According to BVR Subrahmanyam, CEO of ITI Aayog, India's poverty rate has decreased to barely 5 percent, indicating a better state of the country's economy. He referenced the National Sample Survey Office's (NSSO) most recent consumer expenditure survey, which showed a sharp increase in household consumption spending.
It should be mentioned that the report was published following a hiatus of more than ten years. It showed that, in comparison to 2011–12, per capita monthly household expenditure more than quadrupled in 2022–2023 years.
Subrahmanyam emphasized the value of the survey in determining the degree of poverty and the efficacy of programs aimed at reducing it. Declaring with confidence that the poll results were accurate, he remarked, "The data indicates that poverty in India is now below five percent."
According to the poll, which divided respondents into 20 groups, the average monthly spending per person in rural regions is Rs 3,773, but in urban areas it is Rs 6,459. Subrahmanyam made the observation that the 0–5 percent income range is where poverty is most prevalent.
The average consumption of the lowest fraction, the 0–5 percent, is almost the same if we take the poverty line and inflate it using the Consumer Price Index (CPI) to the current rate. This indicates that just the 0–5 percent of the population in the nation live in poverty," the CEO of NITI Aayog stated.
In the past 20 years, India's average monthly costs have increased five- to six-fold. Subrahmanyam pointed out that consumption has increased by 2.5 times in both rural and urban regions, demonstrating growth everywhere. He also emphasized the closing consumption gap between rural and urban areas, pointing to a promising path towards economic parity.
A noteworthy discovery from the study is the reduction in the intake of food products and cereals, suggesting a change towards a lifestyle that is more affluent.
More money is currently being spent on non-food products including milk, fruits, vegetables, and processed foods, which reflects rising wealth and changing dietary habits.
In addition, Subrahmanyam emphasized the possible effects of the NSSO survey on GDP and inflation, pointing out that the consumer price index has to be adjusted in order to properly reflect present consumption trends.
