- India lifted 171 million people out of extreme poverty between 2011-12 and 2022-23.
- As per the World Bank’s Spring 2025 Poverty and Equity Brief, this marks a major success in poverty alleviation through targeted policies and inclusive growth.
World Bank’s Poverty and Equity Briefs (PEBs)
Purpose and Publication
- Track poverty, shared prosperity, and inequality trends in over 100 developing countries.
- Published twice a year — during the Spring and Annual Meetings of the World Bank Group & IMF.
- Aim: Keep poverty reduction a global priority through updated data and analysis.
Key Indicators and Measures
- Reports on poverty rates and total number of poor using:
- National poverty lines
- International poverty lines:
- $2.15/day → Extreme poverty
- $3.65/day → Lower-middle-income poverty
- $6.85/day → Upper-middle-income poverty
- Includes:
- Comparative trends across time and countries
- Multidimensional Poverty (education, health, basic services)
- Inequality indicators such as the Gini Index
Key Highlights of the Report
Sharp Decline in Extreme Poverty
- Extreme poverty (living on <$2.15/day) dropped from 2% (2011-12) to 2.3% (2022-23).
- 171 million people moved out of extreme poverty during this period.
Rural vs Urban Progress
- Rural poverty declined from 4% to 2.8%.
- Urban poverty fell from 7% to 1.1%.
- Rural-urban poverty gap reduced from 7 pp to 1.7 pp.
Poverty at Lower-Middle-Income Level ($3.65/day)
- Poverty fell from 8% to 28.1% (378 million lifted out).
- Rural: 69% → 32.5%
- Urban: 43.5% → 17.2%
- Rural-urban gap narrowed from 25 pp to 15 pp.
State-wise Contribution
- Uttar Pradesh, Maharashtra, Bihar, West Bengal, Madhya Pradesh:
- Accounted for 65% of India’s extreme poor in 2011-12.
- Drove two-thirds of the overall poverty reduction.
Reduction in Multidimensional Poverty
- MPI dropped from 8% (2005-06) to 16.4% (2019-21).
- Further reduced to 5% in 2022-23.
- Reflects improvements in education, health, and living standards.
Employment Trends
- Employment growth outpaced working-age population post 2021-22
- Female employment rising, especially in rural areas
- Urban unemployment dropped to 6% (Q1 FY24/25) – lowest since 2017-18
- Growth in self-employment, especially among rural women
Revised Estimates (2021 PPP)
- Extreme poverty (2022-23): 3% (vs 2.3% under old measure).
- Lower-middle-income poverty: 9%.
In conclusion, India has made remarkable progress in poverty reduction over the past decade. The Spring 2025 World Bank’s Poverty and Equity Brief highlights these achievements. It underscores the country’s commitment to inclusive development.
