India story: Booming economy to lift 2.5 crore households out of poverty

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Updated: April 26, 2019 5:47:28 PM

Finance Minister Arun Jaitley had recently stated that there will be no extreme poverty in India by 2031 on account of economic expansion.

Poverty, a major factor holding India back since years, is set to decline by 2030 uplifting a large section of its population struggling to survive on margins.

India will uplift around 25 million households out of poverty and reduce the share of households below the poverty line from 15 percent today to 5 percent, the World Economic Forum (WEF) said in a report.

Further, the upper-middle income and high income segments will grow from being one in four households today, to one in two households by 2030, noted the WEF report. This would be on the back of economic expansion, increase in internet access and a favourable demographic dividend, according to the report.

In 2012, the government estimated that 22 per cent of the country’s population live below poverty line. According to the World Bank’s 2015 estimates, there are more than 17 crore poor people in India.

According to India’s official estimates, while the economy grew at 6.7 per cent in FY18, it grew at 7.2 per cent in FY19.

The WEF report also pointed out towards several challenges that the government and private sector need to overcome in order to tap the full potential of these opportunities and ensure equitable growth. These are job creation, skill development, physical and digital connectivity, financial inclusion, access to healthcare, pollution and urban planning.

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Finance Minister Arun Jaitley had recently stated that there will be no extreme poverty in India by 2031 on account of economic expansion.

Fast economic growth and rapid urbanisation would reduce the share of population living in extreme poverty by 2021 and end it completely by the end of the decade after that, said Arun Jaitley. This will add jobs and benefit all sections of the society, he added.

Extreme poverty refers to a severe lack of access to education, healthcare, electricity, sanitation and clean water, according to Brookings.

A decline in poverty has also been noted by Brookings Report 2018 which said that India is sliding down the global poverty ranking and is no longer home to the world’s most poor.

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