India has made remarkable strides in the battle against extreme poverty, as highlighted in the World Bank’s latest global poverty update. In just over a decade, the number of Indians living in extreme poverty has plunged from 344.47 million in 2011–12 to just 75.24 million in 2022–23 — a transformation of historic proportions.
India Lifts 269 Million People Out Of Extreme Poverty In Just Over A Decade, Says World Bank
India’s extreme poverty rate has significantly decreased over the past ten years under Prime Minister Narendra Modi’s visionary government, dropping from 27.1% in 2011–12 to 5.3% in 2022–23, according to the most recent World Bank data.
This dramatic decline means that approximately 269 million people in India have moved out of extreme poverty during these twelve years. In absolute terms, the number of people living in extreme poverty dropped from 344.47 million in 2011–12 to 75.24 million in 2022–23.
According to the research, as of FY25, India’s real GDP is about 5% below its pre-pandemic trend level.
According to the report, growth should progressively return to its potential between 2027 and 2028, provided that the present global uncertainties are settled systematically.
However, there are substantial downside risks to the outlook as global policy changes could still occur. It stated that high trade tensions could reduce demand for India’s exports and postpone the investment rebound even more.
Under the most recent World Bank data, the number of people living in extreme poverty has decreased from 344.47 million to barely 75.24 million.
Based on the $3 per day worldwide poverty level (using 2021 prices), the World Bank’s evaluation demonstrates a widespread decline in both rural and urban areas.
According to World Bank estimates, the percentage of Indians living in extreme poverty is now 2.3% at $2.15 per day consumption, the previous poverty line based on 2017 prices. This is far lower than the 16.2% in 2011–12.
Government Schemes’ Contribution
According to the research, the cost of living and purchasing power parity, as of 2021 prices, were taken into consideration when preparing the report. This indicates that, compared to 2011–12, 26.9 crore people have risen over the extreme poverty line by 2022–2023.
The central government’s focus on inclusiveness, infrastructure development, and “Sabka Saath, Sabka Vikas” has been identified as the primary cause of this. The poor have benefited directly from programs like Pradhan Mantri Awas Yojana, Jan Dhan Yojana, Ujjwala Yojana, Ayushman Bharat, and others.
Between 2011–12 and 2022–23, there was a balanced decrease in severe poverty, with rural extreme poverty falling from 18.4% to 2.8% and urban extreme poverty falling from 10.7% to 1.1%. The closing of the poverty gap between India’s rural and urban areas is a sign of the nation’s economic expansion and demonstrates how its advantages have spread to other regions of the country.
Role Of Direct Benefit Transfers (DBT)
The JAM trinity, which combines Jan Dhan, Aadhaar, and mobile technology, ensures that government benefits are delivered transparently and directly to the intended recipients. This not only ensured the appropriate person received the benefits of the program, but it also began providing the beneficiaries with necessities.
Important states made a substantial contribution to this achievement. Two-thirds of the total decrease in extreme poverty by 2022–2023 came from Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh, which together accounted for 65% of India’s extreme poor in 2011–12. India has made significant progress in lowering multidimensional poverty, which takes into account elements like living standards, health, and education, in addition to monetary hardship. From 53.8% in 2005–06 to 16.4% in 2019–21 and then to 15.5% in 2022–23, the Multidimensional Poverty Index (MPI) has decreased.
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