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

From 344 million to 75 million, World Bank says India's extreme poor shrank sharply over 11 years

India’s extreme poverty rate dropped to 5.3 per cent in 2022-23 from 27.1 per cent in 2011-12, according to the latest estimates released by the World Bank. The decline amounts to 269 million people moving above the international poverty threshold over an 11-year period.

 

The number of individuals classified as living in extreme poverty fell from 344.47 million in 2011-12 to 75.24 million in 2022-23. The assessment is based on the $3.00 per day poverty line (in 2021 purchasing power parity terms).

 

The data indicates that five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—accounted for 65 per cent of India’s extreme poor in 2011-12. These same states contributed to two-thirds of the overall reduction in poverty by 2022-23.

 

According to the World Bank, rural extreme poverty dropped from 18.4 per cent to 2.8 per cent during the period, while urban extreme poverty decreased from 10.7 per cent to 1.1 per cent.

 

At the earlier $2.15 per day poverty line (based on 2017 prices), the extreme poverty rate was recorded at 2.3 per cent in 2022, down from 16.2 per cent in 2011-12. In terms of absolute numbers, those living below this line declined from 205.93 million in 2011 to 33.66 million in 2022.

 

The World Bank data also showed progress in multidimensional poverty. The Multidimensional Poverty Index (MPI) was at 53.8 per cent in 2005-06. It fell to 16.4 per cent in 2019-21 and further to 15.5 per cent in 2022-23.

 

Government programmes mentioned in the context of poverty reduction include PM Awas Yojana, PM Ujjwala Yojana, Jan Dhan Yojana, and Ayushman Bharat. These initiatives cover sectors such as housing, clean cooking fuel, financial inclusion, and healthcare access. 

Systems like Direct Benefit Transfer (DBT), digital services expansion, and rural infrastructure development have also been cited as mechanisms enabling more targeted delivery of benefits.