Extreme poverty in India sees sharp decline! Number dips from 344.47 million to 75.24 million; poverty rate down to 5.3%, says World Bank
The number of people in India living in extreme poverty declined sharply in the last decade, from 27.1% to 5.3%, as per latest data estimates released by the World Bank. According to the World Bank’s global poverty update, from 2011-12 to 2022-23, the number of people living under extreme poverty in India dipped from 344.47 million to 75.24 million. This means that approximately 269 million people came out of poverty during this time period.The World Bank’s latest assessment reveals this substantial poverty reduction despite implementing a stricter measurement criteria, which includes raising the poverty benchmark to $3 daily consumption from the previous $2.15, whilst incorporating the 2021 Purchasing Power Parities (PPPs).Five states – Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh – which previously had 65% of India’s extreme poor in 2011-12, were responsible for two-thirds of the total reduction in extreme poverty by 2022-23.
World Bank Poverty Estimates for India
According to the previous $2.15 poverty threshold (calculated using 2017 prices), the proportion of Indians experiencing extreme poverty decreased to 2.3% in 2022-23, compared to 16.2% in 2011-12. This significant decline translated to a reduction in the number of people living in extreme poverty from 205.93 million in 2011-12 to 33.66 million in 2022-23. This improvement indicates that 172 million individuals rose above the specified poverty threshold during this timeframe.The World Bank has adjusted its lower-middle-income category poverty threshold to $4.20 per day, increased from $3.65 (2017 prices). According to this revised measure, the proportion of Indians below this line decreased significantly from 57.7% in 2011-12 to 23.9% in 2022-23.Also Read | Explained in charts: India to become 4th largest world economy soon. What’s the road ahead to No.3 spot?During this 11-year period, the absolute number of people under the LMIC threshold reduced substantially from 732.48 million to 342.32 million.Following these World Bank revisions, the global extreme poverty rate for 2022 was adjusted upwards from 9% to 10.5%. Consequently, the count of people living under the international poverty line increased from 713 million to 838 million individuals.
