Extreme poverty rate in India falls to 5.3%: World Bank data shows 269 million lifted out since 2011

The absolute number of Indians living in extreme poverty fell from 344.47 million in 2011-12 to 75.24 million in 2022-23. The World Bank defines extreme poverty based on the $3.00 per day international poverty line (in 2021 prices), providing a global benchmark to assess improvements in living standards.

Rural and Urban Poverty Both Decline Sharply

The World Bank data reveals that this reduction has been broad-based across both rural and urban regions. Rural poverty fell dramatically from 18.4% to 2.8%, while urban poverty saw a sharp drop from 10.7% to 1.1% over the same period.

At the older poverty benchmark of $2.15 per day (2017 prices), the data shows a plunge from 16.2% in 2011-12 to just 2.3% in 2022-23. The number of people living below this line dropped from 205.93 million to 33.66 million, further underlining India’s rapid strides in poverty alleviation.

Key States Driving the Decline

States like Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh — which accounted for 65% of India’s extreme poor in 2011-12 — were responsible for two-thirds of the overall poverty reduction.

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The shift underscores the success of targeted interventions and state-level initiatives aligned with national welfare goals.

India has also recorded substantial progress on the Multidimensional Poverty Index (MPI), which considers indicators like education, health, and living standards. The MPI dropped from 53.8% in 2005-06 to 16.4% in 2019-21, and further to 15.5% in 2022-23.

This improvement reflects better access to essential services and increased quality of life across the country, especially in rural areas.