कृपया इसे हिंदी में पढ़ने के लिए यहाँ क्लिक करें
India has achieved a historic reduction in extreme poverty, bringing the rate down to 2.3 percent in fiscal year 2022–23 from 16.2 percent in 2011–12, lifting approximately 171 million people above the internationally recognized extreme poverty line of $2.15 per day (PPP). This remarkable progress was driven by sustained economic growth, targeted social protection schemes such as MGNREGA, financial inclusion programs, and improvements in rural infrastructure. Nonetheless, challenges such as regional disparities, occasional misappropriation in welfare schemes, and non-monetary dimensions of poverty remain.
The Latest Data
- Between 2011–12 and 2022–23, India’s extreme poverty rate (living on less than $2.15 a day) plummeted from 16.2 percent to 2.3 percent, lifting about 171 million people out of extreme poverty.
- Rural extreme poverty fell from 18.4 percent to 2.8 percent, while urban extreme poverty dropped from 10.7 percent to 1.1 percent, narrowing the rural-urban gap from 7.7 to 1.7 percentage points.
- Using the $3.65 per day poverty line for lower-middle-income countries, the poverty rate declined from 61.8 percent to 28.1 percent, lifting 378 million people out of poverty.
- The World Bank’s “Poverty and Equity Brief: April 2025”, released under President Ajay Banga’s leadership, underscores that employment growth has outpaced the expansion of the working-age population.
Historical Context and Backstory
- At independence in 1947, India inherited widespread rural deprivation stemming from colonial land-revenue systems that concentrated land ownership and prioritized cash crops over food security.
- By the 1990s, poverty measured at $1.90 per day (PPP) still affected over 40 percent of the population; the government experimented with several rural employment and relief programs, including the Jawahar Rozgar Yojana (1989), Employment Assurance Scheme (1993), and Sampoorna Gramin Rozgar Yojana (2001).
- In 2005, MGNREGA was enacted, guaranteeing 100 days of wage employment per rural household annually, marking the world’s largest public works program and a rights-based shift in social protection.
Government Schemes Fueling Progress
- MGNREGA: This landmark act provided an estimated safety net to over a quarter of rural households in peak seasons and created millions of person-days of work, thereby boosting rural incomes and food security.
- PM Jan Dhan Yojana (PMJDY): Launched in 2014, it brought over 450 million bank accounts to the unbanked, enabling direct benefit transfers and reducing leakages.
- Health and Nutrition: Schemes like Ayushman Bharat and mid-day meal expansions improved access to healthcare and school attendance, indirectly supporting poverty reduction.
- State-Level Initiatives: Kerala’s “Extreme Poverty Eradication Project” and Andhra Pradesh’s “Jagananna Vidya Deevena” showcase aggressive state efforts to target non-monetary poverty dimensions.
Stories from the Ground
- In rural Uttar Pradesh, smallholder farmer Meena Devi used MGNREGA wages to repair her village’s water tank, doubling agricultural productivity and saving her children from 40 km daily treks for water.
- In Jharkhand, fish-seller-turned-educator Biswanath Naru ran a free school for slum children, demonstrating how community leadership complements government schemes.
- In Tamil Nadu, Shanti Bhavan school alumna Kavya smiles as she recalls how mid-day meals kept her in school, setting her on a path to college—a small triumph echoing millions of similar journeys.
Challenges and Road Ahead
- Leakages and Misappropriation: Social audits have uncovered nearly ₹935 crore misappropriated under MGNREGA over four years, with only 1.34 percent recovered.
- Inequality: Despite falling consumption inequality, income inequality has climbed, underscoring the need for more inclusive growth policies.
- Non-Monetary Poverty: Multidimensional poverty (covering health, education, living standards) remains at 15.5 percent, suggesting persistent hardships beyond income measures.
- Infrastructure Gaps: Rural roads, electricity, and sanitation deficits hinder full empowerment, calling for renewed investments.
Conclusion
India’s drop to 2.3 percent extreme poverty is a milestone achieved through coordinated policy action, economic growth, and grassroots resilience. To sustain and deepen these gains, India must tackle leakages, bolster non-income dimensions of poverty, and ensure equitable growth across regions and communities.
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