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.