Why in the news
The World Bank reported a steep fall in India’s poverty between 2011-12 and 2022-23, even as global poverty reduction slows.
Key facts
| Measure | Earlier | 2022-23 |
|---|
| Extreme poverty ($2.15/day PPP) | 16% (2011-12) | 2.3% |
| LMIC line ($3.65/day) | 61.8% | 28.1% |
| Multidimensional Poverty Index | 53.8% (2005-06) | 15.5% |
- 171 million people crossed the extreme poverty line; about 378 million were lifted at the LMIC line.
- The MPI measure leaves out health and nutrition but captures gains in education, living standards and service access.
Rural and urban trends
| Line | Area | Fall |
|---|
| Extreme | Rural | 18.4% to 2.8% |
| Extreme | Urban | 10.7% to 1.1% |
| LMIC | Rural | 69% to 32.5% |
| LMIC | Urban | 43.5% to 17.2% |
- Rural-urban gap at the extreme line narrowed from 7.7 to 1.7 percentage points; at the LMIC line from 25 to 15 points.
Concerns
- Estimates use the 2011-12 Consumption Expenditure Survey and the 2022-23 Household CES; changes in questionnaire, sampling and method may affect comparability.
- N.C. Saxena, former Planning Commission Secretary, wants cross-checks with independent data such as the Census and NFHS.
- The new method may understate consumption inequality, affecting real poverty estimates.
Exam angle
- International extreme poverty line: $2.15 per day (PPP).
- LMIC line: $3.65 per day.
- Data sources: Consumption Expenditure Surveys.