India’s Extreme Poverty Falls to 5.3% in 2022-2023: World Bank

India Lifts 269 Million Out of Extreme Poverty: World Bank Data Shows Major Progress

India has recorded a major decline in extreme poverty, with 269 million people moving out of it between 2011-12 and 2022-23, according to the latest data from the World Bank. The report highlights that the extreme poverty rate in India fell from 27.1% in 2011-12 to just 5.3% in 2022-23, marking a significant milestone in the country’s development journey.

In 2011-12, approximately 344.47 million Indians were living in extreme poverty. By 2022-23, that number had dropped dramatically to 75.24 million. A significant portion of this progress came from five key states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—which together accounted for 65% of the extreme poor in 2011-12. These states alone contributed to two-thirds of the total poverty reduction over the past decade.

Using the older $2.15 per-day poverty line (based on 2017 prices), the poverty rate in India decreased from 16.2% in 2011 to 2.3% in 2022. In terms of population, this reflects a drop from 205.93 million to 33.66 million people living in extreme poverty. The World Bank’s current definition of extreme poverty is based on living on less than $3.00 per day, adjusted to 2021 prices.

The decline in poverty was widespread across both rural and urban areas:

• Rural poverty fell from 18.4% to 2.8%

• Urban poverty dropped from 10.7% to 1.1%

These figures reflect the broad-based nature of India’s poverty reduction, reaching both urban centers and rural communities alike.

India has also achieved substantial progress in reducing multidimensional poverty, which accounts for deprivations in health, education, and standard of living. According to the Multidimensional Poverty Index (MPI):

• Poverty fell from 53.8% in 2005-06 to 16.4% in 2019-21

• It further declined to 15.5% in 2022-23

This multi-faceted progress underscores improvements not just in income but in quality of life and access to basic services.

As the BJP-led NDA government marks 11 years in office, Prime Minister Narendra Modi highlighted several flagship schemes that have contributed to this poverty reduction:

• PM Awas Yojana (affordable housing)

• PM Ujjwala Yojana (clean cooking fuel)

• Jan Dhan Yojana (financial inclusion)

• Ayushman Bharat (healthcare access)

These programs have expanded access to essential services, especially among marginalized populations. Alongside these, Direct Benefit Transfers (DBTs), digital inclusion, and rural infrastructure improvements have played a pivotal role in ensuring efficient and transparent delivery of welfare. Collectively, these measures have empowered over 250 million people to rise out of poverty.