302 Million Lifted Out of Poverty in India: EPW Study on Intra-Household Resource Shift (2011–2024)

12 Aug 2025

302 Million Lifted Out of Poverty in India: EPW Study on Intra-Household Resource Shift (2011–2024)

A study published in the Economic & Political Weekly  by economists Shamika Ravi and Mudit Kapoor reveals a dramatic shift in intra-household resource allocation in India between 2011–12 and 2023–24.

About the Study 

  • Title: Intra-household Resource Allocation and Changes in Child and Gender Poverty between 2011–12 and 2023–24.
  • Data Sources: HCES 2011–12 & 2023–24, Ministry of Statistics and Programme Implementation.

Engel Curves

  • The Engel curve shows the relationship between a household’s income and its spending on a particular good or service.
  • It states that the percentage of income allocated for food purchases decreases as a household’s income rises, while the percentage spent on other things (such as education and recreation) increases.

  • Methodology: Based on Dunbar et al. (2013) and Calvi (2020), used Engel curves and non-linear regression to estimate resources for children (0–14 years), adult females, and adult males (15–79 years).
    • It used expenditure data on privately assignable items to estimate resource shares for children (0–14 years), adult females, and adult males (15–79 years).
  • Focus: Analyses how changes in resource allocation toward women and children impact poverty patterns.

What is Poverty

  • Poverty is a state or condition in which an individual or group lacks the resources necessary to meet basic needs and enjoy a decent standard of living.
  • According to the Human Development Report (1997), poverty is not just about not having money but it is about not having choices and opportunities to live a decent life. 

Poverty Gap

  • The poverty gap is a ratio showing the average income shortfall of a total population from the poverty line. The poverty line is the minimum level of income required to secure the basic necessities for survival. As such, the poverty gap reflects the intensity of poverty in a nation.

Determinants of Female Resource Share

  • Positive Factors: More adult females, higher fraction of female children, inheritance eligibility for leading women, SC/ST/OBC households, presence of a college-educated member.
  • Negative Factors: More adult males, presence of widows in households with children.
  • Religious Patterns: 
    • 2011–12: lower share for Hindu, Buddhist, Jain, Sikh females; 
    • 2023–24: reverse trend.
  • Geographic Variation: Lower shares for females in northern, eastern, and southern states; higher in north-east.
  • Age Trends:
    • 2011–12: Female share below the equality line in most age groups; small exceptions for urban households without children (20–30 years) and with children (45–55 years).
    • 2023–24: Female share above the equality line for broader age ranges—rural households (15–55 years), urban (15–65 years).

Poverty Trends

  • All-India Poverty Rate (Equal Sharing Assumption): Fell from 29.5% (2011–12) to 4% (2023–24).
  • All-India (Unequal Sharing Reality) : 34.7% (2011–12) to  10.5% (2023–24).

Poverty Gap

  • 2011–12: All-India 18.4% (equal sharing), higher under unequal sharing—children 35.6%, females 21.5%, males 13.5%.
  • 2023–24: All-India 10.2% (equal sharing); children 17.9%, females 6.4%, males 15.1%.

Policy Links and Government Role

  • Government Programmes: Programmes like Pradhan Mantri Awas Yojana, MUDRA Scheme, Lakhpati Didi Yojana credited for women’s financial independence and co-ownership of property.
    • Around 70% of MUDRA Yojana’s 52 crore loan accounts benefited women.
  • Impact: By 2023–24, average adult female resource share exceeded adult male share across all states and UTs – a reversal from 2011–12.
    • Adult female poverty is now lower than adult male poverty nationwide.
    • Large-scale empowerment of women, resulting in significant poverty reduction for women and children.

Poverty Estimation Methods in India

  • Alagh Committee (1979): Defined separate rural and urban poverty lines based on minimum nutritional needs.
  • Lakdawala Expert Group (1993): Used calorie-based norms, state-specific poverty lines, and consumption expenditure data.
  • Tendulkar Committee (2009): Shifted focus to per capita daily consumption expenditure, estimating the 2011-12 poverty line at Rs. 816 (rural) and Rs. 1,000 (urban) per month.
  • Rangarajan Committee(2014): Recommended separate rural and urban consumption baskets covering food and essential non-food items, setting poverty lines at Rs. 972 (rural) and Rs. 1,407 (urban) monthly per capita consumption.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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