World Bank: India Lifts 269 Million from Extreme Poverty in 11 Years

7 June, 2025

According to latest World Bank data, India has significantly reduced its extreme poverty rate from 27.1% in 2011-12 to 5.3% in 2022-23, lifting approximately 269 million people out of extreme poverty. The number of individuals in extreme poverty dropped from 344.47 million to 75.24 million. This decline was observed across rural and urban areas, with states like Uttar Pradesh, Maharashtra, and Bihar contributing significantly to this achievement.

Unpacked:

What factors contributed to India's significant reduction in extreme poverty?

Economic growth, targeted welfare programs, digitisation, and initiatives aimed at marginalized groups played key roles in reducing poverty. Programs like direct benefit transfers, food security schemes, and skill development have helped uplift millions, especially among marginalized communities based on religion, tribe, and caste.

Are there any ongoing challenges to further reducing poverty in India?

Despite progress, India faces challenges like regional, gender, and caste disparities, unemployment, underemployment, skill mismatches, and persistent inequalities in access to education and health. Sustaining progress requires addressing these structural and systemic issues.

Why do some sources question the accuracy of the World Bank's poverty estimates for India?

Some analysts argue that the World Bank’s methodology and data sources might underestimate poverty, suggesting that actual rates could be higher. Concerns include the poverty line threshold, survey techniques, and discrepancies between national and international definitions of poverty.

How does poverty reduction differ between rural and urban areas in India?

Both rural and urban areas saw declines in extreme poverty, but challenges differ. Rural areas often face higher poverty rates due to limited job opportunities and infrastructure, while urban poor struggle with housing, informal employment, and access to services. Addressing both contexts requires tailored strategies.