India has seen a great reduction in its poverty rate since its Independence, with several factors, including government-launched schemes, helping its citizens uplift themselves to a better life. At the time of India’s independence in 1947, poverty was widespread, with nearly 70-80 per cent of the population living below the poverty line.
Situation during colonial era
Colonial exploitation, an agrarian economy, minimal industrial development, and low literacy levels contributed to this dire situation. The country faced food shortages, low incomes, and limited access to healthcare and education, leaving millions in extreme deprivation.
In the decades following independence, India began implementing social and economic reforms aimed at poverty alleviation. Land reforms, the Green Revolution, and investments in infrastructure helped improve agricultural productivity and rural incomes. By the late 1950s, poverty had declined slightly, with around 65% of the population still living below the poverty line. Growth was slow in the 1960s and 1970s, and periodic famines and economic stagnation limited progress.
Turnaround in the 1980s
The 1980s and 1990s saw more rapid reductions in poverty, driven by economic liberalisation, industrial growth, and expansion of social welfare programs. By 2011–12, around 22.9% of the population lived below the national poverty line.
The government also introduced schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Awas Yojana, and financial inclusion initiatives like Pradhan Mantri Jan Dhan Yojana, which provided employment, housing, and banking access to millions.
In recent years, extreme poverty in India has declined sharply. According to the World Bank, the proportion of people living under the Rs 175 per day international poverty line fell from 27.1 per cent in 2011–12 to around 5.3 per cent in 2022–23. This reduction translates to millions of people moving out of extreme deprivation. Multidimensional poverty, which includes access to education, healthcare, and basic services, has also declined significantly, reflecting improvements in overall quality of life.
Factors behind the reduction in India's poverty rate
Several factors have contributed to this progress, including sustained economic growth, government welfare programs, financial inclusion, rural development initiatives, and the empowerment of women through skill development and employment schemes. Despite this progress, challenges remain, particularly in rural areas and among marginalised communities, highlighting the need for continued focus on inclusive growth.
India’s journey from extreme poverty at independence to significant reductions today illustrates the impact of policy interventions, economic reforms, and development programs. While much has been achieved, sustained efforts are needed to ensure that the remaining population can achieve a dignified standard of living.
Several government schemes such as MGNREGA, Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), National Rural Livelihood Mission (NRLM) among others have proved fruitful in bringing this change.
