India Achieves Historic Drop in Extreme Poverty: Down to 5.3% from 27.1%, Says World Bank

New Delhi, June 7, 2025 – In a remarkable economic milestone, India has slashed its extreme poverty rate from 27.1% in 2011-12 to just 5.3% in 2022-23, according to a recent World Bank report. This translates to nearly 269 million people lifted out of extreme poverty in a little over a decade—one of the most significant poverty reduction achievements in global development.

Extreme Poverty in India Drops Sharply Over the Decade

The World Bank defines extreme poverty as living on less than $1.90 per day (in purchasing power parity). India’s dramatic fall in this metric places it among the most successful countries in combating poverty, driven by robust economic growth, targeted welfare programs, and infrastructure investments in health, education, and rural development.

According to the World Bank, the absolute number of people living in extreme poverty in India has dropped from 344.47 million in 2011-12 to just 75.24 million in 2022-23.

"This is a historic turning point. India’s long-term investments in social safety nets and inclusive development are paying off,” said a World Bank spokesperson.

SBI Report Confirms Further Drop Below 5% in 2024

Supporting the World Bank’s findings, a report by the State Bank of India (SBI) revealed that India's poverty rate continued to decline into 2024, falling below the 5% threshold. Rural poverty was recorded at 4.86%, and urban poverty at 4.09%—a substantial reduction from 25.7% and 13.7%, respectively, in 2011-12.

Key States Driving the Change

Some of the country’s most populous and poverty-affected states have shown exceptional progress:

• Uttar Pradesh

• Bihar

• Madhya Pradesh

• Rajasthan

• Odisha

These states have implemented large-scale poverty alleviation programs including direct benefit transfers (DBT), employment guarantee schemes, and improved access to education and healthcare services.

Poverty Eradication: A Model for Developing Nations

India’s achievement comes at a time when many developing countries are struggling with poverty due to inflation, pandemic aftershocks, and geopolitical tensions. Experts believe India’s model of inclusive growth, supported by digital infrastructure and welfare reforms, could serve as a blueprint for others.

Challenges Ahead Despite Success

Despite the commendable progress, the World Bank warns of persistent inequalities, especially among marginalized communities including Scheduled Castes (SCs), Scheduled Tribes (STs), and religious minorities. Income disparity, job insecurity, and access to quality education continue to challenge the full realization of India’s poverty eradication goals.

India’s Global Contribution to Poverty Reduction

The report also highlighted India’s significant contribution to reducing global poverty. In 2011-12, India accounted for more than 25% of the world’s extreme poor. By 2022-23, that figure had fallen dramatically.

Conclusion

India’s journey from 27.1% to 5.3% in extreme poverty in just over a decade is a transformative story of resilience, policy innovation, and economic development. As the nation sets its sights on eradicating poverty entirely, the focus will now shift to inclusive growth, job creation, and bridging inequality gaps to ensure no one is left behind.