India has officially eliminated 'extreme poverty': US Think Tank
PTC News Desk: In its most recent report, the American think tank Brookings Institution praised India for eliminating extreme poverty, describing it as a watershed moment in the country's socioeconomic history.
The report, authored by economists Surjit Bhalla and Karan Bhasin, attributes the achievement to the Indian government's robust policy initiatives aimed at redistribution and inclusive growth over the last decade.
The study publishes statistics indicating a significant decline in the headcount poverty ratio and an increase in household consumption. The data challenged previous World Bank estimates, indicating a lower number of impoverished individuals in India.
According to the study, one of the key factors contributing to this success is the combination of strong economic growth and significant reductions in income inequality. The 'headcount poverty ratio at the purchase power parity $1.9 level has dropped from 12.2% in 2011-12 to a mere 2% in 2022-23.
The authors claimed that the increased consumption growth in rural areas is a direct result of the government's unwavering commitment to redistribution. According to the study, publicly funded initiatives such as the national mission to build toilets and the push for universal access to electricity, modern cooking fuel, and piped water have played critical roles.
The report highlights the impact of such policies, stating that rural access to piped water has increased dramatically from 16.8% in August 2019 to an impressive 74.7% today.
The authors emphasise that eliminating extreme poverty in India not only has positive implications for global poverty rates but also signals the need for the country to advance to a higher poverty line.
The report comes at a time when two of the world's leading economies, Japan and the United Kingdom, have entered recession. Britain recently reported a 0.3 percent contraction in the fourth quarter of 2023, officially entering a recession. Japan, once on track to become the world's largest economy, has also struggled to recover from the Covid pandemic, which crippled the country's finances.
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