India has achieved a remarkable reduction in extreme poverty over the past eleven years, with the World Bank reporting a drop from 27.1% in 2011-12 to 5.3% in 2022-23, marking one of the largest poverty alleviation efforts globally in recent decades. According to the latest statistics, a staggering 269 million people have been lifted out of extreme poverty in this period.

Using the international poverty line of $3.00 per day (2021 prices), the number of people living in extreme poverty fell sharply from 344.47 million to 75.24 million. This dramatic decline is attributed to a blend of targeted welfare policies, digital empowerment, infrastructure development, and economic reforms, especially those introduced during Prime Minister Narendra Modi's tenure.

Widespread Impact Across States

The poverty reduction was not just isolated to specific regions but was witnessed across rural and urban India. However, five key states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—accounted for 65% of the country's extremely poor population in 2011-12. Impressively, these same states also contributed to nearly two-thirds of the national poverty reduction by 2022-23, showing targeted interventions where they were needed the most.

Rural and Urban Poverty: Significant Decline

The rural sector, traditionally plagued by poverty, saw a massive improvement:

• Rural extreme poverty dropped from 18.4% to 2.8%, benefiting vast rural populations.

• Urban extreme poverty also fell significantly from 10.7% to 1.1%, indicating balanced and inclusive growth across both demographics.

In absolute terms, under the $2.15/day (2017 prices) threshold (an older benchmark), India’s poverty rate declined from 16.2% to 2.3%, with the population below this line falling from 205.93 million to just 33.66 million.

Multidimensional Poverty Also Falls

India’s strides aren’t just limited to income metrics. The Multidimensional Poverty Index (MPI), which considers deprivations across health, education, and standard of living, paints an equally optimistic picture.

• MPI fell from 53.8% in 2005-06 to 16.4% in 2019-21,

• And further to 15.5% in 2022-23,
  demonstrating continued improvement in access to basic services and quality of life.

Key Welfare Schemes Driving Change

Much of this progress is attributed to flagship welfare initiatives spearheaded by the Modi government. Some of the most impactful include:

1. PM Awas Yojana (Housing for All) – Enabled millions of poor families to secure safe and permanent housing.

2. PM Ujjwala Yojana – Distributed clean cooking fuel (LPG) to women in rural areas, enhancing health and reducing drudgery.

3. Jan Dhan Yojana – Opened over 500 million zero-balance bank accounts, promoting financial inclusion and a digital economy.

4. Ayushman Bharat – The world’s largest health insurance program, providing free treatment up to ₹5 lakh for the poor.

5. Direct Benefit Transfers (DBT) – Ensured real-time delivery of welfare benefits, cutting out middlemen and leakages.

These initiatives were bolstered by enhanced digital connectivity, transparent governance, and targeted infrastructure development, particularly in underserved and rural areas.

Economic and Policy Backing

Beyond welfare schemes, India’s poverty reduction success is also underpinned by:

• Sustained GDP growth averaging over 6.5% per year since 2014.

• Expansion of rural infrastructure like roads, electricity, and piped water.

• Focus on women’s empowerment, through financial literacy, self-help groups, and maternity benefits.

• Skill development and employment-generation schemes targeting youth and informal workers.

India’s digital infrastructure revolution—particularly Aadhaar, mobile penetration, and banking integration—has created a robust ecosystem for efficient service delivery.

Global Praise and Outlook

The World Bank’s assessment highlights India’s role as a global leader in poverty eradication, with one of the fastest poverty reduction rates in the developing world. The country’s experience offers a model for scalable, data-driven welfare policies, and demonstrates how demographic challenges can be converted into opportunities through innovation and political will.

Challenges Ahead

Despite the remarkable progress, 75.24 million people still live in extreme poverty, and income inequality remains a concern. There is a need to:

• Deepen social security for informal sector workers.

• Address regional disparities, particularly in some backward districts.

• Strengthen education and healthcare systems, ensuring sustained long-term impact.

• Expand job creation, especially for the rural youth and urban poor.

Conclusion

India’s journey from 344 million extremely poor in 2011-12 to 75 million in 2022-23 is a transformative achievement, made possible by a mix of visionary policies, targeted welfare, and inclusive economic growth. As the nation celebrates this milestone, it also sets the stage for eliminating extreme poverty altogether in the coming years. The progress reflects not just statistical improvement, but a genuine enhancement in the dignity, opportunity, and quality of life for millions of Indians.

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