SBI Poverty Report 2025
The SBI Research report highlights a notable reduction in poverty levels and changes in consumption patterns across India. Key points include:
- Poverty Reduction:
- Rural poverty declined to 4.86% in FY24 from 7.2% in FY23.
- Urban poverty reduced to 4.09% in FY24 from 4.6% in FY23.
- Overall poverty levels are now between 4-4.5%.
- Consumption and Infrastructure:
- Rural consumption is catching up with urban consumption due to government initiatives like DBT transfers and infrastructure development.
- The rural-urban consumption gap reduced from 88.2% in 2009-10 to 69.7% in 2023-24.
- Monthly Per Capita Consumption Expenditure (MPCE):
- Rural MPCE increased by ₹349, while urban MPCE grew by ₹537 in FY24.
- States like Karnataka and Andhra Pradesh saw significant improvements in rural MPCE compared to urban MPCE.
- Shifting Consumption Trends:
- A decline in the share of food items in MPCE, with increased spending on non-food items like transportation and education.
- Rural consumption on cereals and pulses fell significantly, reflecting changes in preferences.
- Inequality and Savings:
- Consumption inequality, measured by the Gini coefficient, is declining in both rural (0.237) and urban (0.284) areas in FY24.
- States with higher incomes, like Goa and Gujarat, exhibit higher savings rates.
- Inflation and CPI:
- Revisions in consumption weights reduced headline inflation from 5.5% to 5.0% in Nov’24.
- Rural areas benefit more from these adjustments compared to urban areas.
Key Statistics of SBI Poverty Report
| Category | Rural | Urban | All-India |
|---|---|---|---|
| Poverty Ratio (FY24) | 4.86% | 4.09% | 4-4.5% |
| MPCE (₹) | ₹4,122 | ₹6,996 | – |
| Increase in MPCE (FY24) | ₹349 | ₹537 | – |
| Consumption Inequality (Gini) | 0.237 | 0.284 | – |
| Food Share in MPCE (2023-24) | 47.0% | 39.7% | 43.4% |
| Savings Rate (Top State – Goa) | 49% | – | – |
| Headline Inflation (Nov’24) | 5.0% | 5.5% | – |
This report underlines the positive impact of government policies on poverty reduction and economic equity, while highlighting shifting consumption dynamics in rural and urban areas.