Can India Achieve the Fastest Rate of Poverty Reduction?
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Synopsis
Discover how India has achieved remarkable success in poverty reduction, lifting over 269 million individuals out of extreme deprivation. This transformative journey, fueled by economic growth and welfare initiatives, showcases India's potential to nearly eradicate poverty by 2025.
Key Takeaways
- India's poverty rate fell from 27.1% to 5.3% between 2011-2023.
- Over 269 million people have escaped extreme poverty.
- Rural poverty declined significantly, from 18.4% to 2.8%.
- Four states contributed to two-thirds of the national decline.
- India is on track to meet SDG targets ahead of schedule.
New Delhi, Aug 12 (NationPress) India has achieved an unprecedented rate of poverty reduction among large nations, allowing over 269 million individuals to rise above extreme deprivation between 2011-12 and 2022-23. This significant progress is attributed to consistent economic growth, effective welfare initiatives, and the strategic application of technology, as highlighted in an article by India Narrative.
The extreme poverty rate in India plummeted from 27.1 percent to just 5.3 percent during this timeframe. Projections suggest that by 2025, the national extreme poverty rate could further decrease to 4-4.5 percent, approaching total eradication.
Particularly noteworthy is the transformation in rural areas, where poverty declined from 18.4 percent to 2.8 percent, reflecting both agricultural reforms and rural welfare programs. Urban poverty also saw a dramatic drop from 10.7 percent to 1.1 percent, indicative of urban employment growth and more effective social safety nets.
Four states—Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan—were instrumental in driving nearly two-thirds of the national poverty reduction. Uttar Pradesh alone facilitated the upliftment of approximately 60 million people out of poverty, highlighting the impact of targeted interventions in historically disadvantaged regions.
While financial poverty is a crucial metric, deprivation often encompasses health, education, and living conditions. India’s Multidimensional Poverty Index (MPI) reflects this broader landscape.
India's consistent GDP growth, averaging over 7 percent annually for the last 15 years, has been a key driver of poverty reduction. This growth has generated jobs, increased wages, and expanded the tax base to support welfare programs. The synergy of market-driven opportunities and state-supported safety nets has established a unique dual engine for poverty alleviation.
The process of urbanization has also contributed, as growing cities provide employment, infrastructure, and essential services. Additionally, remittances from migrant workers have enhanced rural incomes, while advancements in agricultural productivity have bolstered rural resilience.
India is poised to meet the Sustainable Development Goal (SDG) of halving multidimensional poverty well ahead of the 2030 deadline. The UNDP and World Bank have acknowledged India's model for its scalability and cost-effectiveness. In a global context, India's poverty reduction over the last decade signifies one of the largest absolute declines in poverty ever documented, the article noted.
Point of View
I affirm that India's progress in poverty reduction is a testament to the power of strategic planning and targeted interventions. The nation's commitment to uplift underserved communities reflects a robust approach to sustainable development, aligning with national goals while ensuring inclusivity.
NationPress
08/09/2025
Frequently Asked Questions
What factors contributed to India's poverty reduction?
India's poverty reduction can be attributed to consistent economic growth, effective welfare programs, and strategic implementation of technology.
What is the current extreme poverty rate in India?
As of 2022-23, India's extreme poverty rate has decreased to 5.3%, with projections suggesting a further drop to 4-4.5% by 2025.
Which states contributed most to poverty reduction?
Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan accounted for nearly two-thirds of the national poverty decline, with Uttar Pradesh lifting around 60 million people out of poverty.
How does urbanization affect poverty in India?
Urbanization has played a crucial role by providing jobs, infrastructure, and access to services, significantly reducing urban poverty.
What is the Multidimensional Poverty Index (MPI)?
The Multidimensional Poverty Index (MPI) is a measure that captures various forms of deprivation beyond mere income, including health, education, and living standards.
