India’s poverty rate : SBI Report

India’s poverty rate fell below 5% in 2024, with extreme poverty nearly eradicated, according to an SBI Research report. 

• 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.
• The decline is attributed to higher consumption growth among the bottom 5% of the population, leading to a shift in the poverty line.
• The poverty line represents the minimum expenditure required to purchase a basket of goods and services necessary to satisfy basic human needs.
• Individuals with income levels below these thresholds are classified as poor.

Poverty Estimation in India (Major Committees):

• Lakdawala Committee (1993):Recommended calculating poverty based on consumption expenditure related to calorie intake.
• Tendulkar Committee (2009):Shifted away from calorie-based poverty lines and introduced a uniform all-India urban Poverty Line Basket.
• Rangarajan Committee (2014):Reinstated separate rural and urban poverty lines and state-specific estimates.