{"id":49577,"date":"2025-06-07T17:56:29","date_gmt":"2025-06-07T12:26:29","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=49577"},"modified":"2025-06-30T12:04:57","modified_gmt":"2025-06-30T06:34:57","slug":"indias-extreme-poverty-falls-sharply-under-revised-world-bank-poverty-line","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-extreme-poverty-falls-sharply-under-revised-world-bank-poverty-line\/","title":{"rendered":"India\u2019s Extreme Poverty Falls Sharply Under Revised World Bank Poverty Line"},"content":{"rendered":"<h2>India\u2019s Poverty Rate Latest News<\/h2>\n<ul>\n<li>India\u2019s extreme poverty fell to 5.3% in 2022-23 from 27.1% in 2011-12, a much sharper decline than in previous decades, the World Bank said, releasing updated data..<\/li>\n<\/ul>\n<h2>Introduction<\/h2>\n<ul>\n<li>India has recorded a significant decline in extreme poverty over the past decade, according to the latest estimates by the\u00a0<a href=\"https:\/\/vajiramandravi.com\/upsc-daily-current-affairs\/prelims-pointers\/world-bank-group\/\" target=\"_blank\" rel=\"noopener\" target=\"_blank\">World Bank<\/a>\u00a0using an updated threshold of $3 per day in 2021 PPP terms.\u00a0<\/li>\n<li>The new estimates reflect India&#8217;s resilience and progress in reducing poverty, even after adjusting for inflation and other macroeconomic changes.<\/li>\n<\/ul>\n<h2>Revised Global Poverty Thresholds<\/h2>\n<ul>\n<li>In 2022-23, the World Bank raised the extreme poverty line from $2.15 per day to $3 per day (in 2021 PPP terms) to better reflect cost-of-living increases across developing nations.\u00a0<\/li>\n<li>This adjustment shifts the global benchmark for poverty measurement, thereby increasing the comparability and relevance of data across time.<\/li>\n<li>At this $3\/day level, the share of India\u2019s population living in extreme poverty is estimated to be\u00a0<strong>5.3%<\/strong>, a steep fall from\u00a0<strong>27.1% in 2011-12<\/strong>.\u00a0<\/li>\n<li>In absolute terms, the number of people living in extreme poverty has decreased from\u00a0<strong>344 million to just over 75 million<\/strong>\u00a0in this period.<\/li>\n<\/ul>\n<h2>India&#8217;s Progress under Different Poverty Lines<\/h2>\n<ul>\n<li><strong>At the $2.15\/day line<\/strong>\u00a0(previous international standard based on 2017 PPP), India&#8217;s extreme poverty rate stood at\u00a0<strong>2.3% in 2022<\/strong>, compared to\u00a0<strong>16.2% in 2011-12<\/strong>.<\/li>\n<li>Under the\u00a0<strong>lower-middle-income country (LMIC) poverty line<\/strong>, now revised to $4.20\/day (up from $3.65\/day), India&#8217;s poverty rate fell from\u00a0<strong>57.7% to 23.9%<\/strong>\u00a0in the same period.<\/li>\n<li>Interestingly, while the nominal poverty line has been raised, the new threshold of $4.20\/day is effectively lower for India compared to an inflation-adjusted $4.40\/day line, thus explaining the decline in poverty rate even under the revised standard.<\/li>\n<\/ul>\n<h2>Demographic and Educational Inequities in Poverty<\/h2>\n<ul>\n<li>The World Bank\u2019s data also highlight disparities based on geography and education:<\/li>\n<li><strong>Rural Poverty:<\/strong>\u00a0Dropped from\u00a0<strong>69% in 2011-12 to 32.5% in 2022-23<\/strong>\u00a0under the $3.65\/day line.<\/li>\n<li><strong>Urban Poverty:<\/strong>\u00a0Declined from\u00a0<strong>43.5% to 17.2%<\/strong>\u00a0in the same period.<\/li>\n<li><strong>Educational Disparities:<\/strong>\u00a035.1% of Indians aged 16+ with no formal schooling live below the poverty line, compared to just 14.9% among those with post-secondary education.<\/li>\n<\/ul>\n<h2>Multidimensional Poverty Indicators<\/h2>\n<ul>\n<li>Apart from income-based poverty, India has also seen improvement in\u00a0<strong>non-monetary dimensions<\/strong>\u00a0of deprivation:<\/li>\n<li><strong>World Bank\u2019s MPI:<\/strong>\u00a0India\u2019s non-monetary poverty fell from\u00a0<strong>53.8% in 2005-06 to 15.5% in 2022-23<\/strong>.<\/li>\n<li><strong>NITI Aayog Estimates:<\/strong>\u00a0Show a reduction in multidimensional poverty from\u00a0<strong>29.17% in 2013-14 to 11.28% in 2022-23<\/strong>.