NEW DELHI (Diya TV) — India has made dramatic gains in poverty reduction over the past decade, with the proportion of its population living in extreme poverty falling to 5.3% in 2022-23 from 27.1% in 2011-12, according to newly released data from the World Bank.
This sharp decline translates to 269 million Indians rising above the extreme poverty line in just over a decade. In absolute terms, the number of people living on less than $3 per day (adjusted to 2021 prices) dropped from 344.47 million in 2011-12 to 75.24 million in 2022-23.
The World Bank’s latest poverty update, which uses the updated international poverty threshold of $3.00 per day, highlights widespread gains across both rural and urban India. At the earlier $2.15 per day line (2017 prices), the share of people in extreme poverty fell from 16.2% to just 2.3%, or from 205.93 million individuals to 33.66 million over the same period.
The progress was particularly concentrated in five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—which together accounted for nearly 65% of India’s extreme poor in 2011-12. By 2022-23, these states were responsible for two-thirds of the national decline in extreme poverty.
The World Bank attributed the gains to sustained economic growth, targeted welfare programs, and improved access to basic services. The data also showed that rural extreme poverty plummeted from 18.4% to 2.8%, while urban poverty dropped from 10.7% to 1.1% during the 11 years.
India’s progress extends beyond income-based metrics. According to the United Nations Development Programme’s Multidimensional Poverty Index (MPI), which evaluates poverty through indicators such as education, health, and living standards, India’s MPI dropped from 53.8% in 2005-06 to 15.5% by 2022-23.
In a statement marking 11 years of the BJP-led NDA government, Prime Minister Narendra Modi highlighted initiatives such as the PM Awas Yojana (housing), PM Ujjwala Yojana (clean cooking fuel), Jan Dhan Yojana (financial inclusion), and Ayushman Bharat (healthcare access) as key drivers of poverty reduction. Additionally, the rollout of Direct Benefit Transfer (DBT) systems and a push for digital and rural infrastructure have improved service delivery and reduced leakages.
“These numbers reflect the impact of inclusive governance and robust welfare schemes that focus on empowering every citizen,” Modi said in a recent address.
The World Bank’s report also includes updated estimates using the $4.20 per day threshold for lower-middle-income countries, adjusted from $3.65 (based on 2017 prices). Under this expanded measure, the share of India’s population living below the poverty line fell from 57.7% in 2011-12 to 23.9% in 2022-23. In real terms, that means the number of people under this line fell from 732.48 million to 342.32 million.
The poverty reduction in India comes against the backdrop of a global revision in poverty estimates. Using the new poverty thresholds and 2021 Purchasing Power Parities (PPPs), the World Bank adjusted the global extreme poverty rate for 2022 from 9% to 10.5%, increasing the estimated number of people living in extreme poverty from 713 million to 838 million.
Despite that global setback, India’s performance remains a rare bright spot. “India has achieved a broad-based reduction in extreme poverty that cuts across rural and urban areas, indicating progress in both equity and access,” the World Bank said.
