India’s Battle Against Poverty: 171 Million Lifted from Extreme Poverty in a Decade

In a remarkable display of progress, India has successfully lifted 171 million people from extreme poverty between 2011-12 and 2022-23. According to the World Bank’s Spring 2025 Poverty and Equity Brief, the proportion of people living on less than $2.15 a day fell dramatically from 16.2% to just 2.3% during this period. The reduction in poverty across both rural and urban areas reflects the success of government-led initiatives and economic reforms designed to empower the marginalized sections of society.

Why in the news?

• India has made remarkable progress in combating poverty, lifting 171 million people out of extreme poverty over the last decade, according to the World Bank’s Spring 2025 Poverty and Equity Brief. This achievement not only underscores India’s commitment to poverty reduction but also highlights the effectiveness of various government policies and welfare programs aimed at inclusive development.

Key Findings from the World Bank Report

Sharp Reduction in Extreme Poverty

• The percentage of people living in extreme poverty (defined as living on less than $2.15 per day) dropped from 16.2% in 2011-12 to 2.3% in 2022-23.
• This sharp decline has resulted in 171 million people being lifted from extreme poverty over the past decade.

Rural and Urban Areas

• Rural Areas: Extreme poverty fell from 18.4% in 2011-12 to 2.8% in 2022-23.
• Urban Areas: Extreme poverty reduced from 10.7% to 1.1% during the same period.
• The gap between rural and urban poverty has narrowed from 7.7 percentage points to 1.7 percentage points.

Poverty at Lower-Middle-Income Level

• The poverty rate at the $3.65 per day level (lower-middle-income) dropped from 61.8% in 2011-12 to 28.1% in 2022-23, lifting 378 million people out of poverty.
• Rural poverty at this level declined from 69% to 32.5%, while urban poverty fell from 43.5% to 17.2%.
• The gap between rural and urban poverty narrowed from 25 to 15 percentage points.

Key States Driving Poverty Reduction

Top States Contributing to Progress,

• The five most populous states — Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh — represented 65% of India’s extreme poor in 2011-12.
• These states contributed to two-thirds of the overall reduction in extreme poverty by 2022-23.

Reduction in Multidimensional Poverty

Multidimensional Poverty

• Non-monetary poverty, measured by the Multidimensional Poverty Index (MPI), dropped from 53.8% in 2005-06 to 16.4% by 2019-21.
• The World Bank’s MPI stood at 15.5% in 2022-23, reflecting ongoing improvements in key living conditions such as education, health, and living standards.

Revised Poverty Estimates

• Revised international poverty lines (based on 2021 Purchasing Power Parities) show India’s extreme poverty at 5.3% and lower-middle-income poverty at 23.9% for 2022-23.