India’s Poverty Plunge: 269 Million Rise Out of Extreme Poverty, World Bank Finds

As per the figures, extreme poverty dropped to 5.3 per cent in 2022–23, down from 27.1 per cent in 2011–12, translating to a fall from 344.47 million people living in extreme poverty to 75.24 million.

Rural extreme poverty saw a steep decline from 18.4 per cent to 2.8 per cent.

Source : Freepik

India has witnessed a major reduction in extreme poverty levels over the past decade, with the latest data from the World Bank highlighting a transformative shift. As per the figures, extreme poverty dropped to 5.3 per cent in 2022–23, down from 27.1 per cent in 2011–12. In numerical terms, this translates to a fall from 344.47 million people living in extreme poverty to 75.24 million.

This decline amounts to 269 million individuals being lifted out of extreme poverty within a span of roughly 11 years. The World Bank's findings reflected an encouraging nationwide trend, with both rural and urban areas showing significant improvement, reported IANS.

Five States Drive Most of the Progress

Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh—states that together made up 65 per cent of India’s extreme poor population in 2011–12—were instrumental in this progress. By 2022–23, these states contributed to two-thirds of the total reduction in extreme poverty.

“In absolute terms, people living in extreme poverty fell from 344.47 million to just 75.24 million,” showed the latest data from the World Bank.

The World Bank used the updated $3.00 per day international poverty threshold (based on 2021 prices) for its analysis. According to older standards set at $2.15 per day (using 2017 prices), the poverty rate declined from 16.2 per cent in 2011–12 to 2.3 per cent in 2022. This corresponded to a fall in the number of poor individuals from 205.93 million to 33.66 million.

Broad-Based Gains in Rural and Urban India

The trend was consistent across geographies. Rural extreme poverty saw a steep decline from 18.4 per cent to 2.8 per cent. Urban areas witnessed a similar improvement, with the rate reducing from 10.7 per cent to just 1.1 per cent over the same period.

In addition to income-based poverty, India also achieved progress in tackling multidimensional poverty, the data showed. The Multidimensional Poverty Index (MPI) stood at 53.8 per cent in 2005–06. By 2019–21, this had dropped to 16.4 per cent, and further declined to 15.5 per cent by 2022–23.

Modi Government Credits Welfare Initiatives for Change

As the BJP-led NDA government marked 11 years in power, Prime Minister Narendra Modi emphasised the administration's focus on inclusive growth and poverty eradication. The implementation of Direct Benefit Transfer (DBT), digital infrastructure expansion and strengthened rural connectivity have also played a pivotal role in delivering government benefits efficiently. Flagship schemes such as the PM Awas Yojana, PM Ujjwala Yojana, Jan Dhan Yojana, and Ayushman Bharat have helped improve access to essential services like housing, clean fuel, financial inclusion and healthcare. According to the Centre, these combined efforts have empowered over 25 crore people to rise above poverty.