A new working paper by the International Monetary Fund (IMF) states that India has almost eradicated extreme poverty through government food schemes and reduced its consumption inequality to a 40-year low. The working paper of the IMF has been published by economists Surjit Bhalla, Arvind Virmani and Karan Bhasin.
international monetary fund ,IMF, India’s new working paper says that India has almost eradicated extreme poverty through government food schemes. (Extreme Poverty) wiped out and your consumption (Consumption) Inequality has been brought down to the lowest level in 40 years. The working paper of the IMF has been published by economists Surjit Bhalla, Arvind Virmani and Karan Bhasin. It states that the proportion of people living in extreme poverty remains at less than one percent level. this pandemic (Pandemic) Even during this level has remained stable. The reason behind this has been told to ration. The study comes at a time when recent global reports have indicated that the gap between the rich and the poor in Asia’s third-largest economy is widening, despite the economic impact of the COVID-19 pandemic. Reports on the tremors have drawn different conclusions.
The IMF paper, published on 5 April 2022, said that the number of people living in extreme poverty in India was 0.8 percent of the population in the year 2019 before the pandemic.
World Bank’s definition of extreme poverty
For extremely poor people, the World Bank has defined Purchasing Power Parity (PPP) of US$1.9 or less to fall into this category.
The study said that rationing was important in ensuring that extreme poverty does not increase and remains at low levels in the year 2020 of the pandemic. PPP is a criterion, which equates the buying power of different currencies, for ease of comparison.
The study concludes that their results show that the social security provided in India’s food subsidy program has offset a large part of the impact of the pandemic. According to this, repeated low poverty rates like this show that India has eliminated extreme poverty.
Apart from this, let us tell you that the International Monetary Fund recently said that despite the Kovid-19 crisis, India has received record foreign direct investment in the last few years and some safeguards in India to reduce the risk of capital flows. Huh.