Extreme Poverty in India

Extreme Poverty in India: Recently, according to the latest World Bank data, India’s extreme poverty rate declined significantly to 5.3% in 2022-23, down from 27.1% in 2011-12.

o This follows the World Bank’s increase of the global extreme poverty line from $2.15 to $3 per day.

• Major highlights of the report:

o Mjaor progress in states like - Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh, which together accounted for 65% of India’s extreme poor in 2011-12.

o These states contributed to 75% of the total poverty reduction over the past decade.

o Multidimensional Poverty Index: ê from 54% in 2005-06 to 15.5% in 2022-23.

o Urban and rural poverty: The decline in poverty has been widespread across both rural and urban areas.

ü Rural poverty: decreased from 18.4% to 2.8%,

ü urban poverty: fell from 10.7% to just 1.1%over the 11-year period.

• About World Bank: Founded in 1944 at the Bretton Woods Conference to create a new post-World War II international economic system.

o HQ: Washington DC, USA & Member countries: 189 (India is a founding member).

o Formed by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) together.