NEW DELHI: India has recorded a dramatic decline in poverty, with the proportion of people living below the World Bank’s revised international poverty line of $3.00 per day (2021 Purchasing Power Parity, PPP) dropping from 27.1% in 2011 to just 5.3% in 2022.
The updated poverty threshold, up from the earlier $2.15 line based on 2017 PPP, aims to better reflect today’s global prices and cost-of-living standards.
This revision offers a clearer, more realistic view of deprivation and development across countries. For India, the new metric underscores decades of progress in fighting poverty, particularly since the early 2000s.
Back in 1977, nearly 78% of India’s population lived below the $3-a-day mark. By 1993, the figure had dropped to around 68%, and to about 65% in 2004. However, the most rapid decline occurred in the last two decades. Between 2004 and 2022, the poverty rate fell by nearly 60 percentage points—a trend that accelerated especially after 2011.
In terms of absolute numbers, the change is equally striking. In 2004, over 531 million Indians were classified as poor under the $3 benchmark. That number fell to about 344 million by 2011, and further to just 75 million by 2022.
Several factors explain this sharp decline. India’s consistent economic growth over the past two decades has raised incomes and expanded job opportunities, particularly in urban and service sectors. Government initiatives—such as rural employment schemes, subsidised food programs, and expanded access to electricity, sanitation, and digital services—have also played a critical role in lifting millions out of poverty.
However, the data also point to the importance of continuously updating poverty lines to account for inflation and real consumption patterns. While the older $2.15-a-day metric highlighted India’s poverty gains, the $3-a-day line offers a more nuanced view—capturing those who may have escaped extreme poverty but remain vulnerable.
Overall, the sharp fall in poverty under the revised benchmark reflects both substantial gains and the evolving nature of development challenges in India.