270 million Indians out of extreme poverty list: World Bank
India has made remarkable progress in reducing extreme poverty. World Bank data shows nearly 270 million people moved out of extreme poverty between 2011-12 and 2022-23. The poverty rate fell significantly, even with a raised global poverty threshold. This achievement highlights India's commitment to evidence-based governance and sustained reforms. Spending inequality has also narrowed across the country.
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New Delhi: Nearly 270 million people moved out of extreme poverty in India between 2022- 23 and 2011-12, when their number shrank to 5.3% of the population from 27.1%, according to latest data released by the World Bank.India's achievement comes even as the multilateral lender raised the global threshold to measure extreme poverty to $3 per person per day from $2.15 and incorporated the 2021 purchasing power parity (PPP) for the calculation.'While the change (in threshold) led to a global increase in the count of extreme poverty by 125 million, India emerged as a statistical outlier in a positive direction,' the government said in a statement Saturday.In absolute numbers, the population living in extreme poverty in India fell to 75.2 million in 2022-23 from 344.5 million 11 years earlier.'In the face of a raised poverty benchmark, India showed that more honest data, not diluted standards, can reveal real progress,' the government said.India transitioned to a Modified Mixed Recall Period method from the Uniform Reference Period in its Household Consumption Expenditure Survey (HCES), a change that resulted in higher measured consumption and subsequently lower poverty estimates.Globally, the revised poverty line would have added 226 million people to the count of extremely poor.However, India's methodology revision partially offset the increase.The World Bank raised the global extreme poverty rate for 2022 to 10.5% from the earlier estimate of 9%, increasing the number of people living below the poverty line, increasing the number of people living below the poverty line to 838 million from 713 million.'Given India's share of the global population, its methodological changes matter for the global poverty trends,' the World Bank noted. Using the previous $2.15 (2017 PPP) poverty line, the World Bank reported a 1.3-percentage-point drop in global extreme poverty to 7.7% in 2022, largely due to 125 million fewer extreme poor people in India.Based on this earlier benchmark, the share of Indians living below the poverty line fell to 2.4% in 2022- 23 from 16.2% in 2011-12, according to the data from the World Bank.'As the global community recalibrates poverty goals, India's example sets a precedent: evidencebased governance, sustained reforms, and methodological integrity can together deliver transformational outcomes,' said the government.Spending inequality narrowed across India, according to the HCES 2023-24. In rural areas, the average monthly per capita consumption expenditure increased
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Time of India
30 minutes ago
- Time of India
Despite World Bank raising threshold, India achieves big dip in extreme poverty
NEW DELHI: India's extreme poverty rate has fallen sharply over the past decade after the World Bank updated its international poverty line definition and included updated data in its June upgrade of the methodology. Based on the update, the latest World Bank data showed that the extreme poverty rate had declined from 27.1% in 2011-12 to 5.3% in 2022-23. The number of people living in extreme poverty also fell sharply during this period from 344.47 million in 2011-12 to 75.24 million in 2022-23. This would mean that nearly 270 million were lifted out of extreme poverty during the same period. In a blog, the World Bank said that the international poverty line for low-income countries has been raised to $3 per person per day from the existing $2.15 per person per day, and for lower middle-income countries it's changed from $3.65 to $4.20 per day and for upper middle-income countries it went up from $6.85 to $8.40. Given India's inflation rate, between 2017 and 2021, a revised extreme poverty line of $3 would constitute a 15% higher threshold than $2.15 expressed in 2021 prices and result in a 5.3% poverty rate in 2022-23. A new LMIC line of $4.20 would imply a 5% lower threshold for poverty than $3.65 adjusted in 2021 prices and yield a poverty rate of 23.9%, according to the World Bank. Using the new poverty line for low middle income countries (LMIC), which is at $4.20 per day per person, India's poverty rate fell to 23.9% in 2022-23 from 57.7% in 2011-12. The number of people in