Mr. Subrahmanyam Highlights Household Consumption Survey Data as Key Metric for Assessing Poverty Reduction Initiatives.
New Delhi: NITI Aayog CEO BVR Subrahmanyam announced that poverty in India has dropped to below 5 percent, referencing the latest Household Consumption Expenditure Survey (HCES) conducted between August 2022 and July 2023.
The survey, a vital tool for assessing household consumption patterns, sheds light on poverty levels and the efficacy of government-led poverty alleviation measures. Mr. Subrahmanyam emphasized the significance of the survey’s data on household consumption as a key metric for evaluating the success of poverty reduction initiatives.
According to the HCES findings, there has been a notable increase in consumption, with both rural and urban areas experiencing significant growth. Urban households saw a 33.5 percent increase in the average monthly per capita consumption expenditure (MPCE) since 2011-12, reaching ₹3,510, while rural India witnessed an even more substantial 40.42 percent rise, reaching ₹2,008.
“Based on this data, poverty levels in the country could be closer to 5% or less,” stated Mr. Subrahmanyam, as reported by TOI.
One of the key observations from the survey is the noticeable shift in spending patterns, particularly regarding food expenditure. For the first time, rural households allocated less than 50% of their total expenditure to food, according to the survey.
The survey further claims that the urban-rural consumption divide has narrowed from 91% in 2004-05 to 71% in 2022-23, indicating a reduction in inequality.
“In terms of food, consumption of beverages, processed food, milk, and fruits is growing – an indication of more diverse and balanced consumption,” added Mr. Subrahmanyam.
Mr. Subrahmanyam highlighted that benefits such as healthcare under the Ayushman Bharat scheme and free education were not considered in the survey’s assessment. This suggests that destitution and deprivation have nearly disappeared, according to his claim.