate from 2015-16 to 2019-21, the 2022-23 estimate is 11.28%. This suggests India is well ahead of the goal to reduce multidimensional poverty by half by 2030.

The estimated change in the headcount ratio from 2013-14 to 2022-23 is 17.89 percentage points, meaning about 24.82 crore individuals have escaped multidimensional poverty during this 9-year period.

Many escaped poverty in India

At the state level, Uttar Pradesh saw the most people (5.94 crore) escape poverty. Bihar and Madhya Pradesh followed, with 3.77 crore and 2.30 crore people leaving poverty, respectively. All 12 indicators of the MPS saw significant improvements during this period.

NITI Aayog member Ramesh Chand, quoting the report, said that in nine years, 24.82 crore people have escaped multidimensional poverty. This means every year, 2.75 crore people are escaping poverty. NITI Aayog CEO BVR Subramaniam said in the report that the government’s goal is to reduce multidimensional poverty to below one percent.

The report said the rate of poverty reduction has sped up from 2013-14 to 2022-23. Many government programs aimed at improving specific areas have made this possible. The report also said that India could achieve the Sustainable Development Goal (SDG) 1.2 (reduce multidimensional poverty by at least half) well before 2030.

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