India’s Poverty Decline: World Bank Report Findings
Why in the news
A World Bank report documented large falls in extreme and multidimensional poverty in India, while flagging inequality and jobs challenges.
Key facts
| Measure | Earlier | Latest |
|---|---|---|
| Extreme poverty ($2.15/day), overall | 16% (2011-12) | 2.3% (2022-23) |
| Extreme poverty, rural | 18.4% | 2.8% |
| Extreme poverty, urban | 10.7% | 1.1% |
| Poverty at $3.65/day, overall | 61.8% | 28.1% |
| $3.65/day, rural | 69% | 32.5% |
| $3.65/day, urban | 43.5% | 17.2% |
- Rural-urban gap at $2.15 narrowed from 7.7 to 1.7 points; at $3.65 from 25 to 15 points.
- Non-monetary (MPI) poverty fell from 53.8% (2005-06) to 16.4% (2019-21) and 15.5% (2022-23).
- Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh had 54% of the extreme poor in 2022-23.
- Under revised lines: $3/day gives 5.3% and $4.20/day gives 23.9%.
Inequality and jobs
- Top 10% earned 13 times the bottom 10% in 2023-24.
- Consumption Gini improved from 28.8 to 25.5, but income Gini rose from 52 (2004) to 62 (2023).
- Youth unemployment is 13.3%, and 29% among graduates.
- Only 23% of non-farm paid jobs are formal; the female employment rate is 31%.
Concerns
- N C Saxena warned that survey method changes hurt comparability and called for independent sources such as the Census and NFHS.
Exam angle
- Global line: $2.15 per day; lower-middle-income line: $3.65.
- 378 million crossed the $3.65 line.