New Delhi: Around 129 million Indians are living in extreme poverty in 2024, a report by the World Bank revealed. These people are reportedly sustaining on less than USD 2.15 million (Rs 181 approx). Notably, it is less than 1990 when there were 431 million Indians in extreme poverty.
However, if a higher poverty standard of USD 6.85 (Rs 576 approx.) per day is considered more Indians are living below the poverty line in 2024 as compared to 1990. The number is primarily driven by population growth.
Notably, the World Bank had earlier stated that in 2021, extreme poverty in India had declined by 38 million to 167.49 million. The report titled ‘Poverty, Prosperity and Planet: Pathways out of the Polycrisis’, also revealed that it had not factored in the Household Consumption and Expenditure Survey (HCES) for 2022-23 released recently, reported Business Standard.
"These new datasets are not reflected in the report, since the necessary analysis could not be completed in time. While the precise impact of adding these two datasets on global poverty is unclear at the time of this writing, key conclusions of the report are robust, such as the increasing concentration of extreme poverty in Sub-Saharan Africa and fragile countries, and that extreme poverty eradication by 2030 is out of reach," the report stated.
As per the World Bank, India’s contribution to global extreme poverty was expected to decline over the next decade. As per the report, 2020-2030 is considered a "lost decade" as global poverty reduction is slowing.
“These estimates are based on projections of growth in GDP per capita over the next decade, as well as historical growth rates. Even setting the extreme poverty rate in India in 2030 to zero, the global extreme poverty rate in 2030 would only fall from 7.31 per cent to 6.72 per cent, still well above the 3 per cent target,” the report stated.
The recent methodological changes in the latest Household Consumption and Expenditure Survey needed to be examined carefully, the report stated. Notably, India has been experimenting with various recall periods since 1999-2000 so that the accuracy of consumption data collection can be improved.
In the 2011-2012 survey India utilised three recall periods. These were – the Uniform Recall Period (URP), Mixed Reference Period (MRP), and Modified Mixed Reference Period (MMRP). MRP was adopted for official poverty rate calculation during that period.