The global narrative of poverty reduction has an Indian imprint in the latest data releases. The decline in poverty, confirmed by a confluence of national and international assessments, is a significant landmark on India’s developmental journey. Reduced poverty means more empowered citizens, a factor that reflects the dynamic interplay of sustained economic growth, year after year, focusing on meticulously targeted welfare architecture.
Even as global goals on poverty estimation shift—evidenced by the World Bank’s recent adoption of a stricter poverty threshold—India’s performance remains a hope—a journey of encouragement—on its path to become a developed country by 2047.
Data tells its story. According to a discussion paper from NITI Aayog, a staggering 24.82 crore people, a quarter of a billion souls, escaped the clutches of multidimensional poverty in the nine years between 2013-14 and 2022-23 alone. 29.17% of India was multidimensionally poor in 2013-14, which was reduced to 11.28% in 2022-23.
Measurement of multidimensional poverty based on the Multidimensional Poverty Index (MPI) is a more holistic metric developed by the UNDP and the University of Oxford in 2010. This index, as its name suggests, measures poverty across multiple, overlapping dimensions—health, education, and living standards—offering a granular, non-monetary picture of deprivation at the household level.
The largest declines in multidimensional poverty were registered in some of the nation’s most populous states, with Uttar Pradesh leading the charge by liberating 5.94 crore people, followed by Bihar (3.77 crore), Madhya Pradesh (2.30 crore), and Rajasthan (1.87 crore).
This exodus, on the path of empowerment, is corroborated by the World Bank’s “Spring 2025 Poverty and Equity Brief,” which notes the lifting of 17.1 crore people from extreme poverty in the country. Going by the old poverty rate of USD 2.15 per person per day, India’s population had 16.2% extremely poor people, living on less than USD 2.15 a day in 2011-12. It fell significantly to 2.3% in 2022-23.
The World Bank assessment notes that these populous states, which accounted for 65% of India’s extreme poor in 2011-12, were responsible for an astonishing two-thirds of the overall national poverty decline by 2022-23. The progress has permeated both rural and urban landscapes with equal force. Rural poverty saw a dramatic fall from 18.4% to just 2.8% between 2011-12 and 2022-23, while urban poverty in the same period dwindled from 10.7% to a mere 1.1%.
Consider the impact of the World Bank’s recalibrated international poverty line to USD 3 per person per day (in 2021 Purchasing Power Parity, released in May 2024) from USD 2.15. While this statistical adjustment instantly swelled the ranks of the world’s extreme poor, fresh household-consumption data from India reveals a story of remarkable resilience of the country. The recalibration should have added 22.6 crore people worldwide to its extreme-poverty count, but the real addition was just 12.5 crore, thanks to India’s positive indicators and reduced numbers.
Updated consumption data and changed survey methods to its poverty indicators and headcount ratio reflect that India is doing extremely well on meeting positive indicators to reduce poverty. According to the new international poverty line, the percentage of extremely poor people in India rose from 16.2% (or 20.59 crore people) in 2011-12 to 27.12% (or 34.47 crore people).
The latest data shows a significant decline in these numbers, corroborating India’s growth story. Under the new line—poverty fell drastically, from 27.12% in 2011-12 to 5.25% in 2022-23. In absolute terms, the headcount dropped from 34.45 crore to 7.52 crore over the same period—a striking decline that underscores India’s continuing progress—of addressing needs of the most vulnerable strata of the society.
Also, according to the NITI Aayog’s discussion paper, between 2005-06 and 2015-16, the annual rate of decline was 7.69%. However, in the subsequent period from 2015-16 to 2019-21, this rate surged to an impressive 10.66% annually. This acceleration puts India firmly on track to achieve the Sustainable Development Goal of halving multidimensional poverty well before the 2030 deadline.
Furthermore, as India navigates evolving global benchmarks, its progress holds firm. If we go by the previous poverty rates, at the lower-middle-income poverty line of USD 3.65 per day, the poverty rate was more than halved in the country, dropping from 61.8% to 28.1% over the decade from 2011-12 to 2022-23. This suggests that millions (37.8 crore people in absolute numbers) are not just crossing the threshold of extreme poverty but are continuing on an upward trajectory.
Perhaps most tellingly, this growth has not come at the expense of equality. The Gini Index, a standard measure of income and consumption-based inequality, actually declined from 28.8% in 2011-12 to 25.5% in 2022-23, indicating that the fruits of economic expansion are being distributed more broadly than before. India’s journey is a powerful demonstration that rapid, large-scale poverty reduction is an achievable reality, providing a solid foundation upon which the aspirations of a developed nation can be confidently built.
from National https://ift.tt/BclDTgv