Context:

According to the latest World Bank data, India has achieved a landmark milestone in poverty reduction, with 269 million people lifted out of extreme poverty between 2011-12 and 2022-23.

About World Bank poverty line:

The World Bank defines extreme poverty as individuals living on less than a specific amount of money per person per day, adjusted using Purchasing Power Parity (PPP) to account for differences in the cost of living and inflation between countries. Currently, the World Bank's International Poverty Line (IPL) is set at $3.00 per person per day, according to the World Bank. This line is used to measure extreme poverty in low-income economies.

• Low-Income Countries: $3 per person per day, up from $2.15
• Lower Middle-Income Countries (LMIC): $4.20 per person per day, up from $3.65
• Upper Middle-Income Countries: $8.40 per person per day, up from $6.85 (some sources state $8.30)

Key finding by the World Bank:

The total number of Indians living in extreme poverty—dropped from 344.47 million in 2011-12 to 75.24 million in 2022-23.

·        Extreme Poverty Rate: India's extreme poverty rate dropped to 5.3% in 2022-23 from 27.1% in 2011-12.

·        Rural and Urban Poverty: Rural extreme poverty decreased from 18.4% to 2.8%, while urban extreme poverty declined from 10.7% to 1.1% during the same period.

·        States Contributing to Poverty Reduction: Five states - Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh - accounted for 65% of India's extreme poor in 2011-12 and contributed to two-thirds of the overall reduction in poverty by 2022-23.

Multidimensional Poverty Progress

Beyond income-based metrics, India also made significant progress in Multidimensional Poverty Index (MPI) indicators, which consider access to health, education, and living standards.

• In 2005-06, MPI stood at 53.8%.
• It fell to 16.4% by 2019-21.
• By 2022-23, MPI had declined further to 15.5%, signaling improvements in access to healthcare, schooling, sanitation, and basic services.

Driver of poverty reduction:

The World Bank report attributes this sharp poverty reduction to a combination of targeted welfare programs and economic growth, backed by technology and governance reforms. Key initiatives include:

• PM Awas Yojana – Affordable housing for rural and urban poor.
• PM Ujjwala Yojana – Distribution of free LPG connections to promote clean cooking fuel.
• Pradhan Mantri Jan Dhan Yojana – Financial inclusion through bank accounts.
• Ayushman Bharat – Free healthcare coverage for low-income families.
• Direct Benefit Transfer (DBT) – Ensures subsidies reach beneficiaries directly, reducing leakage.
• Digital public infrastructure – Platforms like Aadhaar and mobile banking have expanded access and transparency.

Conclusion:

India’s remarkable journey from 344 million people living in extreme poverty to 75 million in just over a decade underscores a transformative phase in its development trajectory. With continued focus on inclusive growth, digital governance, and social welfare, the country appears poised to further narrow its poverty gap—potentially serving as a global model for poverty alleviation.