Poverty Level Fell Below 5%, Says NITI Aayog CEO Referring NSSO Data

NSSO has released the latest NSSO data on household consumer expenditure which indicates that India's poverty level has fallen below 5 per cent and people are becoming more prosperous both in the rural and urban areas, NITI Aayog CEO B.V.R. Subrahmanyam said on Sunday.

Mumbai: Referring to NSSO Data, Nitit Ayog CEO, B.V.R. Subrahmanyam claimed that poverty has fallen below 5%. The survey also revealed that the average per capita monthly expenditure of the bottom 0-5 per cent class is pegged at Rs 1,373 in rural areas and Rs 2,001 in urban areas.

NSSO has released the latest NSSO data on household consumer expenditure which indicates that India’s poverty level has fallen below 5 per cent and people are becoming more prosperous both in the rural and urban areas, NITI Aayog CEO B.V.R. Subrahmanyam said on Sunday.

The per capita monthly household expenditure more than doubled in 2022-23 as compared to 2011-12 which reflects the rising level of prosperity in the country, according to data released by the National Sample Survey Office (NSSO) on Saturday.

“The consumer expenditure survey also reflects the success of the poverty alleviation measures taken by the government,” Subrahmanyam told the media.

How Is The NSSO Survey Categorised?

The NSSO survey results are based on data collected from 1.55 lakh rural households and 1.07 lakh urban households.

The survey grouped the population into 20 different categories and the data showed that the average per capita monthly expenditure for all categories stood at Rs 3,773 in rural areas and Rs 6,459 in urban areas.

The average per capita monthly expenditure of the bottom 0-5 per cent class is pegged at Rs 1,373 in rural areas and Rs 2,001 in urban areas.

Poverty Line & Consumer Price Index

“If we take the poverty line and inflate it with the Consumer Price Index (CPI) to today’s rate, we see that the average consumption of the lowest 0-5 per cent class, is about the same. This means that poverty in the country is only in the 0-5 per cent group,” the NITI Aayog CEO said.

“This is my assessment. But economists will analyse it and come out with absolutely correct numbers,” he added.

Subrahmanyam als claimed that the data showed that the consumption both in rural and urban areas has shot up about 2.5 times.

“This shows that the progress in the country is happening in both urban and rural areas,” he highlighted.

The survey also shows that consumption in rural areas is growing faster than urban areas, thus narrowing the disparities between the two segments, Subrahmanyam said.

The NSSO survey also indicates a significant fall in the share of consumption of cereals and food in the total expenditure of both rural and urban households in the country.

NITI Aayog CEO On Prosperity In Country

“This means people are becoming prosperous with extra income. And with this increased prosperity, they are spending more on other things than food. Even in food, they are drinking more milk, eating fruits and more vegetables,” he added.

Subrahmanyam also said: “The contribution of food to CPI inflation will be lower and probably was lower in earlier years also. This means inflation was being overstated and is probably less as food has been a major contributor to inflation.”

(With Inputs From Zee Business)