Paper: GS – III, Subject: Indian Economy, Topic: Poverty, Issue: India’s Poverty Estimate.
Context:
A Government of India press release (April 25, 2025) on India’s Poverty cited the World Bank’s “Poverty and Equity Brief”, noting that 171 million people were lifted out of extreme poverty over the past decade.
- In June 2025, the World Bank released an updated methodology, reporting that only 5.75% of Indians now live in abject poverty, compared to 27% in 2011-12.
Key Takeaways:
Revised Global Poverty Thresholds:
- In 2022-23, the World Bank raised the extreme poverty line from $2.15 per day to $3 per day (in 2021 PPP terms) to better reflect cost-of-living increases across developing nations.
- This adjustment shifts the global benchmark for poverty measurement, thereby increasing the comparability and relevance of data across time.
- At this $3/day level, the share of India’s population living in extreme poverty is estimated to be 5.3%, a steep fall from 27.1% in 2011-12.
- In absolute terms, the number of people living in extreme poverty has decreased from 344 million to just over 75 million in this period.
India’s Progress under Different Poverty Lines:
Conclusion:
- The World Bank’s data provides valuable insights into India’s poverty levels, but it’s essential to interpret the data with caution, Considering the methodology, context, and potential limitations.
- The absence of an updated domestic poverty line and variations in data collection methods contribute to the complexity of assessing poverty in India.
- A comprehensive understanding of these factors is crucial for policymakers and analysts to develop effective strategies for poverty reduction and economic development.
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2025 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040
