India's Poverty Rate Set to Decline to 4.6% in 2024

A State Bank of India report projects India's poverty rate will decrease to 4.6% in 2024, down from 5.3% in 2023 as estimated by the World Bank. The reduction reflects improved data collection and economic reforms. India has emerged as a positive global outlier in poverty reduction efforts.

In a recent report, the State Bank of India (SBI) forecasts a significant reduction in India's poverty rate, predicting a drop to 4.6% by 2024. This figure marks an improvement from the World Bank's 2023 estimate of 5.3%, underscoring India's progress in tackling poverty.

The alignment in poverty estimates by SBI and the World Bank suggests a robust approach in India's anti-poverty measures. The decline is largely attributed to modernized data methodologies, as seen in India's Household Consumption Expenditure Survey, which now uses the Modified Mixed Recall Period for better accuracy.

This updated approach has contributed to higher recorded consumption in national surveys, resulting in lowered poverty estimates. Notably, India reduced its poverty rate dramatically from previous benchmarks, becoming a positive anomaly internationally by cutting the global poverty count significantly.