New Delhi — India has achieved the fastest poverty reduction rate of any large country in modern history, with more than 269 million people escaping extreme poverty between 2011-12 and 2022-23, according to an India Narrative report. The progress is credited to sustained economic growth, strong welfare programs, and effective use of technology.
During this period, India’s extreme poverty rate dropped from 27.1% to just 5.3%. Projections suggest it could fall further to 4–4.5% by 2025, putting the country close to eradicating extreme poverty.
The rural turnaround has been particularly notable — poverty there fell from 18.4% to 2.8%, driven by agricultural reforms and rural welfare schemes. Urban poverty also saw a sharp drop, from 10.7% to 1.1%, aided by job creation and better-targeted social protection programs.
Four states — Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan — accounted for nearly two-thirds of the total poverty reduction. Uttar Pradesh alone lifted about 60 million people out of poverty, showing the impact of targeted interventions in historically poorer regions.
While income-based poverty is a key metric, India’s Multidimensional Poverty Index (MPI) also measures deprivation in areas like health, education, and living standards, offering a broader view of progress.
India’s consistent GDP growth, averaging over 7% annually for the past 15 years, has created jobs, raised wages, and expanded the tax base to support welfare schemes. This combination of market-driven growth and government-led safety nets has powered poverty reduction.
Urbanisation, migrant worker remittances, and rising agricultural productivity have also strengthened incomes and resilience, especially in rural areas.
India is on track to meet the UN Sustainable Development Goal of halving multidimensional poverty well before the 2030 deadline. The UNDP and World Bank have praised India’s approach for being scalable and cost-effective. Globally, India’s poverty decline over the past decade is among the largest absolute reductions ever recorded.
With inputs from IANS