Extreme poverty in India down to 5.3 pc in 2022-23: World Bank
India's extreme poverty rate declined sharply to 5.3 per cent over a decade from 27.1 per cent in 2011-12 even as the World Bank revised upwards its threshold poverty line to USD 3 per day.
Given India's inflation rate between 2017 and 2021, a revised extreme poverty line of USD 3 would constitute a 15 per cent higher threshold than USD 2.15 expressed in 2021 prices and result in a 5.3 per cent poverty rate in 2022-23, the World Bank said in a report.
In India, the report said, 54,695,832 people lived on less than USD 3 per day in 2024. Thus, the poverty rate at USD 3 per day (2021 PPP -- percentage population) is 5.44 per cent in 2024. The extreme poverty rate decreased from 16.2 to 2.3 per cent between 2011-12 and 2022-23, while the poverty rate at the lower middle income country (LMIC) line declined by 33.7 percentage points, it said. Free and subsidised food transfers supported poverty reduction, and the rural-urban poverty gap narrowed. The five most populous states account for 54 per cent of the extremely poor, it said.
With regard to economy, the report said, real GDP of India was around 5 per cent below the pre-pandemic trend level as of FY25. Growth should gradually converge back to potential over 2027-28 assuming the current global uncertainties are resolved in an orderly fashion, it said. "The outlook, however, is subject to significant downside risks, as policy shifts may continue to unfold globally. Elevated trade tensions would dampen demand for India's exports and further delay the recovery in investment," it said.
The current account deficit is expected to average around 1.2 per cent of GDP over FY26-28 and remain adequately financed by capital inflows, it said, adding that foreign exchange reserves are projected to remain stable around 16 per cent of GDP. India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23, the World Bank said. "Over the past decade, India has significantly reduced poverty. Extreme poverty (living on less than USD 2.15 per day) fell from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23, lifting 171 million people above this line, the World Bank had said in its 'Poverty & Equity Brief' on India in April.
The rural extreme poverty dropped from 18.4 per cent to 2.8 per cent, and urban from 10.7 per cent to 1.1 per cent, narrowing the rural-urban gap from 7.7 to 1.7 percentage points a 16 per cent annual decline, it had said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Gazette
3 hours ago
- India Gazette
India defies global poverty trends amid World Bank's revised estimates
New Delhi [India], June 7 (ANI): While the World Bank's revision to global poverty estimates led to a global increase in the count of extreme poverty by 125 million, India emerged as a statistical outlier in a positive direction, according to the government's factsheet analysis. The World Bank recently raised the International Poverty Line (IPL) from USD 2.15 to USD 3.00 per day (based on 2021 purchasing power parity). The revision was intended to reflect updated costs of living and more accurate consumption data. The global poverty measures produced by the World Bank use purchasing power parities (PPPs) to account for differences in price levels across the world. These PPPs are periodically revised in light of new data on relative living costs. This adjustment was expected to sharply increase the global count of those living in extreme poverty which was visible on poverty figures, estimated at 226 million people. However, India's newly revised poverty data significantly softened the blow, reducing the count by 125 million. These figures offsets more than half the global increase. India's standout performance is largely attributed to improvements in data collection and measurement methods. The country's latest Household Consumption Expenditure Survey (HCES) adopted the Modified Mixed Recall Period (MMRP) method, replacing the outdated Uniform Reference Period. This change provided a more accurate picture of household consumption, capturing actual spending more effectively. As a result, India's poverty rate in 2022-23 stood at just 5.25 per cent under the new USD 3.00 poverty line, and 2.35 per cent under the older USD 2.15 line -- a dramatic decline from earlier decades. The data also showed rising household spending: average monthly per capita expenditure rose to Rs 4,122 in rural areas and Rs 6,996 in urban areas, excluding the value of items received free through social welfare programs. Additionally, consumption inequality fell, with the Gini coefficient declining in both rural and urban regions. The government's factsheet detail added that India's example shows how methodological integrity, better data, and sustained policy efforts can work together to deliver real developmental outcomes. (ANI)
United News of India
3 hours ago
- United News of India
Bangladesh ex-PM Hasina slams CA Yunus for destroying country's economy
Dhaka, June 7 (UNI) Former Bangladesh Prime Minister Sheikh Hasina has slammed Chief Advisor Mohammed Yunus for his speech announcing April 2026 for the national polls, and asserted that he has destroyed the country's economy, caused massive social instability, and is destroying its very history and identity. Rejecting Yunus's claims that the country's economy was in shambles before he came to power in August last year, Hasina said: 'I saw his speech today. Yunus was trying to make excuses for his misdeeds.' 'His remarks do not match the reality. He claimed that the economy was shattered when he came to power. How is it possible? Rather, our economy was in the strongest position,' she added, reports Daily Republic. Highlighting the success of her tenure, and her efforts in uplifting the country's economy, she said 'He has destroyed the economy so much that he could not surpass my last budget worth Tk7,97,000 crore (USD 7.954 billion); rather, he reduced it. The budget does not go downwards. 