World Bank Reports Drop in Extreme Poverty in India to 5.3% for 2022-23
India’s Extreme Poverty Sees Significant Decline According to World Bank
Recent data from the World Bank indicates a remarkable drop in India’s extreme poverty rate, decreasing from 27.1% in 2011-12 to just 5.3% in 2022-23. This improvement has resulted in lifting approximately 269 million individuals out of poverty during this period. Despite a higher poverty line set at $3 per day, substantial progress has been made.
The rural population in India is also showing positive trends, with 54.56% falling within the top 60 percentile in 2022, while 45.44% remain in the bottom 40 percentile. The urban population reflects a similar trend, with 74.22% in the top 60 percentile and 25.78% in the bottom 40 percentile.
The World Bank’s revised poverty threshold of $3 per day has led to adjustments in poverty rates across the globe. While the global extreme poverty rate has increased to 10.5%, South Asia, including India, has seen a decline in poverty from 9.7% to 7.3%. These changes have resulted in positive outcomes for countries like Bangladesh and Sri Lanka as well.
India’s household consumption expenditure surveys (HCES) have shown a significant reduction in poverty levels. The impact of education on individual well-being has been highlighted, indicating the importance of investing in human capital for sustainable poverty alleviation. Additionally, initiatives to develop new indicators for measuring extreme poverty are underway, aiming to provide a more accurate representation of poverty levels in the country.
Given the recent economic challenges and high inflation rates, there remains a need to focus on boosting the purchasing power of vulnerable communities. Enhancing income-based poverty estimates and implementing targeted interventions can help address the remaining pockets of poverty in India.
