Rural poverty crashed to 4.86% in FY24 from a high level of 25.7% in 2011-12, while urban poverty dropped to 4.09% from 13.7% in the same period, the report noted. In FY23, rural and urban poverty rates were 7.2% and 4.6%, respectively."The sharp decline in rural poverty ratio is on account of higher consumption growth in lowest 0-5 per cent decile with significant government support and such support is important as we also find that change in food prices has a significant impact on not just food expenditures, but overall expenditure in general," the report said, extrapolating the latest Household Consumption Expenditure Survey released by the Ministry of Statistics & Programme Implementation. The survey showed that consumption inequality in both rural and urban areas declined during the August 2023-July 2024 period compared to a year ago.According to Soumyakanti Ghosh, group chief economic advisor at SBI, urban poverty could decline further."At an aggregate level, we believe poverty rates in India could now be in the range of 4-4.5% with almost minimal existence of extreme poverty," the report said.

Rural Poverty Fell to Record Low of 4.86% in FY24: Report

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