The World Bank has shared some good news — extreme poverty in India has dropped sharply over the past decade. In 2011-12, 27.1% of Indians were living in extreme poverty. By 2022-23, that number had fallen to just 5.3%.
The World Bank also updated what it means to live in “extreme poverty.” Earlier, it was defined as living on less than Rs 184 per day (about $2.15). Now, the new threshold is Rs 257 per day (about $3), adjusted to reflect inflation and rising living costs between 2017 and 2021.
Despite the poverty line being raised, India has shown major improvement. In 2011-12, 34 crore (340 million) people were below the poverty line. In 2022-23, that number dropped to 7.5 crore (75 million) — showing that India lifted around 171 million people out of extreme poverty in just 10 years.
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While the higher global poverty line increased the total number of people living in extreme poverty around the world, India’s improved data helped lower the global count by 125 million. This makes India a positive exception, according to the World Bank.
As of 2024, around 5.44% of India’s population — about 5.46 crore people — live on less than Rs 257 per day.
Other key points from the World Bank report:
- Extreme poverty in India fell from 16.2% to 2.3% (based on the older poverty line of Rs 184) between 2011-12 and 2022-23.
- The poverty gap between cities and villages also reduced.
- In rural areas: Poverty fell from 18.4% to 2.8%
- In urban areas: Poverty fell from 10.7% to 1.1%
- Government schemes like free and subsidized food helped reduce poverty.
- 5 of the most populous states still account for over half of the extremely poor in the country.
India’s Economic Outlook
- India’s real GDP is currently about 5% below what it would have been without the COVID-19 pandemic.
- Growth is expected to return to normal levels by 2027-28, provided global issues are managed well.
- However, global uncertainties and trade tensions could slow down recovery.
- India’s current account deficit (the difference between exports and imports) is expected to stay around 1.2% of GDP until 2028.
- Foreign exchange reserves (money held by the government to manage the economy) are expected to stay strong at 16% of GDP.
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Conclusion
India has made great progress in fighting poverty. With better policies and strong support systems, the country managed to lift millions out of poverty — even when the poverty line was raised. The World Bank’s report highlights India as a success story in global poverty reduction.
