Recently,  The  World Bank report (The ‘Poverty, Prosperity and Planet: Pathways out of the Polycrisis’) revealed that 129 million Indians are living in extreme poverty in 2024. 

World Bank Report on Poverty in India: Key Findings

• Extreme Poverty in India
  • In 2024, 129 million Indians lived in extreme poverty, earning less than $2.15 (about ₹181) a day.
    • This is a significant reduction from 431 million in 1990.
  • In 2021, extreme poverty in India decreased by 38 million, bringing the total to 167.49 million after an increase in previous years.
  • Higher Poverty Standard
    • With a poverty line set at $6.85 (Rs 576) per day, more Indians are now below the poverty line than in 1990.
    • This increase is primarily due to population growth.

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• Survey Methodology Changes in India:
  • India’s Household Consumption and Expenditure Survey (HCES) for 2022-23 used the Modified Mixed Reference Period (MMRP) method for data collection, which could affect future poverty estimates.
    • The report highlights the need for careful analysis of recent survey data from the Household Consumption and Expenditure Survey (HCES) for 2022-23.
    • India has experimented with different recall periods (the time respondents recall past consumption) to improve data accuracy.
• Global Trends in Poverty
  • The World Bank report states that global poverty reduction has slowed considerably.
  • 700 million people (8.5% of the global population) live in extreme poverty, earning less than $2.15 per day.
  • Progress has slowed due to low growth, the COVID-19 pandemic, and increased fragility.
    • Poverty rates in low-income countries are worse than before the pandemic.
  • The decade from 2020 to 2030 is expected to be a “lost decade” for poverty eradication.
  • At the current rate, extreme poverty eradication by 2030 is unlikely.
    • It will take decades to eradicate extreme poverty and over a century to lift people above the $6.85/day mark.
    • Solutions to help Poor
      • Improving labor incomes, creating better jobs, and investing in education, infrastructure, and basic services to help people in poverty.
• India’s Role in Global Poverty
  • India’s contribution to global extreme poverty is projected to decline significantly over the next decade.
  • Even if India reduces its extreme poverty rate to zero by 2030, the global extreme poverty rate would only fall from 7.31% to 6.72%, still above the 3% target.

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