'When I took office in 2009, Bangladesh's budget was only Tk68,000 crore (USD 5.576 billion), and it rose to Tk7,97,000 crore. In South Asia, Bangladesh's economy became the second, ninth in Asia, and 35th in the world,' the former PM added. She further stated that Bangladesh's GDP was growing by 8% prior to the COVID-19 pandemic, and despite the pandemic, the global crash of stocks, and the further deterioration caused by the Russia-Ukraine war, she was able to keep the economic growth at 6.7%. 'The Awami League increased per capita income to $2,794 from $445 in 2009. In 2023, Bangladesh's GDP rose to 7.4%. Due to extensive pro-people programmes, poverty was reduced to 18% and extreme poverty to 5%.' Recalling the UN General Assembly verdict about Bangladesh's economic status, she said that under her Awami League government, the country was finally recognised as a developing nation, and one of the fastest growing economies in the world. Bashing the CA for disrupting the country's economic growth, she said 'He has destroyed the country's economy', adding that the prices of essentials goods is sky high, and unemployment rate has drastically gone up. 'During the Awami League tenure, a day labourer or rickshaw-puller could earn enough to arrange three meals for the family. Now they cannot earn money for one meal. 'We reduced the poverty rate. He has increased it.' Calling the CA a 'very smart liar', she said that inflation in the country had drastically gone up since Yunus took office, increasing up to 14% as opposed to its earlier rate of 8-9%. Condemning his government's use of mob violence as a tool for political gains, and calling his rule a 'mobocracy', she called him 'Mob King Yunus', rubbishing his claims that all her development projects in the country as PM were named after Sheikh Mujibur Rahman because he was her father. Stating that it was a way of showing respect and acknowledging his contributions, Hasina said 'Yunus claims that I named everything after my relatives, parents, and siblings. It is not true. The Father of the Nation brought us independence. You cannot wipe out the name of Bangabandhu no matter how hard you try. 'History takes its own course. Today, you are trying to wipe out the memory of Bangabandhu and remove his name from everywhere. Where do you stand? The name Bangladesh was given by Bangabandhu.' UNI ANV RN
The Print
3 hours ago
- The Print
Rupee strengthens 11 paise to close at 85.68 against US dollar as RBI surprises with jumbo rate cut
Moreover, a surge in the domestic markets supported the rupee at lower levels with both the indices settling with gains of over 1 per cent. Forex traders said the rupee traded on a flat-to-positive note as the RBI surprised the market with a jumbo rate cut. Besides, the rate cut supported by a phased 100 basis points CRR reduction will lower the borrowing costs and boost growth. Mumbai, Jun 6 (PTI) The rupee pared initial losses and appreciated 11 paise to close at 85.68 against the US dollar on Friday, after the Reserve Bank cut repo rate by a higher-than-expected 50 basis points to prop up growth. At the interbank foreign exchange, the domestic unit witnessed heavy volatility. It opened at 85.91, registering a fall of 12 paise over its previous close. But soon pared the losses and saw an early high of 85.66 against the greenback. During Friday's trade, the rupee also saw an intra-day low of 86 and finally settled for the day at 85.68, up 11 paise over its previous close. Dilip Parmar, Senior Research Analyst, HDFC Securities, said, 'The rupee led the pack among Asian currencies, buoyed by the RBI's surprise 50 basis point rate cut. This decisive, growth-driven policy move provided a significant boost to the local currency and fuelled optimism among domestic equity investors.' However, a resurgent dollar index and weakening regional currencies could cap further gains for the rupee, he said. 'From a technical perspective, USD-INR finds support at 85.20 and faces resistance at 86.10.' On Thursday, the rupee snapped its two-day losing streak and closed 8 paise higher at 85.79 against the US dollar. The RBI slashed interest rate by 50 basis points on Friday, a third consecutive reduction, and unexpectedly reduced the cash reserve ratio (CRR) for banks to provide a major liquidity fillip to support the economy amid geopolitical and tariff headwinds. The central bank retained GDP growth projection for the current fiscal at 6.5 per cent. It also changed its monetary policy stance to 'neutral' from 'accommodative', with Malhotra saying further action will depend on incoming data. 'The RBI policy decision was pre-emptive and precise. The surprise CRR cut of 100bps despite a significantly high surplus liquidity signals a strong intent to fast-track transmission while the change in stance back to neutral reflects possible pause on future rate cuts,' Anurag Mittal, Head of Fixed Income at UTI AMC, said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.25 per cent at 98.98. Brent crude, the global oil benchmark, fell 0.26 per cent to USD 65.17 per barrel in futures trade. 'Any further rate cut by the RBI may also pressurise the rupee. However, a positive tone in the domestic markets may support the domestic currency at lower levels. Investors may now focus on the non-farm payrolls report from the US. USD-INR spot price is expected to trade in a range of 85.40 to 86.25,' said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. On the domestic equity market front, the 30-share benchmark index Sensex recovered the initial lost ground and closed 746.95 points, or 0.92 per cent higher at 82,188.99, while the Nifty settled 252.15 points or 1.02 per cent up at 25,003.05. Foreign institutional investors (FIIs) purchased equities worth Rs 1,009.71 crore on a net basis on Friday, according to exchange data. PTI DRR TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
