India has recorded a remarkable decline in extreme poverty over the past decade, according to a new report from the World Bank, which points to expanded social welfare programs and sustained economic growth as key factors in the transformation.
The number of Indians living in extreme poverty fell from 344.47 million in 2011–12 to just 75.24 million in 2022–23, reducing the poverty rate from 27.1% to 5.3%. The drop is even more significant given the World Bank’s updated international poverty line, which was raised from $2.15 to $3.00 per day (at 2021 purchasing power parity).
“India’s progress over the last ten years stands out globally,” the report noted, calling the drop “one of the steepest declines in extreme poverty recorded among major economies.”
A Shift in the Poverty Landscape
The progress was not evenly distributed but saw the greatest gains in states with historically high poverty rates. Five states—Uttar Pradesh, Bihar, Maharashtra, Madhya Pradesh, and West Bengal—accounted for nearly two-thirds of the national decline in poverty. These five states were home to 65% of India’s extreme poor in 2011–12.
The report credits targeted government interventions for much of the progress. Flagship welfare programs such as the Pradhan Mantri Garib Kalyan Anna Yojana, which provided free or subsidized food to millions, are cited as instrumental in reducing food insecurity and narrowing the rural-urban poverty divide.
In rural areas, poverty dropped from 32.6% to 7.2%, while urban poverty declined from 14.6% to 3.8% during the same period. “The narrowing of the rural-urban gap in poverty incidence is among the most notable shifts,” the report adds.
Policy and Pandemic Resilience
Despite economic turbulence caused by the COVID-19 pandemic, India’s poverty alleviation momentum appears to have held. Social protection measures introduced during the pandemic helped absorb the shock for vulnerable populations, maintaining the overall trajectory of improvement.
The World Bank’s findings arrive at a critical juncture as India, the world’s most populous nation, increasingly positions itself as a global economic leader. Analysts say that the data not only reflects improved income distribution but also signals the long-term impact of inclusive policy design.
“India’s success in reducing poverty at this scale demonstrates the importance of sustained economic growth coupled with welfare mechanisms,” said a senior World Bank economist involved in the report.
Context & Significance
- Poverty rate fell from 27.1% to 5.3% between 2011–12 and 2022–23
- 269 million people moved out of extreme poverty
- Key contributors: food security schemes, state-level progress, inclusive policies
- Rural-urban poverty gap narrowed significantly
- Resilience maintained through COVID-era shocks