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India Has Over Powered Extreme Poverty: Brookings

India Has Over Powered Extreme Poverty: Brookings

The Brookings Institution, a prominent American think tank, has released a groundbreaking report lauding India's remarkable achievement in eradicating extreme poverty, marking a significant milestone in the nation's socio-economic landscape. Authored by economists Surjit Bhalla and Karan Bhasin, the report attributes this feat to the Indian government's robust policy initiatives focused on redistribution, which have fostered inclusive growth over the past decade.

According to the study, there has been a substantial decline in the headcount poverty ratio and a notable surge in household consumption, challenging previous estimates by the World Bank and indicating a lower number of impoverished individuals in India. The 'headcount poverty ratio at the purchase power parity $1.9 level' has plummeted from 12.2% in 2011-12 to a mere 2% in 2022-23, showcasing a remarkable improvement in living standards.

The authors highlight the amalgamation of high economic growth and a significant reduction in income inequality as pivotal factors contributing to this success. They assert that the elevated consumption growth in rural areas is a direct outcome of the government's unwavering commitment to redistribution. Publicly funded initiatives such as the national mission for constructing toilets and the drive for universal access to electricity, modern cooking fuel, and piped water have played a crucial role in this transformation.

Notably, the report underscores the impact of these policies by highlighting the staggering increase in rural access to piped water, which has risen from 16.8% in August 2019 to an impressive 74.7% at present. This demonstrates the tangible improvements in infrastructure and basic amenities across rural India, contributing to enhanced living standards and reduced poverty levels.

The authors emphasize that India's achievement in eliminating extreme poverty not only has positive implications for global poverty rates but also signals the need for the nation to graduate to a higher poverty line. This shift reflects India's evolving socio-economic landscape and its readiness to address new challenges and aspirations.

The release of this report comes at a crucial juncture, with two of the world's leading economies, Japan and the UK, slipping into recession. Britain recently reported a 0.3 percent contraction in the fourth quarter of 2023, officially entering a recession, while Japan continues to grapple with financial challenges exacerbated by the Covid-19 pandemic.

Amidst these global economic uncertainties, India has emerged as a beacon of opportunity for investors. Projections from the International Monetary Fund indicate that India is poised to overtake both Japan and Germany in terms of economic output, with estimates placing the shift in 2026 and 2027, respectively. This underscores India's growing prominence on the global stage and its potential to become a key player in the world economy.

In conclusion, the Brookings Institution's report celebrates India's remarkable achievement in eliminating extreme poverty and highlights the transformative impact of government policies focused on redistribution and inclusive growth. As India continues on its trajectory of economic development, it presents promising opportunities for investors and stakeholders, positioning itself as a key player in the global economy.

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India Has Over Powered Extreme Poverty: Brookings

India Has Over Powered Extreme Poverty: Brookings

The Brookings Institution, a prominent American think tank, has released a groundbreaking report lauding India's remarkable achievement in eradicating extreme poverty, marking a significant milestone in the nation's socio-economic landscape. Authored by economists Surjit Bhalla and Karan Bhasin, the report attributes this feat to the Indian government's robust policy initiatives focused on redistribution, which have fostered inclusive growth over the past decade.

According to the study, there has been a substantial decline in the headcount poverty ratio and a notable surge in household consumption, challenging previous estimates by the World Bank and indicating a lower number of impoverished individuals in India. The 'headcount poverty ratio at the purchase power parity $1.9 level' has plummeted from 12.2% in 2011-12 to a mere 2% in 2022-23, showcasing a remarkable improvement in living standards.

The authors highlight the amalgamation of high economic growth and a significant reduction in income inequality as pivotal factors contributing to this success. They assert that the elevated consumption growth in rural areas is a direct outcome of the government's unwavering commitment to redistribution. Publicly funded initiatives such as the national mission for constructing toilets and the drive for universal access to electricity, modern cooking fuel, and piped water have played a crucial role in this transformation.

Notably, the report underscores the impact of these policies by highlighting the staggering increase in rural access to piped water, which has risen from 16.8% in August 2019 to an impressive 74.7% at present. This demonstrates the tangible improvements in infrastructure and basic amenities across rural India, contributing to enhanced living standards and reduced poverty levels.

The authors emphasize that India's achievement in eliminating extreme poverty not only has positive implications for global poverty rates but also signals the need for the nation to graduate to a higher poverty line. This shift reflects India's evolving socio-economic landscape and its readiness to address new challenges and aspirations.

The release of this report comes at a crucial juncture, with two of the world's leading economies, Japan and the UK, slipping into recession. Britain recently reported a 0.3 percent contraction in the fourth quarter of 2023, officially entering a recession, while Japan continues to grapple with financial challenges exacerbated by the Covid-19 pandemic.

Amidst these global economic uncertainties, India has emerged as a beacon of opportunity for investors. Projections from the International Monetary Fund indicate that India is poised to overtake both Japan and Germany in terms of economic output, with estimates placing the shift in 2026 and 2027, respectively. This underscores India's growing prominence on the global stage and its potential to become a key player in the world economy.

In conclusion, the Brookings Institution's report celebrates India's remarkable achievement in eliminating extreme poverty and highlights the transformative impact of government policies focused on redistribution and inclusive growth. As India continues on its trajectory of economic development, it presents promising opportunities for investors and stakeholders, positioning itself as a key player in the global economy.

 
 
 
 

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