Logo

India's Extreme Poverty Plummets to 5.3% in 2022-23, Lifting 171 Million People

India has made substantial strides in reducing extreme poverty, lowering the rate to 5.3% in 2022-23 from 27.1% in 2011-12, despite updated poverty thresholds. Approximately 171 million people have been lifted out of poverty, driven by effective social programs and economic growth, though challenges remain in maintaining this trajectory amid global uncertainties.

India's Extreme Poverty Plummets to 5.3% in 2022-23, Lifting 171 Million People

Significant Decline in Extreme Poverty in India by 2022-23

India has achieved a remarkable reduction in extreme poverty over the past decade, with the extreme poverty rate dropping to 5.3% in 2022-23 from 27.1% in 2011-12. This progress comes despite a revision of the global poverty threshold to $3 per day, reflecting inflation and cost of living adjustments.

Updated Poverty Threshold and Statistics

The World Bank's revised poverty line, set at $3 per day in 2021 purchasing power parity (PPP) terms, represents a 15% increase from the previous $2.15 threshold due to inflation between 2017 and 2021. Under this revised standard, it is estimated that approximately 54.7 million Indians live on less than $3 per day as of 2024, corresponding to a 5.44% poverty rate.

Changes in Extreme and Middle-Income Poverty Rates

  • The extreme poverty rate fell sharply from 16.2% to 2.3% between 2011-12 and 2022-23.
  • Poverty according to the lower middle-income country (LMIC) line also declined dramatically by 33.7 percentage points over the same period.

Regional and Socioeconomic Insights

Reduction in poverty has been supported by targeted social policies including free and subsidized food transfers, which have also narrowed the poverty gap between rural and urban areas. Notably:

  • The rural extreme poverty rate dropped from 18.4% to 2.8%.
  • Urban extreme poverty declined from 10.7% to 1.1%.
  • The rural-urban poverty gap shrank considerably, from 7.7 to 1.7 percentage points.
  • The five most populous states account for 54% of India’s extremely poor population.

Economic Outlook and Risks

As of fiscal year 2025, India's real GDP remains approximately 5% below the pre-pandemic growth trend. However, there is an expectation of gradual recovery and convergence back to potential growth levels by 2027-28, contingent on resolution of global uncertainties.

Nevertheless, significant risks persist, including potential policy shifts and elevated trade tensions that could negatively impact export demand and delay investment recovery.

Key economic indicators forecast include:

  • A current account deficit averaging around 1.2% of GDP over fiscal years 2026-28.
  • Stable foreign exchange reserves projected to remain at approximately 16% of GDP.

Conclusion: A Decade of Poverty Reduction Milestones

Over the last decade, India has lifted approximately 171 million people out of extreme poverty, a testament to the effectiveness of policy measures and economic growth. Continued efforts will be necessary to sustain and accelerate this progress amidst ongoing global challenges.

Trump's 'One Big Beautiful Bill' Raises SNAP Work Requirements, Singles Out Single Parents
Trump's 'One Big Beautiful Bill' Raises SNAP Work Requirements, Singles Out Single Parents

In a close 215-214 vote, the House approved President Trump's expansive 'One Big Beautiful Bill,' featuring stricter work requirements for SNAP recipients. Parents with children aged 7 to 17 must work 80 hours per month, but married couples can split this obligation, leaving single parents, mostly women, disproportionately burdened. Critics warn this may increase food insecurity despite exemptions for certain groups.

India's Economy Grows 7.4% in March Quarter, Surpassing Expectations
India's Economy Grows 7.4% in March Quarter, Surpassing Expectations

India’s economy expanded by 7.4% in the March quarter of 2025, outperforming forecasts amid global economic challenges. Strong domestic demand and accommodative monetary policy supported growth, while ongoing trade negotiations with the U.S. and geopolitical tensions remain key factors. The IMF projects India will surpass Japan’s GDP this year, signaling significant economic advancement.

Is India the World’s Fourth Largest Economy? A Closer Look Beyond GDP
Is India the World’s Fourth Largest Economy? A Closer Look Beyond GDP

India is expected to become the world's fourth largest economy in 2025 according to GDP estimates using market exchange rates. However, GDP alone does not reflect living standards, income distribution, or social progress. When measured by purchasing power parity (PPP), India has been the third largest economy since 2009. Per capita income figures reveal India remains a lower middle-income country, highlighting the need for broader socio-economic indicators to assess development accurately.

