Poverty Trends in India Since 1973

There has been a substantial decline in the poverty ratio in India since 1973:

• 1973-74: The poverty ratio was very high at about 55%.
• 1993-94: It declined to 36%.
• 2004-05: It further declined to 27.5% (based on Tendulkar methodology).
• 2011-12: The poverty ratio fell to 22%.

(Recent estimates suggest it has fallen below 10%, though official NSSO consumer expenditure data was delayed for years).

While the percentage of poor people fell steadily, the actual number of poor people remained stable around 320 million for a long time (from 1973 to 1993) because the total population was growing rapidly.

However, between 2004-05 and 2011-12, the absolute number of poor finally saw a significant decline, dropping from 407 million to 270 million.

1. Higher Economic Growth: Especially after the 1991 economic reforms.
2. Targeted Anti-Poverty Programmes: Schemes like MGNREGA (guaranteed rural employment), PDS (subsidised food), and PMGSY (rural roads).
3. Decline in Population Growth Rate: Slower population growth helped distribute resources better.