As per the World Bank’s Spring 2025 report, India has lifted 171 million people out of extreme poverty.

Key Highlights of India’s 2025 Poverty and Equity Brief

• Extreme Poverty: Reduced significantly from 16.2% in 2011-12 to 2.3% in 2022-23.

• Lower-Middle-Income Poverty: Fell from 61.8% to 28.1% during the same period, lifting 378 million people.
• Rural-Urban Gap: Narrowed from 7.7 percentage points to 1.7 points in extreme poverty.
• Multidimensional Poverty: Dropped from 53.8% in 2005-06 to 16.4% by 2019-21; stood at 15.5% in 2022-23.
• Gini Index: Improved from 28.8 (2011-12) to 25.5 (2022-23), indicating reduced income inequality.

Key Factors Responsible for Poverty Reduction

• Targeted Welfare Schemes: Schemes like SBM, PMAY, Poshan Abhiyan, and Samagra Shiksha improved health, housing, nutrition, and education, significantly reducing multidimensional poverty 
• Economic Reforms and Inclusive Development: Broad-based growth across rural and urban areas led to a sharp fall in lower-middle-income poverty.
• Access to Basic Services: Initiatives like JJM, Saubhagya, and PMJDY enhanced access to drinking water, electricity, and banking, fostering inclusive development.
• Rise in Employment: Post-2021, employment growth outpaced the working-age population, with a notable increase in female workforce participation and a drop in urban unemployment to 6.6%.
• Workforce Shift: A significant shift of male workers to urban jobs and rise in self-employment among rural women boosted incomes and resilience.

Government Initiatives Addressing Multidimensional Poverty

• Swachh Bharat Mission (SBM): Promoted sanitation and eliminated open defecation, improving public health and hygiene.
• Jal Jeevan Mission (JJM): Ensured access to piped drinking water in rural households, improving quality of life.
• Poshan Abhiyan: Addressed malnutrition among children, pregnant and lactating women through better nutrition and awareness.
• Samagra Shiksha: Integrated school education program improving access, quality, and equity in schooling.
• Pradhan Mantri Awas Yojana (PMAY): Provided affordable housing to urban and rural poor, enhancing living conditions.

Challenges in Poverty Reduction in India

• Population Growth: Puts pressure on public infrastructure and resources.
• Rapid Urbanization: Leads to rise in slums and informal settlements.
  • As per World bank 2036, India’s towns and cities will be home to 600 million people, or 40 percent of the population, up from 31 percent in 2011.
• Climate Change: Disproportionately affects poor communities through disasters and livelihood loss.
  • More than 80 percent of India’s people live in districts that are at risk of climate-induced disasters.
• Economic Disruptions: Events like global recessions and pandemics deepen vulnerability.
• Policy Implementation Gaps: Corruption, delays, and inefficiency hinder program effectiveness.

Way Forward

• Inclusive Economic Growth: Promote industrialisation, entrepreneurship, and access to microfinance.
• Social Interventions: Invest in universal healthcare and quality education to empower the poor.
• Infrastructure Development: Expand housing, roads, sanitation, and connectivity in underdeveloped regions.
• Strengthen Governance: Improve transparency, accountability, and community participation in policy delivery.
• Sustainable Development: Focus on climate-resilient infrastructure and renewable energy adoption.

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