New Delhi, Aug 12 India has recorded the fastest large-country poverty reductions in modern history, enabling more than 269 million people to escape extreme deprivation between 2011-12 and 2022-23 on the back of sustained economic growth, robust welfare systems, and the strategic use of technology, according to an India Narrative article.
India’s extreme poverty rate fell from 27.1 per cent to just 5.3 per cent during this period, and projections indicate that by 2025, the national extreme poverty rate could drop to 4-4.5 per cent, nearing complete eradication.
The rural transformation has been especially striking -- poverty fell from 18.4 per cent to 2.8 per cent -- reflecting both agricultural reforms and rural welfare schemes. Urban poverty declined from 10.7 per cent to 1.1 per cent, showcasing urban employment growth and better-targeted social protection.
Four states -- Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan -- accounted for nearly two-thirds of the national poverty decline. Uttar Pradesh alone lifted close to 60 million people out of poverty, underscoring the significance of targeted interventions in historically poorer regions.
While monetary poverty is a key measure, deprivation often extends to health, education, and living standards. India’s Multidimensional Poverty Index (MPI) captures this broader reality.
India’s sustained GDP growth -- averaging over 7 per cent annually for the past 15 years -- has been a foundational driver of poverty reduction. This growth has created jobs, raised wages, and expanded the tax base to fund welfare schemes. The combination of market-led opportunity and state-led safety nets has created a unique dual engine for poverty alleviation.
Urbanisation has also played a role, with expanding cities offering employment, infrastructure, and access to services. Remittances from migrant workers have boosted rural incomes, while agricultural productivity improvements have increased rural resilience.
India is on track to meet the Sustainable Development Goal (SDG) of halving multidimensional poverty well before the 2030 target. The UNDP and World Bank have recognised India’s model for its scalability and cost-effectiveness. In global terms, India’s poverty reduction over the past decade represents one of the largest absolute declines in poverty ever recorded, the article added.
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