A recent study published in the Economic & Political Weekly (EPW) has revealed that India has almost eradicated extreme poverty between 2011–12 and 2023–24. The World Bank defines extreme poverty as living on less than $3 per day, adjusted for purchasing power parity (PPP).
This significant research was conducted by a professor from Columbia University, the Chairman of the Sixteenth Finance Commission, and the founder of Intelink Advisors, a research and consulting firm based in New Delhi. The analysis estimates poverty across various social, religious, and economic groups, including distinctions between rural and urban areas, and covers national, state, and Union Territory levels.
The study utilizes the Tendulkar poverty line, which was established at ₹1,714 for 2022–23 and ₹1,804 for 2023–24. Households were classified as poor or non-poor based on these lines, considering their respective states and whether they resided in rural or urban settings.
The national poverty rate saw a dramatic decline from 21.9% in 2011–12 to just 2.3% in 2023–24. This translates to an average annual reduction of approximately 1.64 percentage points. Notably, rural poverty has decreased at a faster rate compared to urban poverty, contributing to this overall reduction.
By 2023–24, the gap between Hindu and Muslim poverty levels has notably narrowed, reflecting improvements at both national and rural levels.
Poverty levels have significantly declined across all social groups, including Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and Forward Castes. However, poverty remains relatively higher among Scheduled Tribes, with a rate of 8.7%, although this indicates a considerable reduction from earlier years. Currently, extreme poverty is predominantly concentrated within tribal populations.
As of 2023–24, no state or Union Territory reports double-digit poverty levels. Noteworthy regions such as Himachal Pradesh, Sikkim, Goa, Chandigarh, Delhi, and Daman & Diu exhibit poverty rates that are effectively zero, up to the first decimal point. These findings imply a historic shift in India’s poverty landscape, indicating that extreme deprivation is becoming increasingly rare across most regions and social groups.
Q1. What defines extreme poverty in India?
Answer: Extreme poverty in India is defined as living on less than $3 per person per day, adjusted for purchasing power parity (PPP).
Q2. How much has India's national poverty rate decreased?
Answer: India's national poverty rate decreased from 21.9% in 2011–12 to 2.3% in 2023–24, indicating a significant reduction in extreme poverty.
Q3. What factors contributed to the decline in poverty rates?
Answer: Factors contributing to the decline include economic growth, targeted poverty alleviation programs, and increased employment opportunities, especially in rural areas.
Q4. How does poverty vary among different social groups in India?
Answer: Poverty rates have decreased across all social groups, but Scheduled Tribes still experience relatively higher poverty levels compared to others.
Q5. Which states have the lowest poverty rates in India?
Answer: States like Himachal Pradesh, Sikkim, Goa, Chandigarh, Delhi, and Daman & Diu have reported poverty rates close to zero in 2023–24.
Question 1: What is the definition of extreme poverty according to the World Bank?
A) Living on less than $1 per day
B) Living on less than $2 per day
C) Living on less than $3 per day
D) Living on less than $5 per day
Correct Answer: C
Question 2: What was the national poverty rate in India in 2011–12?
A) 15.9%
B) 21.9%
C) 30.5%
D) 25.4%
Correct Answer: B
Question 3: Which group reported the highest poverty rate in 2023–24?
A) Hindus
B) Christians
C) Scheduled Tribes
D) Other Backward Classes
Correct Answer: C
Question 4: How much did the poverty rate decrease annually on average from 2011 to 2024?
A) 0.5 percentage points
B) 1.0 percentage points
C) 1.64 percentage points
D) 2.0 percentage points
Correct Answer: C
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