Extreme poverty in India down to 5.3% in 2022-23

India’s extreme poverty rate declined sharply to 5.3% over a decade from 27.1% in 2011-12, according to the World Bank’s revised poverty line to $3 per day (daily consumption of less than $3) on 2021 PPP.

Poverty Rate at $3 per day (Revised International Poverty Line)

• Poverty rate declined from 27.1% in 2011-12 to 5.3% in 2022-23.
• In 2024, 5.44% of India’s population (approx. 54.7 million people) lived on less than $3/day (2021 PPP).

Poverty Rate at $2.15 per day (Earlier Poverty Line, 2017 PPP)

• Declined from 16.2% in 2011-12 to 2.3% in 2022-23.
• Indicates a major drop in extreme poverty.

Lower Middle-Income Country (LMIC) Poverty Line

• LMIC threshold revised to $4.20/day (from $3.65 in 2017).
• Poverty rate at LMIC line:
  • Fell from 57.7% in 2011-12 to 23.9% in 2022-23.
  • At $3.65/day (older LMIC line), poverty fell from 61.8% to 28.1% (approx. 401 million people in 2022).

Rural vs Urban Poverty

• Rural extreme poverty declined from 18.4% to 2.8%.
• Urban extreme poverty declined from 10.7% to 1.1%.
• Rural-urban poverty gap narrowed from 7.7% to 1.7%.
• Poverty declined at an average rate of 16% annually.

Role of Government Support

• Free and subsidised food transfers contributed significantly to poverty reduction.

Geographic Concentration

• Five most populous states account for 54% of India’s extremely poor.

Multidimensional Poverty Index (MPI)

• MPI considers non-monetary aspects: income, education, enrolment, drinking water, sanitation, electricity.
• India’s MPI dropped from 53.8% (2005-06) to 15.5% (2022-23).

India’s Poverty Reduction: Key Statistics (World Bank Data)

Poverty Measure	2011–12	2022–23	2024 (if available)	Change
Poverty Rate (< $3/day) (2021 PPP)	27.1%	5.3%	5.44%	▼ 21.7 percentage points
People < $3/day	—	—	54.7 million	—
Extreme Poverty (< $2.15/day) (2017 PPP)	16.2%	2.3%	—	▼ 13.9 percentage points
LMIC Line (< $4.20/day) (2021 PPP)	57.7%	23.9%	—	▼ 33.8 percentage points
LMIC Line (< $3.65/day) (2017 PPP)	61.8%	28.1% (2022)	—	▼ 33.7 percentage points
People < $3.65/day	—	401 million	—	—
Rural Extreme Poverty	18.4%	2.8%	—	▼ 15.6 percentage points
Urban Extreme Poverty	10.7%	1.1%	—	▼ 9.6 percentage points
Rural-Urban Poverty Gap	7.7 p.p.	1.7 p.p.	—	Narrowed by 6 percentage points
Multidimensional Poverty Index (MPI)	53.8% (2005–06)	15.5%	—	▼ 38.3 percentage points
Top 5 States (share of extreme poor)	—	—	54%	—