SBI Report Cheers for a Better India With a 5% drop of ‘Rural Poverty’ in 2024
India is a country with a dense population in which 63.4 percent of the population live in the rural areas and only 36.6 percent of the population belong to the urban regions according to the data given by the Global Digital Insights. So, the economy and the poverty of these populations determine the nation’s future visions for a progressive economy.
On Friday, the report of SBI states that the percentage of rural poverty has met with a 5% decline in the fiscal year 2024 along with the fall of poverty rate to 4.86 percent from 7.2 percent of 2023. Similarly, urban poverty has also fallen to 4.09 percent in 2024 from 4.6 percent of previous year. The reasons behind this decline are the improved economic conditions and the higher consumption growth of the rural population.
“Around 30 percent of the rural monthly per capita expenditure (MPCE) is explained by factors that are endogenous to the rural ecosystem. Such endogenous factors are mostly due to the initiatives the government has taken in terms of DBT transfers, building rural infrastructure, augmenting farmer’s income, and improving rural livelihoods significantly. It is possible that these numbers may be subject to slight revisions once the 2021 census is completed and updated rural-urban population data is released. We anticipate that urban poverty could decline further. At a national level, we estimate poverty rates in India are now between 4 percent and 4.5 percent, with extreme poverty nearly eliminated” – SBI Report
The Household Consumption Survey results clearly states that the uplifting physical infrastructure of the government is setting a new story for a better India by bridging the gap between rural and urban areas and the vertical income gap within the rural income classes.
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