World Bank Reports India’s Success in Poverty Alleviation Through Welfare Initiatives and Economic Reforms
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Synopsis
According to the World Bank's report, India's targeted welfare schemes and economic reforms have significantly reduced poverty levels, lifting 171 million people out of extreme poverty and improving living standards.
Key Takeaways
- 171 million people lifted out of extreme poverty.
- Extreme poverty in rural areas fell from 18.4% to 2.8%.
- Urban poverty dropped from 10.7% to 1.1%.
- Rural-urban poverty gap narrowed from 7.7 to 1.7 percentage points.
- Five populous states contributed to two-thirds of the decline in extreme poverty.
New Delhi, April 26 (NationPress) India has achieved significant progress in reducing poverty levels thanks to targeted welfare initiatives and economic reforms, as highlighted in the recent report by the World Bank.
In the Spring 2025 Poverty and Equity Brief, the World Bank commended India’s robust efforts in combating poverty. The report states that India has successfully lifted 171 million individuals out of extreme poverty.
According to the report, “This accomplishment reflects the Government of India’s dedication to inclusive development, emphasizing both rural and urban regions. Through targeted welfare programs, economic reforms, and improved access to essential services, India has made considerable advancements in lowering poverty levels.”
It observed a marked decrease in extreme poverty across both rural and urban settings.
Extreme poverty in rural areas plummeted from 18.4 percent in 2011-12 to 2.8 percent in 2022-23, while urban regions experienced a drop from 10.7 percent to 1.1 percent within the same timeframe.
The disparity between rural and urban poverty diminished from 7.7 percentage points to 1.7 percentage points, showcasing an annual decline rate of 16 percent from 2011-12 to 2022-23.
Additionally, India has made notable progress in reducing poverty among the lower-middle-income demographic.
Rural poverty decreased from 69 percent to 32.5 percent, whereas urban poverty fell from 43.5 percent to 17.2 percent.
The rural-urban poverty gap contracted from 25 to 15 percentage points, with a 7 percent annual decline noted between 2011-12 and 2022-23.
The report highlighted the significant impact of five populous states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—in mitigating extreme poverty.
In 2011-12, these states accounted for 65 percent of India’s extreme poor. By 2022-23, they contributed to two-thirds of the overall reduction in extreme poverty.
Moreover, the report indicated an increase in employment, particularly among women, and a decline in multidimensional poverty, signaling broader enhancements in living standards.
The Poverty and Equity Briefs from the World Bank spotlight trends in poverty, shared prosperity, and inequality across over 100 developing nations.
Published biannually for the Spring and Annual Meetings of the World Bank Group and the International Monetary Fund, these briefs provide a snapshot of a country’s poverty and inequality landscape, reinforcing that poverty reduction remains a global priority.
