India Has Eliminated Extreme Poverty, Says US Think Tank Brookings
In a landmark acknowledgment, the Brookings Institution, a prominent American think tank, has recognized India’s monumental achievement in eliminating extreme poverty. This accomplishment represents a transformative shift in the socio-economic landscape of the nation, highlighting the effectiveness of government policies aimed at fostering inclusive growth and redistribution over the last decade.
The comprehensive study, crafted by economists Surjit Bhalla and Karan Bhasin, presents compelling statistics that depict a dramatic decrease in the headcount poverty ratio alongside a significant rise in household consumption across India. These findings contest earlier assessments by the World Bank, presenting a more optimistic view of poverty reduction in the country.
Central to this achievement is a combination of high economic growth and marked reduction in income inequality. Remarkably, the ‘headcount poverty ratio at the purchase power parity $1.9 level’ saw a descent from 12.2% in the fiscal year 2011-12 to just 2% in 2022-23. This progress is attributed to the Indian government’s relentless efforts in redistribution, directly impacting rural economic growth through various publicly funded initiatives.
Among the notable government-led initiatives are the national mission for constructing toilets and campaigns for ensuring universal access to electricity, modern cooking fuels, and piped water. These efforts have notably resulted in a drastic improvement in rural access to piped water, soaring from 16.8% in August 2019 to 74.7% currently.
The report underscores the broader implications of eliminating extreme poverty in India, not just for the nation but for global poverty rates. It signals a shift towards adopting a higher poverty line for future assessments and strategies. The success story of India’s battle against extreme poverty is particularly poignant against the backdrop of economic challenges faced by leading global economies like Japan and the UK, both of which have recently entered recessions exacerbated by the Covid pandemic and other factors.
As Japan and the UK grapple with their economic downturns, India shines as a beacon of opportunity. With an economy that has not only withstood recent global financial upheavals but is also projected to surpass those of Japan and Germany in terms of output within the next few years, India’s trajectory is closely monitored by investors worldwide. These projections by the International Monetary Fund are indicative of India’s burgeoning role on the global economic stage, further buoyed by its recent strides in eradicating extreme poverty.
