India has achieved a significant milestone in its fight against extreme poverty, with the latest World Bank data showing a dramatic decline in the extreme poverty rate from 27.1 per cent in 2011-12 to just 5.3 per cent in 2022-23. The number of people living in extreme poverty dropped from 344.47 million to 75.24 million over the 11-year period, indicating that 269 million people were lifted out of extreme poverty.
The progress is attributed to comprehensive policy initiatives and economic reforms over the past decade, particularly under Prime Minister Narendra Modi’s leadership. According to the data, five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh—accounted for 65 per cent of the country’s extreme poor in 2011-12 and contributed to two-thirds of the national poverty reduction by 2022-23.
Decline in extreme poverty rate in India
The World Bank’s assessment is based on the international poverty line of $3.00 per day (2021 prices) and reveals a broad-based decline in poverty across both rural and urban regions. Rural extreme poverty fell from 18.4 per cent to 2.8 per cent, while urban extreme poverty declined from 10.7 per cent to 1.1 per cent over the same period.
Using the earlier benchmark of $2.15 per day (2017 prices), the poverty rate dropped from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022. The number of Indians below this threshold fell from 205.93 million to 33.66 million.
Multidimensional Poverty Index
India has also made notable progress in reducing multidimensional poverty. The Multidimensional Poverty Index (MPI), which accounts for deprivations across health, education and standard of living, fell from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21 and further to 15.5 per cent in 2022-23.
Modi government's schemes to alleviate poor
As the BJP-led NDA government marks 11 years in office, Prime Minister Modi has highlighted transformative efforts such as PM Awas Yojana, PM Ujjwala Yojana, Jan Dhan Yojana and Ayushman Bharat. These initiatives have expanded access to housing, clean cooking fuel, banking services and healthcare.
Additionally, Direct Benefit Transfer (DBT), digital inclusion and strengthened rural infrastructure have improved transparency and ensured that welfare benefits reach the most marginalised. These combined efforts have helped over 250 million people rise above the poverty line.
