India's war on poverty: 171 million people rise above extreme deprivation

India's fight against poverty sees 171 million people lifted from extreme deprivation; MPI drops from 53.8% to 16.4%, reflecting a decade of transformative change across rural and urban areas

In its stride towards inclusive growth, India has achieved remarkable milestones in its battle against poverty, transforming lives across rural and urban landscapes. Over the past decade, India lifted 171 million people out of extreme poverty, according to the World Bank’s 2025 Spring Poverty and Equity Brief. 

The proportion of Indians living on less than $2.15 a day fell from 16.2 per cent in 2011–12 to just 2.3 per cent in 2022–23. At the $3.65 benchmark for lower-middle-income nations, poverty rates dropped from 61.8 per cent to 28.1 per cent, marking a monumental shift in livelihoods. 

The Multidimensional Poverty Index (MPI) also showcased progress, with poverty levels plummeting from 53.8 per cent in 2005–06 to 16.4 per cent in 2019–21, according to a government report titled ‘Sabka saath sabka vikas sabka vishwas sabka prayas’.

 

 

Better living standards and more jobs

>Rural monthly per capita consumption (MPCE) rose from ₹1,430 in 2011–12 to ₹4,122 in 2023–24, nearly a threefold increase.

>Urban monthly per capita consumption increased from ₹2,630 to ₹6,996 over the same period.  >The EPFO reported a net addition of 1.456 million members in March 2025, indicating growing formalisation of jobs, according to the report.

 

Provision for water, housing, electricity

The government’s commitment to ensuring essential services is evident. Under the Jal Jeevan Mission, 155.9 million rural households now have tap water connections. Housing for all has become a reality with nearly 40 million homes completed under the Pradhan Mantri Awas Yojana (PMAY), including over nine million urban homes predominantly owned by women. Electrification efforts through SAUBHAGYA reached 28.6 million households, enhancing rural supply from 12.5 to 22.6 hours daily. 

Ayushman Bharat scheme now covers 550 million people, extending healthcare access to the vulnerable. Meanwhile, Swachh Bharat Mission delivered over 120 million household toilets, transforming sanitation. The Pradhan Mantri Garib Kalyan Anna Yojana ensured food security for 810 million beneficiaries, with an allocation of ₹11.80 trillion until 2028. 

 

 

Financial security and livelihoods

Financial inclusion got a boost through the PM Jan Dhan Yojana, with 551.7 million bank accounts and ₹2.61 trillion in deposits. The Pradhan Mantri Mudra Yojana sanctioned ₹34.11 trillion in loans, with 68 per cent allocated to women entrepreneurs.  Financial security schemes Stand-Up India and PM SVANidhi further empowered street vendors and entrepreneurs. For artisans, the PM Vishwakarma scheme registered 2.37 million, revitalising traditional skills, the report said. 

Meanwhile, India’s startup ecosystem boasts over 157,000 recognised startups and 118 unicorns now. The eShram Portal has registered 308.6 million unorganised workers, 53.75 per cent of whom are women. Pension security expanded through the Pradhan Mantri Shram Yogi Mandhan Scheme, covering over 5.1 million unorganised workers. The Lakhpati Didi initiative aims to uplift three crore women to income levels exceeding ₹1 lakh annually. 

The government ensured dignity for all by implementing the Transgender Persons (Protection of Rights) Act, 2019, alongside initiatives like the SMILE scheme and Garima Greh shelter homes. Persons with disabilities received 3.116 million assistive devices under the ADIP scheme, fostering social and economic empowerment.

 

Inclusive growth for SCs, STs, OBCs, minorities

Targeted welfare measures have ensured 44.19 per cent of rural homes under PMAY(G) went to SC/ST families. SC/ST/OBC farmers account for 71 per cent of PM Fasal Bima Yojana beneficiaries, while 58 per cent of scholarships go to these groups. Eklavya schools rose from 123 to 477 since 2014, expanding educational opportunities, the report said. 

The Viksit Bharat Sankalp Yatra and Aspirational Districts Programme exemplify efforts to ensure last-mile delivery of welfare schemes. The Yatra reached 260,000 gram panchayats and 4,000 urban bodies, while the Aspirational Districts Programme transformed India’s most backward areas.