Latest news with #InternationalPovertyLine
The Print
6 hours ago
- Business
- The Print
Extreme poverty in India down to 5.3 pc in 2022-23: World Bank
As against 34 crore people below poverty line (USD 3/per day) in 2011-12, the numbers have come down to 7.5 crore in 2022-23 in absolute numbers. 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. New Delhi, Jun 7 (PTI) 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. The World Bank has announced a major revision to global poverty estimates, raising the International Poverty Line (IPL) from USD 2.15/day (2017 PPP) to USD 3/day (2021 PPP), according to a factsheet issued by the Press Information Bureau (PIB) on the report. 'While the change led to a global increase in the count of extreme poverty by 125 million, India emerged as a statistical outlier in a positive direction. Using more refined data and updated survey methods, India not only withstood the raised threshold but also demonstrated a massive reduction in poverty,' PIB said in its factsheet details issued on Saturday. The new poverty line would have increased the count of global extreme poverty by 226 million people. But thanks to India's data revision, the net global increase was only 125 million, as India's revised data reduced the count by 125 million on its own, it said. In India, the World Bank 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, it had said. PTI DP TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
News18
10 hours ago
- Business
- News18
India Defies Global Poverty Trends Amid World Bank's Revised Estimates: What Does This Mean?
Last Updated: While the revision led to a global increase in the count of extreme poverty by 125 million, India not only withstood the raised threshold but demonstrated a massive drop in poverty India has emerged as a statistical outlier in a positive direction as the World Bank revised global poverty estimates, raising the International Poverty Line from USD 2.15 to USD 3.00 per day (based on 2021 purchasing power parity). While the change led to a global increase in the count of extreme poverty by 125 million, India not only withstood the raised threshold but also demonstrated a massive reduction in poverty, as per a central government fact sheet analysis. This was done using more refined data and updated survey methods. The new poverty line would have increased the count of global extreme poverty by 226 million people. But, due to India's data revision, the net global increase was only 125 million. WHAT DOES THE DATA SAY? According to World Bank data, over the decade from 2011-12 to 2022-23, India has lifted 171 million people out of extreme poverty (under USD 2.15 per day). The overall poverty rate dropped from 16.2 per cent to 2.3 per cent, or 5.3 per cent, when using the updated global benchmark (USD 3.00 per day) while accounting for purchasing power parity (PPP) adjustments. The data further showed reduction in rural poverty down to 2.8 per cent and urban to only 1.1 per cent, with widening access to food‑security schemes playing a key role. Challenges, however, remain in the form of urban youth unemployment and persistent wage inequality. WHY WAS THE POVERTY LINE REVISED? The World Bank said most of this upward revision is explained by revisions in the underlying national poverty lines rather than a change in prices. Here is what the new International Poverty Line (IPL) reflects: HOW DID INDIA INFLUENCE THE WORLD BANK'S GLOBAL BENCHMARK? 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. According to the central government's fact sheet analysis, India's newly revised poverty data significantly softened the blow, reducing the count by 125 million. These figures offset more than half the global increase. India's updated consumption data significantly influenced the World Bank's global benchmark. The standout performance is largely attributed to improvements in data collection and measurement methods, which captured more actual spending leading to a more realistic poverty line and a lower poverty rate despite the increase in threshold. 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, more effectively capturing actual spending. 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. In 2011-12, applying MMRP reduced India's poverty rate from 22.9 per cent to 16.22 per cent, even under the older USD 2.15 poverty line. In 2022-23, poverty under the new USD 3.00 line stood at 5.25 per cent, while under the older USD 2.15 line it dropped further to 2.35 per cent. WHAT IS THE HOUSEHOLD CONSUMPTION SURVEY? The Household Consumption Expenditure Survey (HCES) is designed to collect information on consumption and expenditure of the households on goods and services. Here are the key highlights of the HCES for 2023-24: Average Monthly Per Capita Expenditure (MPCE): In 2023-24, the average MPCE was Rs 4,122 in rural areas and Rs 6,996 in urban areas, excluding the value of items received free through social welfare programmes. When these are included, the figures rise to Rs 4,247 and Rs 7,078, respectively. This is a significant increase from the rural MPCE of Rs 1,430 and urban MPCE of Rs 2,630 in 2011-12 Urban-Rural Consumption Gap: The urban-rural consumption gap has narrowed from 84% in 2011-12 to 70% in 2023-24, indicating a reduction in consumption disparities between urban and rural households. State-wise Trends: All 18 major states reported an increase in average MPCE for both rural and urban areas. Odisha experienced the highest rural increase (about 14%), while Punjab saw the highest urban increase (about 13%). Consumption Inequality: The Gini coefficient, a measure of consumption inequality, decreased from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban areas between 2022-23 and 2023-24, suggesting a reduction in consumption inequality across most major states. SO, HAS POVERTY IN INDIA REDUCED? These findings complement the World Bank's revised figures, reinforcing the conclusion that poverty in India has reduced not just statistically, but through tangible improvements in household living standards and incomes. top videos View all India's poverty decline is a story of technical refinement meeting policy results. In the face of a raised poverty benchmark, the country showed that more honest data, not diluted standards, can reveal real progress. As the global community recalibrates poverty goals, India's example sets a precedent: evidence-based governance, sustained reforms, and methodological integrity can together deliver transformational outcomes. Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : poverty world bank Location : New Delhi, India, India First Published: June 08, 2025, 17:38 IST News explainers India Defies Global Poverty Trends Amid World Bank's Revised Estimates: What Does This Mean?
