SUMMARY

The article from The Economic Times, published on June 8, 2025, titled "270 million Indians out of extreme poverty list: World Bank," reports a significant decline in India’s extreme poverty rate based on updated World Bank data.

Key points 

1. Poverty Reduction: India’s extreme poverty rate dropped from 27.1% in 2011-12 to 5.3% in 2022-23, lifting approximately 269 million people (from 344.47 million to 75.24 million) out of extreme poverty over this period.
2. Updated Poverty Line: The World Bank raised the international poverty line for low-income countries from $2.15 to $3 per day, and for lower-middle-income countries like India from $3.65 to $4.20 per day. Using the $3 threshold, the 5.3% poverty rate was calculated, while the $4.20 line yields a 23.9% poverty rate in 2022-23, down from 57.7% in 2011-12.
3. Data Source: The data is based on India’s Household Consumption Expenditure Survey (HCES) for 2022-23, with the World Bank adopting the government’s survey over previous private surveys.
4. Contributing Factors: The decline is attributed to updated poverty line definitions, improved household survey data, and government policies like welfare schemes, direct benefit transfers (DBTs), and food security programs. Posts on X also highlight “Modinomics” policies, such as increased foreign direct investment and infrastructure projects, though these claims require further scrutiny.
5. Regional Impact: Five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—accounted for two-thirds of the poverty reduction.
6. Employment Trends: Rising employment, particularly among women, and a shift of male workers from rural to urban areas contributed to the decline, with urban unemployment dropping to 6.6% in Q1 FY24/25, the lowest since 2017-18.

The article emphasizes India’s progress in poverty alleviation but notes debates about the methodology, with some questioning the credibility of low poverty lines yielding low poverty rates.

CLICK HERE FOR FULL NEWS

FOR RELATED VIDEOS CLICK HERE