India Lifts Over 170 Million People Out of Poverty: World Bank Report Sparks Political Credit War

April 27, 2025

Massive Decline in Extreme Poverty, Says World Bank

According to the World Bank’s latest "Poverty and Equity Brief" report, extreme poverty in India has dramatically declined between 2011-12 and 2022-23.
The number of people living below the international poverty line (USD 2.15/day) dropped from 16.2% to just 2.3%, lifting 171 million people above extreme poverty.

The findings also highlight a sharp fall in rural poverty from 18.4% to 2.8%, and a decrease in urban poverty from 10.7% to 1.1% during this period.
The rural-urban poverty gap has significantly narrowed from 7.7 to 1.7 percentage points, indicating faster poverty alleviation in rural India.

Government Claims Success of Inclusive Development Model

The Narendra Modi-led Central Government quickly welcomed the World Bank's findings.
The Ministry of Information and Broadcasting issued a statement calling it a "decisive victory" against poverty and an endorsement of the government’s pro-poor policies.

The Centre attributed this achievement to targeted welfare programs like PM Awas Yojana, PM Garib Kalyan Anna Yojana (PMGKAY), Direct Benefit Transfer (DBT), rural electrification, and expansion of health services through Ayushman Bharat.
It reiterated that India's focus on inclusive development, spanning rural and urban sectors, was instrumental in achieving this milestone.

Congress Credits Economic Reforms and Welfare Schemes

On the other hand, Congress Party leader Jairam Ramesh argued that the foundations of India’s poverty reduction were laid during earlier regimes.
He credited:

The 1991 economic liberalization reforms initiated by the Congress government.
The Manmohan Singh government's welfare schemes during 2004-2014, notably:
- MGNREGA (2005) — providing a rural employment guarantee.
- National Food Security Act (2013) — ensuring subsidized food grains.

Jairam Ramesh emphasized that these measures created a social safety net that shielded millions from falling back into poverty and that the momentum started decades ago.

Broader Metrics of Poverty Reduction

The report also evaluated poverty using the World Bank’s lower-middle-income poverty line of USD 3.65/day:

Poverty rates fell from 61.8% to 28.1%, lifting around 378 million people.
Rural poverty dropped from 69% to 32.5%.
Urban poverty fell from 43.5% to 17.2%.

The five most populous states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—played a dominant role, contributing to two-thirds of the overall decline.

Conclusion: A Shared Milestone Amid Political Debate

Regardless of the political contest for credit, the facts remain — India has witnessed an unprecedented decline in extreme poverty over the past decade.
The achievement reflects a combination of economic growth, targeted welfare interventions, and resilient social policies across successive governments.

As India moves toward its ambitious Viksit Bharat 2047 goal, sustaining this trajectory will require continued reforms, stronger social safety nets, and inclusive economic policies that ensure prosperity reaches every citizen.