BS EDIT: Progress on poverty: India needs fresh official estimates

By Business StandardPublished On Jun 10, 2025

Poverty has fallen sharply

Absolute poverty in India has dropped significantly in 20 years, but official estimates remain outdated

World Bank’s poverty lines

The World Bank recently raised its poverty line to $3 and $4.20 a day for low and lower middle-income countries

Extreme poverty declines

People below $3 a day fell from 27.1% in 2011-12 to 5.3% now; below $4.20 fell from 57.7% to 23.9%

Growth and schemes cut poverty

Economic growth and targeted schemes have helped reduce poverty more than other policies

Rural-urban gap remains

Poverty is higher in rural areas, but price differences need further study with new surveys

Need for fresh estimates

India must update poverty lines using recent survey data to guide policies and prevent setbacks

Data is key

Clear data will help assess welfare schemes and ensure India’s own poverty measures lead policy