Chapter 9: Poverty, Inequality and Standard of Living

1. Poverty Trends and Multidimensional Aspects

• According to the NITI Aayog Multidimensional Poverty Index (2023):
  • Bihar has highest poverty rate: 33.76% (2021–22), down from 51.91% (2015–16).
  • Around 3 crore people exited multidimensional poverty in this period.
  • Most deprived indicators: maternal health, nutrition, and access to cooking fuel.
• Rural vs Urban:
  • Rural poverty: 36.72%
  • Urban poverty: 13.55%

2. Consumption and Expenditure

• Based on the 2022–23 Household Consumption Survey (NSO):
  • Average monthly per capita consumption:
    • Rural: ₹2,346
    • Urban: ₹3,224
  • Bihar has lowest consumption expenditure among all major states.
• The Engel Ratio (share of food in consumption):
  • Bihar: 52% in rural, 47% in urban (indicates food dominates household spending).

3. Inequality Indicators

• Gini Coefficient (2022–23):
  • Rural: 0.26
  • Urban: 0.33
  • Indicates low but rising inequality, especially in urban areas.
• Asset Ownership:
  • 89% of rural households and 67% of urban households owned their homes.
  • Electricity access: 95% rural, 99% urban.
  • Toilet access: 80% rural, 97% urban.
  • LPG usage: 69% rural, 94% urban.

4. Government Initiatives Targeting Poverty Reduction

• Food Security Schemes (e.g., PDS, Antyodaya):
  • Improved access to cereals, pulses, and cooking gas.
• Direct Benefit Transfers (DBT):
  • Reaching 2.6 crore beneficiaries through Aadhaar-seeded accounts.
• Mukhya Mantri Gramin Awas Yojana:
  • Helps households not covered under PMAY to get housing support.

Conclusion

Bihar has made significant progress in reducing multidimensional poverty, yet it still has the highest poverty rate among Indian states. While inequality remains relatively low, consumption levels are still modest, particularly in rural areas. Continued focus on nutrition, fuel access, and maternal care, alongside effective delivery of targeted welfare schemes, remains crucial for inclusive growth.