New Delhi, June 8, 2025 — In a significant economic milestone, the World Bank has revealed that India's extreme poverty rate has fallen sharply, dropping from 27.1% in 2011–12 to just 5.3% in 2022–23, despite a higher international poverty benchmark .
🏘️ The Numbers
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The population living in extreme poverty fell from approximately 344.47 million to 75.24 million, indicating that around 269 million people were lifted out of dire deprivation (ndtv.com).
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The decline is evident in both rural areas (from 18.4% to 2.8%) and urban regions (from 10.7% to 1.1%) (ndtv.com).
🔍 Methodological Change, Real Progress
In June 2025, the World Bank updated its international poverty line from $2.15 to $3.00 per day (2021 PPP), tightening the threshold for “extreme poverty.” Despite this, India’s decline in poverty persisted—a sign of sustained progress, not statistical anomaly (ndtv.com).
Government sources credited enhanced data collection and refined consumption surveys for providing a more precise picture of poverty levels (ndtv.com).
🚩 Regional Drivers
States like Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra, and West Bengal, which comprised the bulk of India’s poor, witnessed the most significant reductions, contributing to two-thirds of the overall poverty decline (ndtv.com).
📌 Policy Interventions Fueling Change
Analysts point to a host of government schemes and welfare programs that have helped alleviate poverty, including:
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Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) food assistance (en.wikipedia.org)
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Rural electrification and infrastructure improvements
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Financial inclusion initiatives like Jan Dhan, Mudra loans, LPG connections through Ujjwala, and affordable housing schemes
These efforts, along with private-sector growth and job creation, have played a role in lifting millions out of poverty.
📉 Beyond the Numbers
The decline in extreme poverty also translates into better living conditions: improved access to food security, education, healthcare, housing, and energy. Narrowing rural-urban gaps and rising incomes have further contributed to overall socioeconomic upliftment (documents1.worldbank.org).
Disclaimer: This article is based on the World Bank’s latest poverty estimates and corroborating media reports. Poverty statistics may be refined as new data emerges; readers should consult the World Bank’s official releases and reputable economic analyses for the most current insights.
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