- The National Sample Survey Office (NSSO) released the fact sheet for the Household Consumption Expenditure Survey for 2022-23, providing data on poverty and inequality trends in India.
- Poverty Trends –
- Reduction in Poverty: The poverty ratio in India significantly declined from 29.5% in 2011-12 to 10% in 2022-23 based on the Rangarajan Committee’s poverty lines. Similarly, using the Tendulkar Committee’s lines, poverty decreased from 21.9% to 3% over the same period.
- Inequality Trends –
- Gini Coefficient: The Gini coefficient (a measure of income inequality) saw a reduction in both rural (from 0.278 to 0.269) and urban (from 0.358 to 0.318) areas from 2011-12 to 2022-23, indicating a decrease in inequality, especially in urban regions.
- The 2022-23 survey uses the Modified Mixed Reference Period (MMRP), making comparisons with earlier data challenging.
- The latest survey attempts to include imputed values for public expenditure on subsidized and free items, which significantly affects household well-being. Despite efforts, the measured increase in average monthly per capita expenditure (MPCE) was modest (2.3% for rural and 0.96% for urban areas).
- The HCES 2022-23 reveals a substantial decline in poverty and a slight reduction in inequality in India, though challenges remain.
Dig Deeper: Tendulkar and Rangarajan committees for poverty estimation
