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India Poverty Decline: World Bank Lines and Data Gaps

10 June 20251 min read
ECONOMYIndia PovertyDecline: WorldBank Lines andData Gaps10 June 2025safalsetu.com

Why in the news

India cut absolute poverty sharply, yet missing fresh official estimates hamper measurement and targeting.

Key facts

World Bank line2011-122023-24
$3 a day (was $2.15)27.1%5.3%
$4.20 a day (was $3.65)57.7%23.9%
  • Drivers: sustained growth, targeted welfare programmes and reform consensus.

Concerns

  • Rural poverty remains higher; price differences may exaggerate it.
  • Pandemic showed escapees stay vulnerable to shocks.
  • The last mile of poverty removal is hardest.

Way forward

  • Avoid triumphalism; use accurate data.
  • Revise the poverty line using domestic estimates.
  • Check how free food provision fits the numbers.

Exam angle

  • Thresholds: $3.00 and $4.20.

Test yourself

1. Under the World Bank's new $3 a day line, India's poverty rate in 2023-24 was about:

It fell from 27.1% in 2011-12 to 5.3% in 2023-24.

2. The World Bank's revised line for lower middle-income countries like India is:

The line moved from $3.65 to $4.20 a day.

3. Which gap does the poverty news highlight as hindering accurate policy targeting in India?

The last official estimate is nearly a decade old.