Gravitas | India records one of world's fastest poverty declines, lifts over 49 crore people out of poverty

In a moment of pride for India, a new World Bank report has highlighted how the country has recorded one of the world’s fastest declines in poverty.

According to the report, India has made remarkable progress in reducing poverty across different parameters. A staggering 49.6 crore people were lifted out of poverty between 2011 and 2023, as the share of those living on less than $4.2 per day fell from 57.7 per cent to 16.1 per cent. This is expected to decline further to 12.1 per cent by 2028.

When it comes to extreme poverty, which measures people living on less than $3 per day, India has also made significant progress. The figure fell from 27.1 per cent in 2011 to 2.6 per cent in 2023.

While living standards improved across most states, households in a contiguous belt stretching from Uttar Pradesh to West Bengal account for about 57 per cent of India's poor population.

But what is behind India's success story?

According to the World Bank, rising employment is one of the key factors. Between 2017 and 2023, 13.4 crore more people got jobs. This was nearly twice the growth in the working-age population.

Crucially, much of this gain was driven by more rural women entering the workforce. This, in turn, raised the number of earning members per household. The report also highlighted that labour force participation and employment rates remain resilient.

The World Bank has also attributed India's drastic poverty reduction to stronger consumption growth and expanded social transfers, including food subsidies.

Apart from subsidised ration, the Government of India has been providing five kilograms of free ration every month to at least 81 crore beneficiaries since the COVID-19 outbreak in 2020.

Speaking at a public event marking 25 years in public service, PM Modi presented India's achievement on the poverty front as a reflection of the collective efforts of 140 crore Indians.

Amid the substantial reduction in poverty, the World Bank also issued a note of caution. The gap between the country's highest-paid and lowest-paid workers remains high, with the top 10 per cent earning around 13 times more than the bottom 10 per cent.

Nevertheless, the World Bank's report signals how India is effectively dealing with challenges as it races towards becoming the world's third-largest economy.