India lifts 269 million out of extreme poverty in 11 years: World Bank

In a significant achievement underscoring India’s developmental strides, the World Bank has reported a dramatic fall in the country’s extreme poverty rate—from 27.1 per cent in 2011-12 to just 5.3 per cent in 2022-23.

This translates to about 269 million Indians escaping extreme poverty over the past 11 years, according to newly released data that reflects updated global standards.

The assessment is based on the World Bank’s revised international poverty line of $3.00 per day, adjusted to 2021 purchasing power parity (PPP), up from the earlier threshold of $2.15 (2017 PPP).

The new benchmark aims to better represent present-day global price levels and cost-of-living conditions, offering a more realistic picture of deprivation.

Under this revised standard, the number of Indians living in extreme poverty dropped to 75.24 million in 2022-23, compared to 344.47 million in 2011-12.

The fall was particularly steep in rural India, where the poverty rate plummeted from 18.4 per cent to 2.8 per cent. In urban areas, extreme poverty declined from 10.7 per cent to just 1.1 per cent.

Five states drive the bulk of poverty reduction

Five of India’s most populous states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—were pivotal in driving this transformation. In 2011-12, they accounted for 65 per cent of the country’s extremely poor population.

By 2022-23, they contributed to two-thirds of the overall reduction in extreme poverty. However, these states still house over half of the country’s remaining extreme poor.

The World Bank also updated its lower-middle-income poverty line from $3.65 to $4.20 per day. By this metric, poverty in India fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23, indicating a significant decline in income vulnerability.

Complementing these trends, India’s Multidimensional Poverty Index (MPI)—which includes indicators such as education, health, and living standards—also registered a steep decline. The MPI dropped from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21 and further down to 15.5 per cent in 2022-23.

Economic growth, welfare schemes behind gains

Experts attribute the progress to sustained economic growth, job creation in urban and services sectors, and the effective rollout of government schemes.

Flagship initiatives like PM Awas Yojana, Jan Dhan Yojana, Ayushman Bharat, and Ujjwala Yojana have improved access to housing, healthcare, banking, and clean cooking fuel. Meanwhile, direct benefit transfers (DBT), digital infrastructure, and rural development efforts have enhanced transparency and last-mile delivery.

Despite these gains, economists caution that vulnerability remains high for many. Household consumption expenditure survey (HCES) data for 2023-24 reveals that 90 per cent of rural Indians still spend less than ₹5,763 per month, with the bottom 5 per cent surviving on just ₹1,677.

As India continues to evolve its poverty assessment tools, including plans by NITI Aayog to develop a new income-based poverty measure, the focus will likely shift from lifting people out of poverty to preventing those just above the line from falling back in.