Free bus schemes help, but rural India pays more for travel
A World Bank report commended India for lifting 171 million people out of poverty, with extreme poverty falling to 2.3% by 2022-23. However, the Household Consumption Expenditure Survey (HCES) 2023-24 reveals that conveyance is the largest non-food expenditure, with bus travel accounting for 20% of total conveyance expenditure. Rural India spends more on bus travel (20.6%) than urban India (16.2%), despite lower incomes. While free bus schemes for women in some states have reduced urban bus expenditure, rural areas show an increase. The article calls for improved transportation infrastructure, electric buses, and better quality/affordability of services, especially in rural areas, to reduce conveyance costs and improve livelihoods.
Key Points
- A World Bank report indicates a significant reduction in extreme poverty in India, falling to 2.3% by 2022-23.
- Conveyance, particularly bus travel, constitutes the largest non-food expenditure for Indian households.
- Rural households spend a higher proportion of their conveyance budget on buses (20.6%) compared to urban households (16.2%).
- Free bus schemes for women have shown mixed impacts, reducing urban bus expenditure but increasing it in some rural areas.
- Policymakers need to improve rural transportation infrastructure, promote electric buses, and enhance bus quality and affordability to reduce travel costs.
Exam Facts
- World Bank report states India pulled 171 million people out of poverty.
- Extreme poverty fell from 16.2% (2011-12) to 2.3% (2022-23).
- Per capita household expenditure in 2023-24 was ₹4,122 in rural India and ₹6,996 in urban India (HCES data).
- The Ministry of Housing and Urban Affairs recommends 60 buses per one lakh people.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.