India has emerged as a crucial factor in offsetting a sharp global rise in poverty following the World Bank’s announcement of a significant 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 shift that would have otherwise increased the global tally of extreme poor by 226 million people.
India’s updated consumption data and improved survey methodology played a pivotal role in cushioning the impact-bringing its own poverty rate down to 5.25 per cent in 2022-23 under the new threshold, and contributing to a net global increase of just 125 million, a government release said, citing World Bank data.
“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 release said.
The country’s poverty rate dropped sharply from 16.22 per cent in 2011-12 to just 5.25 per cent in 2022-23. In absolute numbers, India reduced its population living under the poverty line from 205.9 million in 2011-12 to 75.2 million in 2022-23, marking a remarkable decline of over 125 million.
