In a decade-long journey marked by sweeping social and economic reforms, India has achieved a historic milestone—pulling 269 million people out of extreme poverty, according to the World Bank’s latest global poverty assessment. The proportion of Indians living in extreme poverty plummeted from 27.1% in 2011-12 to just 5.3% in 2022-23, signaling a powerful transformation in the lives of millions.
The findings, based on newly adjusted global poverty benchmarks, reveal that the number of Indians surviving on less than $3 per day (in 2021 PPP terms) dropped from 344.47 million to 75.24 million—a staggering decline that underscores the momentum of India’s development model.
India Defies Global Trend with Consistent Progress
While much of the developing world grappled with rising poverty in the aftermath of COVID-19 and inflationary shocks, India emerged as a remarkable exception. Globally, the World Bank revised the extreme poverty rate upward from 9% to 10.5%, with 838 million people now estimated to live under the revised threshold. India, however, not only held its ground but made massive strides forward, even under stricter measurement standards.
“This is not just a statistical victory—it’s a story of human upliftment on an unprecedented scale,” said Dr Raghav Menon, a senior development economist at the International Policy Centre. “India’s sustained reduction in poverty, despite rising global pressures, deserves close attention from policymakers worldwide.”
Five States Drive Majority of Poverty Reduction
The lion’s share of India’s poverty decline came from five of its most populous states: Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh. These states, once accounting for 65% of India’s poorest, were responsible for nearly two-thirds of the reduction in extreme poverty.
Experts credit a mix of rural development initiatives, digital inclusion, better delivery of welfare schemes, and robust food security networks. Schemes like PM Awas Yojana (housing), Jan Dhan Yojana (banking inclusion), and rural electrification have contributed significantly to improving consumption at the grassroots level.
New Poverty Benchmarks: India Still Shines
The World Bank’s assessment used updated 2021 Purchasing Power Parity (PPP) calculations, raising the international poverty line from $2.15/day to $3/day. Even under this tougher metric, India’s poverty numbers remained robust.
Under the previous benchmark, the poverty rate in India fell from 16.2% to 2.3%, a drop from 205.93 million to 33.66 million people—meaning 172 million Indians crossed that threshold too.
Meanwhile, for the Lower-Middle-Income Country (LMIC) benchmark (now $4.20/day), India’s poverty rate dropped from 57.7% in 2011-12 to 23.9% in 2022-23. That reflects a movement of over 390 million Indians out of vulnerable income levels and toward greater economic security.
A Nation on the Brink of a New Economic Identity
The World Bank’s report also highlights India’s potential to become the fourth-largest global economy in the coming years. As incomes rise and poverty retreats, India’s expanding consumer base and workforce could help anchor global economic growth.
Yet, experts urge caution. “India must remain vigilant about inequality, especially between urban and rural areas,” said Dr Menon. “Growth must be inclusive to ensure that no one is left behind.”
Challenges Remain: The Road Ahead
Despite this positive trajectory, challenges persist. Many Indians still face informal employment, regional disparities, climate vulnerability, and limited access to quality education and healthcare—all of which could limit future gains if left unaddressed.
The World Bank has called on India to continue investing in:
- Education and skilling
- Affordable and quality healthcare
- Climate-resilient infrastructure
- Financial inclusion in rural and semi-urban regions
“India’s story proves that progress is possible at scale,” the report concludes. “But the next chapter depends on sustained, inclusive, and climate-resilient policies.”
A Decade of Hope, A Future of Promise
India’s success in lifting nearly 270 million people out of extreme poverty isn’t just a headline—it’s a profound transformation that reshapes the social and economic landscape of the world’s most populous nation.
As India sets its sights on future milestones, the world watches a rising economic force that has not only survived turbulent global tides but redefined what determined, democratic development can achieve.
