Significant Decline in India's Extreme Poverty Rate
India has achieved a remarkable reduction in extreme poverty, with the rate falling from 27.1% in 2011-12 to just 5.3% in 2022-23. This represents a dramatic improvement in living standards over the past decade and a half, according to recently released World Bank figures.
Massive Number of People Lifted Out of Poverty
The number of people living in extreme poverty has declined from approximately 344.47 million in 2011-12 to around 75.24 million in 2022-23. This means that roughly 269 million individuals have been lifted out of extreme poverty within this time frame.
Key Contributing States
States such as Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh have played a crucial role in this progress. Together, these states accounted for 65% of the country’s extreme poor in 2011-12 and contributed to about two-thirds of the overall reduction by 2022-23.
Broad-Based Improvements Across Urban and Rural Areas
The World Bank's assessment, based on the $3.00 per day international poverty line (2021 prices), indicates a broad-based decline in extreme poverty across both rural and urban sectors:
- Rural extreme poverty declined from 18.4% to 2.8%
- Urban extreme poverty dropped from 10.7% to 1.1%
Using the $2.15 per day poverty threshold (2017 prices), the share of people living in extreme poverty dropped to 2.3% in 2022-23, down significantly from 16.2% in 2011-12.
Reduction in Poverty Population by Lower Consumption Thresholds
The number of Indians living below the $2.15 per day poverty line decreased from about 205.93 million in 2011 to approximately 33.66 million in 2022.
Progress in Multidimensional Poverty Reduction
India has also made substantial strides in reducing multidimensional poverty, which considers various deprivations beyond income. The Multidimensional Poverty Index (MPI) declined from 53.8% in 2005-06 to 16.4% by 2019-21 and further to 15.5% in 2022-23.
Government Initiatives Supporting Poverty Alleviation
Government programs have been instrumental in this progress, focusing on empowerment, infrastructure, and social inclusion. Key initiatives include:
- PM Awas Yojana – affordable housing
- PM Ujjwala Yojana – provision of clean cooking fuel
- Jan Dhan Yojana – enhancing financial inclusion
- Ayushman Bharat – healthcare access
Additionally, the deployment of Direct Benefit Transfer (DBT), digital inclusion, and improved rural infrastructure has ensured transparency and efficient delivery of benefits to over 250 million people, supporting their escape from poverty.