extreme poverty was down from 732.48 million in 2011-12 to 342.32 million in 2022-23, according to the data available on the World Bank's Poverty and Inequality Platform. Free and subsidised food transfers supported poverty reduction, and the rural-urban poverty gap narrowed. The five most populous states account for 54% of the extremely poor, it had said. According to the poverty and equity brief published by World Bank in April, extreme poverty (living on less than $2.15 per day) fell from 16.2% in 2011- 12 to 2.3% in 2022-23, lifting 171 million people above this line. Rural extreme poverty dropped from 18.4% to 2.8% , and urban from 10.7% to 1.1% , narrowing the rural-urban gap from 7.7 to 1.7 percentage points-a 16% annual decline. The poverty report had also said India has transitioned into the lower-middle-income category. Using the $3.65 per day LMIC poverty line, poverty fell from 61.8% to 28.1%, lifting 378 million people out of poverty. Rural poverty dropped from 69% to 32.5%, and urban poverty from 43.5% to 17.2%, reducing the rural-urban gap from 25 to 15 percentage points with a 7% annual decline, the April report had said. The updated World Bank data is expected to come as a shot in the arm for the govt and bolster its record of handling the economy and pursuing policies to push inclusive growth and lift millions out of poverty. Last year, Niti Aayog CEO BVR Subhramanyam had indicated that the poverty level could be less than 5% based on preliminary estimates on the household consumption expenditure (HCES) data released by the statistics office. World Bank has said that in recent years, the scope and quality of information provided by household surveys has improved enormously, particularly in low-income and lower-middle-income countries, offering a clearer view into people's welfare and day-to-day lives. Several research papers have also indicated the reduction in extreme poverty over the last decade thanks to robust growth. A survey released last year estimated poverty to have declined to 8.5% from 21% in 2011-12 and pointed out that chronic poverty has come down but there is a significant proportion of people who can slip back into poverty due to "accident of life". World Bank, which introduced the international poverty line (IPL) in 1990, has undertaken several updates to include changing prices and costs, and the latest update was undertaken on June 5. The first update to IPL happened in 2001, with subsequent revisions in 2008, 2015, 2022, and more recently this month. This latest update, which also applies to the poverty lines for middle-income countries, follows the release last year of a new set of PPPs based on prices collected in 2021 by the International Comparison Programme. It also reflects changes in national poverty lines, which is a big reason for the increase, especially for the line that tracks extreme poverty, according to the World Bank.
Time of India
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First Post
2 hours ago
- First Post
Extreme poverty dips in India from 27.1% to 5.3%, fall in absolute number 270 mn: World Bank
In a major milestone, India's extreme poverty rate dropped from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23, lifting 269 million people out of poverty, according to World Bank estimates. read more Extreme poverty dips in India from 27.1% to 5.3%, fall in absolute number 270 mn: World Bank. File image/ AP India's extreme poverty rate fell sharply from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23, according to new World Bank estimates. This means about 269 million people rose above the international poverty line over 11 years. The number of people living in extreme poverty dropped from 344.47 million to 75.24 million, based on the $3.00 per day poverty line (in 2021 PPP terms). Five states – Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh – had the highest number of poor in 2011-12, and together they contributed to nearly two-thirds of the poverty reduction by 2022-23. STORY CONTINUES BELOW THIS AD The World Bank reports that rural extreme poverty in India fell from 18.4 per cent to 2.8 per cent, while urban extreme poverty dropped from 10.7 per cent to 1.1 per cent over the same period. Using the earlier $2.15 per day poverty line (based on 2017 prices), the extreme poverty rate fell from 16.2 per cent in 2011-12 to 2.3 per cent in 2022. In absolute numbers, the population living below this line decreased from 205.93 million to 33.66 million. The World Bank data also showed progress in multidimensional poverty. The Multidimensional Poverty Index (MPI) was at 53.8 per cent in 2005-06. It fell to 16.4 per cent in 2019-21 and further to 15.5 per cent in 2022-23.
