Brookings Report: India under PM Modi's Leadership Successfully Eradicates 'Extreme Poverty

In a groundbreaking revelation, a recent report by the US-based think tank Brookings declared that India has successfully eradicated 'extreme poverty'.

Crediting the policies of the Narendra Modi government, particularly its robust focus on redistribution, the report signifies a monumental achievement for the nation. Authored by Surjit Bhalla and Karan Bhasin, the report sheds light on India's remarkable strides in combating poverty.

Key Takeaways from the Report

Elimination of Extreme Poverty

India's official elimination of 'extreme poverty' is evidenced by a notable decline in the headcount poverty ratio and a significant surge in household consumption, reflecting improved living standards.

Government's Policy Thrust

The report attributes India's success in poverty alleviation to the government's steadfast commitment to redistribution policies, which have fostered inclusive growth across the country in the past decade.

Per Capita Consumption Growth

Official data for 2022-23 reveals a commendable real per capita consumption growth rate of 2.9% per year since 2011-12. Notably, rural areas have witnessed a higher growth rate of 3.1% compared to urban areas at 2.6%.

Rural Development Initiatives

The report underscores the impact of government-funded programs on rural development, which have contributed significantly to poverty reduction, thereby narrowing the rural-urban divide.

Decline in Inequality

Both urban and rural inequality have witnessed an unprecedented decline, complementing the efforts to eliminate poverty across all strata of society.

Combination of Factors

High economic growth coupled with a substantial reduction in inequality has synergistically contributed to India's success in eliminating poverty, particularly at the Purchasing Power Parity USD 1.9 poverty line.

Discrepancy in Estimates'

The report highlights a considerable variance between poverty estimates by Brookings and those by the World Bank, emphasizing the need for accurate data interpretation.

Inclusive Policies

Government initiatives such as the national mission to construct toilets and ensure universal access to essential amenities like electricity, cooking fuel, and piped water have played a pivotal role in enhancing living standards.

Rural Access to Piped Water

The significant improvement in rural access to piped water, rising from 16.8% in 2019 to 74.7% at present, has had a profound impact on public health, indicating strides towards overall well-being.

Global Implications

With official confirmation of extreme poverty eradication, India's achievement holds positive implications for global poverty headcount rates, marking a significant step towards global poverty alleviation efforts.

Read also: Delhi’s GDP Growth Shows Promising Signs: Services Sector Leads the Revival

In essence, the Brookings report heralds a new era for India, signifying a triumph over poverty and underscoring the transformative impact of inclusive policies on the nation's socio-economic landscape.

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