Headcount Poverty Declines In India, Says NCAER Study
Poor are moving up to the lower middle and lower middles are crossing vulnerability zone; says study
ncaer
A recent study by the National Council of Applied Economic Research ( NCAER) showed the decline in the headcount poverty rate in India which declined from 21.2 per cent in 2011-12 to 8.5 per cent in 2022-24. This fall continues the last decline from 38.6 per cent in 2004-05 to 21.2 per cent in 2011-12.
This study is based on the IHDS data using the inflation-adjusted poverty line recommended by the Tendulkar Committee. Researchers distinguish between the poor—those who live below the Tendulkar Committee's recommended poverty line—and the vulnerable—those whose monthly per-capita consumption is above the poverty line but less than twice the poverty line—in light of the consensus that the poverty line is set too low.
The findings showed a significant drop in poverty, with many formerly impoverished people rising to a vulnerable lower middle-class category and households in this group moving out of the vulnerability zone and into non-poor status.
The decline in the rural headcount poverty ratio is more visible than in urban. Data shows that rural headcount poverty declined from 24.8 per cent in 2011-12 to 8.6 per cent in 2022-24. Whereas in cities it declines from 13.4 to 8.4 per cent for the same period.
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