Fri Jan 03 11:58:28 UTC 2025: ## India’s Poverty Rate Plummets to Record Low: SBI Report

**NEW DELHI, INDIA** – A new report from the State Bank of India (SBI) reveals a dramatic decline in India’s poverty rate, reaching a historic low. The report, released Friday, estimates that the national poverty rate now sits between 4% and 4.5%, with near-elimination of extreme poverty.

Rural poverty has seen the most significant drop, falling from 25.7% in 2011-12 to a mere 4.86% in 2023-24. Urban poverty also decreased, from 4.6% to 4.09% during the same period. These figures represent a substantial improvement compared to FY23 estimates of 7.2% and 4.6% for rural and urban poverty respectively.

The SBI attributes this sharp decline primarily to increased consumption among the lowest income groups, fueled by government initiatives. These initiatives, including direct benefit transfers (DBTs) and investments in rural infrastructure, have significantly boosted farmers’ incomes and improved rural livelihoods. The report highlights that approximately 30% of rural per capita monthly consumption expenditure (MPCE) is attributable to these government programs.

Furthermore, the report notes a narrowing gap between rural and urban MPCE, decreasing from 88.2% in 2009-10 to 69.7% in 2023-24. This convergence is particularly notable in previously lagging states like Bihar and Rajasthan. Improved infrastructure, including extensive road networks under initiatives like the Pradhan Mantri Gram Sadak Yojana (PMGSY), has played a crucial role in this progress.

The report also indicates a shift in consumer behavior, with increased spending on non-food items reflecting a rise in living standards. However, the SBI cautions that these figures may be subject to minor revisions pending the completion of the 2021 census and the release of updated rural-urban population data. Despite this, the report concludes that India’s poverty reduction is a significant achievement.

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