India Gazette
a day ago
- Business
- 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)
Hans India
a day ago
- Business
- Hans India
Poverty in India reduced via tangible boost in household living standards, incomes
New Delhi: The World Bank's revised figures reinforce that poverty in India has reduced not just statistically, but through tangible improvements in household living standards and incomes, according to a government factsheet released on Saturday. India's poverty decline is a story of technical refinement meeting policy results. In the face of a raised poverty benchmark, India showed that more honest data, not diluted standards, can reveal real progress. As the global community recalibrates poverty goals, India's example sets a precedent: evidence-based governance, sustained reforms, and methodological integrity can together deliver transformational outcomes, the factsheet read. The World Bank has announced a major revision to global poverty estimates, raising the International Poverty Line (IPL) from $2.15 per day (2017 PPP) to $3.00 per day (2021 PPP). While the change led to a global increase in the count of extreme poverty by 125 million, India emerged as a statistical outlier in a positive direction. Using more refined data and updated survey methods, India not only withstood the raised threshold but also demonstrated a massive reduction in poverty. The new poverty line would have increased the count of global extreme poverty by 226 million people. But thanks to India's data revision, the net global increase was only 125 million — as India's revised data reduced the count by 125 million on its own, the data showed. India's latest Household Consumption Expenditure Survey (HCES) adopted the Modified Mixed Recall Period (MMRP) method, replacing the outdated Uniform Reference Period (URP). This shift used shorter recall periods for frequently purchased items and captured more realistic estimates of actual consumption. As a result, consumption recorded in national surveys rose, leading to a drop in poverty estimates. In 2011–12, applying MMRP reduced India's poverty rate from 22.9 per cent to 16.22 per cent, even under the older $2.15 poverty line. In 2022–23, poverty under the new $3.00 line stood at 5.25 per cent, while under the older $2.15 line, it dropped further to 2.35 per cent. In 2023–24, the average Monthly Per Capita Expenditure (MPCE) was Rs 4,122 in rural areas and Rs 6,996 in urban areas, excluding the value of items received free through social welfare programmes. When these are included, the figures rise to Rs 4,247 and Rs 7,078, respectively. This is significant increase from the rural MPCE of Rs 1,430 and urban MPCE of Rs 2,630 in 2011-12. The urban-rural consumption gap has narrowed from 84 per cent in 2011–12 to 70 per cent in 2023–24, indicating a reduction in consumption disparities between urban and rural households. All 18 major states reported an increase in average MPCE for both rural and urban areas. Odisha experienced the highest rural increase (about 14 per cent), while Punjab saw the highest urban increase (about 13 per cent). 'The Gini coefficient, a measure of consumption inequality, decreased from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban areas between 2022–23 and 2023–24, suggesting a reduction in consumption inequality across most major states,' according to the factsheet.
India Today
a day ago
- Business
- India Today
India's poverty rate sees sharp decline, falls to 5.3% in 2022-23
India has emerged as a crucial factor in offsetting a sharp global rise in poverty following the World Bank's announcement of a major revision to the International Poverty Line (IPL). The Bank raised the IPL from USD 2.15 per day (2017 purchasing power parity) to USD 3.00 per day (2021 PPP), a change that would have otherwise increased the global count of extreme poor by 226 million thanks to India's updated consumption data and improved survey methodology, the net global increase stood at 125 million - with India alone accounting for a reduction of 125 million in the revised estimates, a government release citing World Bank data said. The revision to the IPL reflects a combination of global changes, including revised national poverty lines in low-income countries, improved measurement of consumption - particularly food and non-food items - and the adoption of updated 2021 PPP estimates. These changes were introduced to better capture real-world living costs and consumption patterns across countries. India's influence on this global recalibration has been significant. India's latest Household Consumption Expenditure Survey (HCES) employed the Modified Mixed Recall Period (MMRP) method, replacing the outdated Uniform Reference Period (URP). Under MMRP, frequently purchased items are recorded over shorter recall periods, allowing for a more accurate and realistic capture of household methodological shift led to a notable rise in recorded consumption, which in turn contributed to a lower estimate of poverty. For instance, in 2011-12, applying the MMRP method brought India's poverty rate down from 22.9 per cent to 16.22 per cent, even when assessed under the older USD 2.15 poverty the latest 2022–23 data, India's poverty rate stood at 5.25 per cent under the new USD 3.00 threshold, and dropped even further to 2.35 per cent under the previous USD 2.15 Watch
