India's Poverty Levels Hit Record Lows: SBI Report

Recent SBI research reveals a substantial reduction in rural and urban poverty rates in India, driven by government support programs and increased consumption growth. Rural poverty decreased from 25.7% in 2011-12 to 4.86%, and urban poverty fell from 13.7% to 4.09%. Enhanced infrastructure is narrowing income gaps.

According to a new report from the State Bank of India (SBI), rural poverty in India has plummeted to an impressive 4.86% as of March 2024, from a striking 25.7% in 2011-12. This remarkable decline is attributed to the significant role of government-backed initiatives aimed at boosting consumption growth among the lowest-income groups.

The research further highlights that urban poverty has similarly decreased, standing at 4.09%, down from 13.7% in the same period. Factors contributing to this downtrend include enhanced physical infrastructure and efforts to improve rural livelihoods, thereby reducing income disparities between urban and rural populations.

The SBI report also suggests potential revisions following the upcoming 2021 census and indicates the possibility of an even further drop in poverty levels. Meanwhile, risks such as food inflation in lower-income states could impact consumption but savings rates remain high across wealthier regions.

(With inputs from agencies.)