With the World Bank’s latest report showing the proportion of people living on less than 2.15 US dollars a day, which is the international benchmark for extreme poverty, fell sharply from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022-23, the extreme poverty rate for India declines sharply to 5.3 per cent in 2022-23 from 27.1 per cent in 2011-12. Just some 3.3 crore Indians are extremely poor as against 23 crore a decade ago.
The World Bank finds that India has made strong gains in reducing poverty at the lower-middle-income level, measured at $3.65 per day. Millions have benefited from this broad-based growth across both rural and urban areas.
These indicators cover various aspects of poverty, including rates of poverty and the total number of poor, using both national poverty lines and international benchmarks ($2.15 for extreme poverty, $3.65 for lower-middle-income, and $6.85 for upper-middle-income).
Currently, the World Bank pegs extreme poverty reduced sharply from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23. While in rural areas it fell from 18.4 per cent to 2.8 per cent, in urban areas, it reduced from 10.7 per cent to 1.1 per cent. The gap between rural and urban poverty shrunk from 7.7 percentage points to 1.7 percentage points, with an annual decline rate of 16 per cent in a decade.
According to the World Bank report, if the five most populous States including Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh accounted for 65 per cent of India’s extreme poor in 2011-12, they contributed to two-thirds of the overall decline in extreme poverty by 2022-23.
The share of Indians living below the revised lower-middle-income category (LMIC) poverty line of $4.20 per day (from $3.65 in 2017 prices) also fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23. In absolute numbers, people living under the revised LMIC poverty line dips from 732.48 million to 342.32 million in a period of 11 years.
The Poverty and Equity Briefs (PEBs) from the World Bank highlight trends in poverty, shared prosperity, and inequality for over 100 developing countries. Published twice a year for the Spring and Annual Meetings of the World Bank Group and the International Monetary Fund, these briefs offer a snapshot of a country’s poverty and inequality context, ensuring poverty reduction remains a global priority. Each PEB includes a two-page summary that presents recent developments in poverty reduction, along with updated data on key development indicators.
The report notes that significant progress has been made in reducing extreme poverty across India, with key States playing a vital role in both the decline of poverty and the advancement of inclusive development. As per
World Bank’s report, India has made significant strides in reducing non-monetary poverty, and future poverty estimates are expected to change based on updated global standards.
The Spring 2025 World Bank’s Poverty and Equity Brief highlights these achievements. It underscores the country’s commitment to inclusive development. The sharp decline in both extreme and lower-middle-income poverty, along with the narrowing rural-urban poverty gap, reflects the effective efforts of the Government of India.
Additionally, the rise in employment, especially among women, and the reduction in multidimensional poverty point to broader improvements in living standards. As India continues its journey, these achievements serve as a solid foundation for sustained progress in tackling poverty and inequality.
Notably, not all in the country are convinced that poverty has well and truly declined to the extent the statistics suggest and call for careful scrutiny. Critics counter that there’s really no glory in telling people stuff they either don’t believe or cannot accept as ground reality. They reason that in the absence of broad-based growth, there’s no way of spinning the math to make poverty numbers look rosy and without growth, nothing can actually kill poverty.