Poverty Reduction in India
India successfully reduced poverty, lifting 170 million individuals out of extreme poverty from 2011-12 to 2022-23, according to a World Bank report.
Key Statistics
- The proportion of people living on less than $2.15 a day declined to 2.3% in 2022-23 from 16.2% in 2011-12.
- Rural poverty rates decreased significantly to 2.8% from 18.4%, while urban rates fell to 1.1% from 10.7% over the same period.
Regional Insights
- Five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—were crucial in poverty reduction, accounting for a significant portion of the decline.
- These states accounted for 65% of India's extreme poor in 2011-12 but reduced this to 54% by 2022-23.
Data and Methodology
- The estimates are based on the 2011-12 Consumption Expenditure Survey and the 2022-23 Household Consumption Expenditure Survey.
- Changes in survey design and implementation pose challenges for long-term comparisons, as noted by the World Bank.
Inequality Measures
- India’s Gini Index improved, decreasing to 25.5 in 2022-23 from 28.8 in 2011-12.
- However, the World Inequality Database reports that income inequality increased, with their index rising to 62 in 2023 from 52 in 2004.
Economic and Employment Trends
- Employment growth has outpaced the working-age population since 2021-22.
- There is a workforce shift: more male workers are moving to urban areas, while female employment in rural agriculture is increasing.
- The wage disparity remains high, with top earners making 13 times more than the bottom earners in 2023-24.
