India lifts 171 million from extreme poverty: what drives this decade-long surge?

India has achieved a remarkable reduction in extreme poverty, lifting 171 million people out of poverty between 2011-12 and 2022-23, according to the World Bank.

The extreme poverty rate fell from 27.1% in 2011-12 to 5.3% in 2022-23, marking a significant socio-economic transformation.

This progress is notable even as the World Bank revised the poverty threshold upwards to Rs 257 ($3) per day, reflecting inflation and cost of living adjustments. Previously, the threshold was Rs 184 ($2.15) per day in 2021 prices.

The inflation adjustment means the poverty line is now about 15% higher than before, making the reduction in poverty even more impressive.

The decline in extreme poverty is also reflected in the drop of those living on less than USD 2.15 per day from 16.2% in 2011-12 to 2.3% in 2022-23.

This decade-long surge in poverty reduction highlights India's economic growth, social welfare programs, and policy focus on inclusive development.

"India's extreme poverty rate declined sharply to 5.3 per cent over a decade from 27.1 per cent in 2011-12," the World Bank noted.

The data underscores the importance of adjusting poverty lines to reflect inflation, ensuring accurate measurement of progress.

Overall, India's success in lifting millions out of extreme poverty is a significant milestone in global poverty alleviation efforts.

India has lifted 171 million people out of extreme poverty over the past decade, reducing the rate from 27.1% in 2011-12 to 5.3% in 2022-23, despite the World Bank raising the poverty threshold to Rs 257 ($3) per day amid inflation adjustments.