According to the SBI report of January 2025, what was India's rural poverty rate in FY24?

Correct option is B

The correct answer is (B) 4.86%

Explanation:

• According to the SBI Research report (Ecowrap) released on January 3, 2025, India's rural poverty rate has seen a significant decline, reaching 4.86% in FY24.

• The report, titled "Rethinking Poverty in India," utilized the latest Household Consumption Expenditure Survey (HCES) 2022-23 data to estimate these figures.

• This decline is attributed to a massive surge in rural consumption and the impact of government welfare programs targeting the bottom of the pyramid.

• The data indicates that the poverty gap—the distance of the poor from the poverty line—has also narrowed substantially in rural areas.

• The report highlights that inclusive growth strategies have successfully uplifted a large segment of the rural population above the poverty threshold.

Information Booster:

• The same report estimated the Urban Poverty Rate at 3.34% and the Total National Poverty Rate at 4.45% for FY24.

• It suggests that extreme poverty in India is now consistently below the 3% mark, aligning with international benchmarks for poverty elimination.

• The transition from food-based poverty to discretionary spending in rural households indicates an improvement in the overall quality of life.

• Direct Benefit Transfers (DBT) and the Free Food Grain Scheme are credited as major cushions against inflationary pressures for the rural poor.

Additional Knowledge:(A) 4.09% (Option a)

• This figure represents a specific poverty headcount ratio projected in some localized economic models for semi-urban clusters.

• It is often used in comparative studies discussing the pace of poverty reduction in specific developing states.

(C) 7.2% (Option c)

• This was a figure associated with older projections or preliminary estimates before the finalized HCES data was fully analyzed.

• It represents a higher threshold that was common in the mid-2010s but has since been surpassed by faster decline rates.

(D) 5.7% (Option d)

• This figure is frequently cited in NITI Aayog's older Multidimensional Poverty Index (MPI) reports as a national average for specific indicators.

• It does not reflect the specific rural poverty rate identified in the January 2025 SBI research findings.