NSSO Survey Shows Poverty Down to 5%: NITI Aayog CEO

NITI Aayog CEO B V R Subrahmanyam highlights key findings from the latest NSSO consumer expenditure survey, revealing a significant reduction in poverty levels to below 5% in India. He emphasizes the growing prosperity evident in both rural and urban areas, as indicated by the substantial increase in per capita monthly household expenditure.

Survey Findings and Poverty Status

• The latest NSSO survey data indicates a poverty rate of below 5%.
• Per capita monthly household expenditure more than doubled in 2022-23 compared to 2011-12.
• Analysis categorizes people into 20 groups, with the lowest 0-5% group reflecting poverty.
• Average per capita monthly expenditure for this group remains low, signaling persistent poverty.
• The CEO acknowledges the need for economists to further analyze the data for precise figures.

Progress in Consumption

• Consumption has increased approximately 2.5 times in both rural and urban areas.
• This signifies progress occurring uniformly across rural and urban sectors.
• Rural consumption growth outpaces urban areas, leading to a narrowing gap between them.

Trend in Urban-Rural Disparities

• The gap between urban and rural consumption has decreased from 84% in 2011-12 to 71% in 2022-23.
• Continued trend suggests potential convergence of urban and rural incomes and consumption levels.
• Optimistic projection anticipates equality in urban and rural incomes in the future.

Shifts in Consumption Patterns

• NSSO survey highlights a decline in cereal and food consumption as a share of average MPCE.
• Rural consumption of cereals and food has decreased significantly over the years.
• Urban areas also witness a decline in cereal and food consumption, with a notable shift towards processed foods.
• Increased prosperity leads to diversification in spending habits, including higher expenditures on milk, fruits, vegetables, and processed foods.