CNBC TV18
By CNBC-TV18.com
Published Feb 27, 2024
An SBI report estimates the new poverty line is ₹1,622 for rural areas (vs ₹816 in 2011-12) based on household consumption expenditure data.
The same report pegs the poverty line in urban India at ₹1,929 compared to ₹1,000 in 2011-12.
Aggregate poverty rate may be 4.5-5% now, according to an SBI report.
Rural poverty is now at 7.2%, down from 25.7% in 2011-12. Urban poverty at 4.6% compared to 13.7% at last count.
An average rural home’s monthly expenses are up from ₹2,023 in 2011-12 to ₹3,773 in 2022-23. The same is up from ₹3,939 to ₹6,459 for urban home’s.
Income support and targeted subsidies have reduced the gap between rural and urban incomes.
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Rural inflation has been higher than urban areas. So, people in rural areas have to spend more on household expenses.
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Since rural wages have been stagnant, households may have to dip into their savings to meet expenses, according to an Emkay report.
At the same time, a rural family’s expense on education has not grown. It’s down from 3.49% in 2011-12 to 3.3% in 2022-23.
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People are spending less on food, overall. However, the money spent on proteins, milk, fruits etc. has gone up.
People are spending more on processed food, durable goods, and entertainment.
More white goods would mean more money spent on electricity too.
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