<\/li>\n<li>Indicators used include access to clean drinking water, electricity, sanitation, and educational enrolment.<\/li>\n<\/ul>\n<h2>Consumption Trends and Economic Implications<\/h2>\n<ul>\n<li>The decline in poverty is also supported by rising consumption levels:\n<ul>\n<li><strong>Rural Monthly Per Capita Expenditure (MPCE):<\/strong>\u00a0Increased from \u20b91,430 in 2011-12 to \u20b92,079 in 2023-24 (at 2011-12 prices).<\/li>\n<li><strong>Urban MPCE:<\/strong>\u00a0Rose from \u20b92,630 to \u20b93,632 during the same period, reflecting an overall improvement in living standards.<\/li>\n<\/ul>\n<\/li>\n<li>This consumption-driven growth supports the argument that India\u2019s poverty reduction has been broad-based and sustained, aligning with macroeconomic recovery and welfare reforms.<\/li>\n<\/ul>\n<h2>Conclusion<\/h2>\n<ul>\n<li>India\u2019s progress in reducing poverty, even under the revised and more rigorous international benchmarks, underscores its achievements in economic development, social welfare, and infrastructure delivery.\u00a0<\/li>\n<li>While challenges remain in addressing inter-group disparities and improving human capital, the data indicate a decisive shift toward a more inclusive growth model.\u00a0<\/li>\n<li>The full data for 2023-24 will be released in October 2025 under the World Bank&#8217;s Poverty and Inequality Platform (PIP), potentially offering more insights into India\u2019s poverty trajectory in the post-pandemic era.<\/li>\n<\/ul>\n<h2>India\u2019s Poverty Rate FAQs<\/h2>\n<p><strong>Q1.\u00a0<\/strong>What is India\u2019s extreme poverty rate at the $3\/day threshold in 2022-23?<\/p>\n<p><strong>Ans.<\/strong>\u00a0India\u2019s extreme poverty rate stood at 5.3% in 2022-23 under the World Bank\u2019s $3\/day poverty line.<\/p>\n<p><strong>Q2.\u00a0<\/strong>How many people in India were living in extreme poverty in 2022-23?<\/p>\n<p><strong>Ans.<\/strong>\u00a0Approximately 75.24 million people in India were living in extreme poverty in 2022-23.<\/p>\n<p><strong>Q3.\u00a0<\/strong>What is India\u2019s poverty rate under the revised LMIC line of $4.20\/day?<\/p>\n<p><strong>Ans.<\/strong>\u00a0The poverty rate under the $4.20\/day LMIC line fell to 23.9% in 2022-23.<\/p>\n<p><strong>Q4.\u00a0<\/strong>What is the trend in rural and urban poverty under the $3.65\/day line?<\/p>\n<p><strong>Ans.<\/strong>\u00a0Rural poverty fell from 69% to 32.5%, and urban poverty declined from 43.5% to 17.2% between 2011-12 and 2022-23.<\/p>\n<p><strong>Q5.\u00a0<\/strong>What does the Multidimensional Poverty Index (MPI) indicate for India?<\/p>\n<p><strong>Ans.<\/strong>\u00a0India\u2019s MPI-based non-monetary poverty fell from 53.8% in 2005-06 to 15.5% in 2022-23.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/world-bank-poverty-line-rate-falls-2022-23-10051890\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a>\u00a0|\u00a0<a href=\"https:\/\/www.financialexpress.com\/policy\/economy-extreme-poverty-in-india-down-to-5-3-in-2022-23-world-bank-3871313\/\" target=\"_blank\" rel=\"nofollow noopener\">FE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Extreme poverty in India fell to 5.3% in 2022-23 from 27.1% in 2011-12, under the \\$3\/day World Bank threshold, showing major gains in consumption and welfare.<\/p>\n","protected":false},"author":8,"featured_media":49582,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[752,60,22,59],"class_list":{"0":"post-49577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-indias-poverty-rate","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs-tag","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/49577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=49577"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/49577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/49582"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=49577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=49577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=49577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}