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India’s Poverty Decline: NSO Surveys and World Bank Data

29 May 20251 min read
REPORTS & INDEXESIndia’s PovertyDecline: NSOSurveys and WorldBank Data29 May 2025safalsetu.com

Why in the news

NSO surveys and World Bank data show sharply lower poverty and inequality.

Key facts

  • Headcount ratio: 29.5% to 4.9% (24.6 points).
  • $2.15/day line: 16.2% to 2.3%; $3.65/day: 61.8% to 28.1%.
  • GDP growth 9.2% and CPI 5.4% in 2023-24.
  • Half the poor live at 75%-100% of the line; rural and urban areas contributed equally, with urban inequality falling faster.
Area2023-242022-232011-12
Rural₹1,940₹1,837₹972
Urban₹2,736₹2,603₹1,407

Lines follow the Rangarajan Committee method, inflation-adjusted, with improved sampling.

Concerns

  • Near-poor households are exposed to shocks.
  • Gig workers, migrants and urban poor lack PDS and health cover.
  • Informal urban workers are under-sampled.

Way forward

  • Expand PM-GKAY, LPG DBTs and cash transfers; climate-resilient NREGA work.
  • Portable safety nets; PM POSHAN and Saksham Anganwadi.
  • Annual multi-dimensional poverty audits.

Exam angle

  • Rangarajan Committee lines; Gini 0.310 to 0.253.

Test yourself

1. According to NSO surveys, India's poverty headcount ratio fell to what level in 2023-24 from 29.5% in 2011-12?

The ratio dropped to 4.9%, a fall of 24.6 percentage points.

2. The consumption-based Gini coefficient in India moved from 0.310 in 2011-12 to what value in 2023-24?

The notes record a fall to 0.253, indicating reduced inequality.

3. Which committee's method underlies the updated poverty lines in the NSO survey notes?

Poverty lines are Rangarajan Committee figures adjusted for inflation.