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Reduction in Extreme Poverty

  • 07 Jun 2025

In June 2025, World Bank reported that India has achieved a major milestone in poverty reduction, with the extreme poverty rate falling from 27.1% in 2011-12 to 5.3% in 2022-23, lifting 269 million people out of poverty.

Key Points

  • Sharp Decline in Poverty: The number of people in extreme poverty dropped from 344.47 million in 2011-12 to 75.24 million in 2022-23, according to World Bank data.
  • Regional Progress: States like Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—once home to 65% of India’s poor—contributed to two-thirds of the national poverty reduction.
  • $2.15 Poverty Line Benchmark: Using the older international poverty line of $2.15/day (2017 prices), India’s poverty rate fell from 16.2% in 2011 to 2.3% in 2022, reducing the poor from 205.93 million to 33.66 million.
  • Urban & Rural Impact: Rural poverty fell from 18.4% to 2.8%, while urban poverty declined from 10.7% to 1.1% between 2011 and 2022.
  • Multidimensional Poverty Drop: India’s MPI dropped from 53.8% in 2005-06 to 15.5% in 2022-23, reflecting improvements in health, education, and living standards.
    Government Schemes: Initiatives such as PM Awas Yojana, PM Ujjwala Yojana, Jan Dhan Yojana, and Ayushman Bharat played a key role, along with Direct Benefit Transfers and better rural infrastructure.