India's Central Bank Cuts Benchmark Rate by 50 Basis Points to 5.5%
India's Central Bank Cuts Benchmark Rate by 50 Basis Points to 5.5%

India's central bank enacted a larger-than-anticipated policy rate cut, lowering the benchmark rate to 5.5%, its lowest level since August 2022. This marks the third consecutive reduction since February and follows stronger-than-expected 7.4% GDP growth in the last fiscal quarter. Inflation remains subdued at 3.16%, and currency conditions provide room for easing, while the full-year GDP forecast remains at 6.5%.

India's Extreme Poverty Rate Drops to 5.3% with World Bank’s $3-a-Day Benchmark
India's Extreme Poverty Rate Drops to 5.3% with World Bank’s $3-a-Day Benchmark

India has experienced a substantial decline in extreme poverty, with the rate falling to 5.3% in 2022-23 under the World Bank’s revised poverty line of $3 per day, down from 27.1% in 2011-12. The number of people in extreme poverty reduced from 344 million to 75 million. Poverty rates across rural and urban areas and multidimensional poverty indices also show marked improvements. Updated 2023-24 poverty data will be released in October.

India Set to Become World's Third Largest Economy by 2047
India Set to Become World's Third Largest Economy by 2047

India’s economy is on course to become the third-largest worldwide by 2047, supported by a large young population and robust reforms such as the Make in India initiative. With a projected GDP of $30 trillion and rising manufacturing output across key sectors, India is emerging as a major global economic powerhouse with a rapidly improving business climate and expanding middle class.

World Bank Maintains India's FY26 GDP Growth at 6.3% Amid Global Slowdown
World Bank Maintains India's FY26 GDP Growth at 6.3% Amid Global Slowdown

The World Bank has reaffirmed India's GDP growth forecast at 6.3% for FY25-26, positioning India as the fastest-growing major economy amid a global slowdown. Global growth for 2025 is projected at 2.3%, the slowest since 2008 outside recessions. Trade tensions and policy uncertainty are key headwinds, but India's robust services sector and accommodative domestic policies offer growth stability.

China Introduces Senior Subsidy Vouchers to Boost Elderly Care and Consumption
China Introduces Senior Subsidy Vouchers to Boost Elderly Care and Consumption

In a move to alleviate the economic pressures of an aging society, China plans to issue monthly electronic subsidy vouchers for seniors classified as disabled. These vouchers, valued between 500 and 800 yuan, will cover essential elderly-care services such as meals and rehabilitation. The initiative not only aims to lighten the caregiving burden on families but also to stimulate growth in the silver economy by encouraging consumption in this expanding market segment. Experts view this as a crucial step toward strengthening China's social safety net amidst broader demographic and economic challenges.

Trump's Tax Plan Tests Economic Theory and GOP Unity Amid Debt Concerns
Trump's Tax Plan Tests Economic Theory and GOP Unity Amid Debt Concerns

President Trump's tax cut proposal faces widespread skepticism as concerns rise over its potential to increase the national debt. While the administration argues that accelerated economic growth and tariff revenues will offset deficits, many economists and Republicans doubt these optimistic projections. The plan's emphasis on growth without substantial spending cuts or realistic fiscal discipline has generated political divisions. Rising borrowing costs and legal hurdles compound the challenges. Experts estimate stabilizing the debt would require far greater deficit reductions than the current plan offers, highlighting persistent risks to fiscal and economic sustainability.

Stock Market Faces Risks as Tariff Effects and Inflation Concerns Grow
Stock Market Faces Risks as Tariff Effects and Inflation Concerns Grow

The market's recent recovery above April lows may be unstable as the full economic effects of elevated tariffs come into focus. Experts highlight stretched valuations, rising inflation risks, and ongoing trade uncertainties. While a recession is not anticipated, investors should watch consumer spending and employment data closely, as these indicators will influence market trajectories in the months ahead.

