AMN / New Delhi
The World Bank has reported a dramatic fall in the country’s extreme poverty rate—from 27.1% in 2011-12 to just 5.3% in 2022-23. This translates to a staggering 269 million Indians escaping extreme poverty over a span of 11 years.
In absolute numbers, the count of people living in extreme poverty has plummeted from 344.47 million in 2011-12 to 75.24 million in 2022-23. The achievement is even more significant considering the size and diversity of India’s population, with five major states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—spearheading the progress. These states, which once accounted for two-thirds of India’s poorest, were instrumental in driving nearly 65% of the overall poverty reduction.
Poverty Line Recalibrated, India Still Shines
Using the global extreme poverty threshold of $2.15/day (2017 prices), the poverty rate in India has dropped from 16.2% in 2011 to 2.3% in 2022, slashing the number of people under this line from 205.93 million to just 33.66 million. Under the updated $3/day poverty line (2021 prices), the improvements remain substantial, underscoring India’s progress by international standards.
Urban-Rural Gains: A Balanced Progress
Both rural and urban India have benefited from this economic turnaround. Rural poverty saw a dramatic fall from 18.4% to 2.8%, while urban poverty slid from 10.7% to 1.1%. This balanced development indicates a broad-based and inclusive approach to economic growth and social welfare.
Beyond Income: Multidimensional Poverty Also Falls
India’s battle against poverty has extended beyond just income. According to the Multidimensional Poverty Index, which also measures access to education, healthcare, and living standards, the poverty rate dropped from 53.8% in 2005-06 to 15.5% in 2022-23. This reflects deep-rooted structural improvements in people’s lives, not just their earnings.
These programs, alongside Direct Benefit Transfers (DBTs), digital governance, and improved rural infrastructure, have collectively empowered over 250 million people to rise above poverty. By cutting out middlemen and ensuring transparency, these initiatives have created a more efficient welfare delivery system.
A Transformational Decade
India’s journey over the last decade marks a global success story in poverty alleviation. With strong policy support, targeted welfare schemes, and technological innovation, the country has not only reduced extreme poverty but also enhanced the overall quality of life for millions. The World Bank’s findings serve as a powerful validation of India’s focused and inclusive approach to growth.