India’s Remarkable Progress: Extreme Poverty Rate Plummets to Historic Low

India’s extreme poverty rate fell from 27.1% in 2011-12 to 5.3% in 2022-23, lifting 269 million people above the $3.00 per day poverty line. Rural poverty dropped to 2.8%, urban to 1.1%. Five states—UP, Maharashtra, Bihar, West Bengal, and MP—led the transformation. Multidimensional poverty also decreased significantly. Government initiatives like PM Awas Yojana, Ujjwala Yojana, and DBT have played key roles. Sustained policies and inclusive growth remain essential to continuing this remarkable progress.

India has achieved a significant milestone in its fight against poverty, with the extreme poverty rate dropping to an impressive 5.3% in 2022-23 from 27.1% in 2011-12. This achievement, as highlighted by the World Bank’s most recent estimates, translates into 269 million people moving above the international poverty line over the past 11 years.

The number of individuals classified as living in extreme poverty has diminished drastically, from 344.47 million in 2011-12 to just 75.24 million in 2022-23. The assessment is based on the international threshold of $3.00 per day (adjusted for 2021 purchasing power parity).

States Leading the Transformation

Five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—played a pivotal role in this transformation. These regions accounted for 65% of India’s extreme poor in 2011-12. By 2022-23, these same states contributed two-thirds of the country’s overall poverty reduction, showcasing their significant progress in combating poverty.

Rural vs. Urban Poverty Trends

The data reveals that rural India witnessed a sharper decline in extreme poverty compared to urban areas. Rural poverty plummeted from 18.4% in 2011-12 to a mere 2.8% in 2022-23. Meanwhile, urban extreme poverty dropped from 10.7% to an impressive 1.1% over the same period.

Notably, when assessed against the earlier $2.15 per day poverty line (adjusted for 2017 prices), India’s extreme poverty rate fell from 16.2% in 2011-12 to 2.3% in 2022. The absolute number of people living below this threshold declined from 205.93 million to 33.66 million during this timeframe, reflecting the success of targeted reforms and economic growth.

Multidimensional Poverty: A Broader Measure of Progress

Beyond income-based measures, strides have also been made in tackling multidimensional poverty, which considers factors like education, health, and living standards. India’s Multidimensional Poverty Index (MPI) stood at 53.8% in 2005-06 but has since dropped to 15.5% in 2022-23. This marks a substantial reduction from the 16.4% recorded in 2019-21.

Key Government Initiatives Driving Change

The World Bank report credits a range of government initiatives for catalyzing this transformation. Flagship programmes like the Pradhan Mantri Awas Yojana (housing for all), Pradhan Mantri Ujjwala Yojana (clean cooking fuel), Jan Dhan Yojana (financial inclusion), and Ayushman Bharat (healthcare access) have been instrumental in improving the quality of life for millions.

Additionally, systems such as Direct Benefit Transfer (DBT), the expansion of digital services, and investments in rural infrastructure have ensured that benefits reach the most vulnerable sections of society more effectively. These targeted measures, combined with robust economic policies, have created a strong foundation for sustainable poverty reduction.

The Road Ahead

India’s achievements in reducing extreme poverty underscore the importance of sustained policy efforts and inclusive growth. While the progress is commendable, continued focus on bridging gaps in education, healthcare, and employment opportunities will be key to ensuring that poverty reduction remains on track.

This historic achievement is a testament to India’s resilience and determination to uplift millions, offering hope and inspiration for other nations striving to combat poverty on a similar scale.