India-US Mega Trade Deal Nears Completion to Boost Bilateral Trade to $500B
India-US Mega Trade Deal Nears Completion to Boost Bilateral Trade to $500B

India and the United States are nearing completion of a comprehensive trade agreement currently termed 'Mission 500,' aiming to raise annual bilateral trade from $190 billion to $500 billion by 2030. This deal promises significant growth in sectors like pharmaceuticals, agriculture, manufacturing, and consumer products. Indian consumers are set to benefit from lower prices on American goods due to expected duty cuts. While promising enhanced investment flows and global supply chain integration, challenges remain around labor mobility and data regulation. The agreement marks a strategic step as India strengthens commercial ties with its largest trading partners.

India's Extreme Poverty Rate Plummets to 5.3%, Over 269 Million Rise Above Poverty
India's Extreme Poverty Rate Plummets to 5.3%, Over 269 Million Rise Above Poverty

India has achieved a significant reduction in extreme poverty, with the rate falling from 27.1% in 2011-12 to 5.3% in 2022-23. This equates to over 269 million individuals escaping poverty, even under stricter measurement criteria. Five states contributed substantially to this decline, reflecting effective socio-economic progress amid global challenges.

Sweden Faces Economic Challenges Amid U.S. Trade Tariffs and Market Uncertainty
Sweden Faces Economic Challenges Amid U.S. Trade Tariffs and Market Uncertainty

The Swedish economy and households are feeling the impact of U.S. trade tariffs, causing market fluctuations and lowered growth projections. High household savings exposed to investment volatility, alongside export dependency on the U.S., create vulnerabilities. Consumer confidence has declined, and businesses are delaying investments amid uncertain trade negotiations.

World Bank Slashes Global Growth Forecast to 2.3% Amid Trade Tensions
World Bank Slashes Global Growth Forecast to 2.3% Amid Trade Tensions

The World Bank has cut the 2025 global economic growth forecast to 2.3%, citing escalating trade tensions and rising barriers impacting global trade and supply chains. India is projected as the fastest-growing major economy at 6.3%, while developed economies like the US and EU face downward revisions. Low-income countries are expected to endure prolonged recovery periods.

ADB and World Bank Approve $1.5B Loans to Boost Bangladesh’s Banking and Climate Efforts
ADB and World Bank Approve $1.5B Loans to Boost Bangladesh’s Banking and Climate Efforts

The Asian Development Bank and World Bank have endorsed $1.5 billion in loans to Bangladesh, focusing on banking sector stabilization, climate-resilient development, and enhancing gas supply with improved air quality. These projects aim to strengthen economic stability and environmental sustainability, while easing foreign currency pressure on the country.

India’s Poverty Rate at 28% Challenges Claims of High Equality, Experts Say
India’s Poverty Rate at 28% Challenges Claims of High Equality, Experts Say

Despite the central government’s claim that India is among the world’s most equal societies based on a decline in consumption inequality, the high poverty rate of 28.1% and significant wage disparities paint a complicated picture. Experts caution that changes in data collection and outdated poverty benchmarks limit the accuracy of such claims. This prompts urgent calls for updated poverty measures and inclusive policies to address growing inequalities.

How China Leverages Rare Earths to Gain Edge in US Trade Dispute
How China Leverages Rare Earths to Gain Edge in US Trade Dispute

China has long sought to use its dominance in rare earth elements as leverage in trade disputes, now implementing a licensing system that controls critical exports. This mechanism mirrors US export controls and impacts global industries reliant on rare earths for technologies like electric vehicles and precision weapons. The export restrictions have disrupted supply chains and intensified geopolitical competition, highlighting the strategic significance of these materials. The opaque approval process adds uncertainty, making rare earth exports a pivotal factor in US-China relations and global supply vulnerabilities.

Ukrainian Drone Strike Damages 10% of Russia's Strategic Bomber Fleet
Ukrainian Drone Strike Damages 10% of Russia's Strategic Bomber Fleet

A Ukrainian drone attack recently inflicted damage on approximately 10% of Russia’s strategic bomber fleet, including TU-95 and TU-22 bombers and A-50 surveillance planes. The strike targeted multiple airfields near Moscow and in the Murmansk region. While Russia retains much of its fleet, the attack disrupts its operational capabilities and exposes vulnerabilities in its nuclear triad air components.