India sees sharp decline in extreme poverty, says World Bank report

Over 269 million lifted out of poverty since 2011-12

India has made significant progress in reducing extreme poverty over the past decade, with the latest World Bank data showing a drop from 27.1% in 2011-12 to just 5.3% in 2022-23. This reduction represents over 269 million people lifted out of extreme poverty in approximately 11 years.

In 2022-23, around 75.24 million people in India were classified as living in extreme poverty, down from 344.47 million in 2011-12.

The World Bank’s report uses the international poverty line of $3.00 per day (adjusted for 2021 prices) and reflects significant gains across both rural and urban regions.

Regional contribution to poverty reduction

Five Indian states — Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh — which accounted for 65% of the country’s extreme poor in 2011-12, were responsible for two-thirds of the overall poverty reduction by 2022-23.

According to the World Bank, the number of people living below the older $2.15-per-day poverty line also declined drastically — from 205.93 million in 2011 to just 33.66 million in 2022. This brought the national poverty rate down from 16.2% to 2.3%.

The data revealed that rural extreme poverty fell from 18.4% to 2.8%, while urban poverty dropped from 10.7% to 1.1% during the same period.

Multidimensional poverty also on the decline

India has also achieved notable reductions in multidimensional poverty. The Multidimensional Poverty Index (MPI), which measures deprivation in areas like health, education, and living standards, dropped from 53.8% in 2005-06 to 16.4% in 2019-21, and further to 15.5% in 2022-23.

Government initiatives credited for progress

As the BJP-led NDA government completes 11 years in office, Prime Minister Narendra Modi has attributed this progress to welfare initiatives focused on empowerment, infrastructure, and inclusion. Programs like the PM Awas Yojana, PM Ujjwala Yojana, Jan Dhan Yojana, and Ayushman Bharat have improved access to housing, clean cooking fuel, banking services, and healthcare.

In addition, schemes such as Direct Benefit Transfer (DBT) and efforts in digital inclusion and rural infrastructure development have enhanced transparency and ensured last-mile delivery of benefits. These measures are credited with helping more than 25 crore people rise out of poverty.

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