Context:

• The World Bank has released the 'Poverty and Equity Brief' report.

According to the Report:

•  India lifted 171 million people (17.1 crore) out of extreme poverty between 2011-12 and 2022-23.
• The World Bank, in its Spring 2025 Poverty and Equity Brief, recognized India’s decisive fight against poverty.
• The proportion of people living on less than USD 2.15 per day, the international standard for extreme poverty, sharply fell from 16.2% in 2011-12 to just 2.3% in 2022-23.

Decline in Extreme Poverty in India (2011-23):

• Rural extreme poverty declined from 18.4% to 2.8%.
• Urban extreme poverty declined from 10.7% to 1.1%.
• Rural-urban poverty gap reduced from 7.7% to 1.7%.
• Annual poverty reduction rate was recorded at 16% between 2011-12 and 2022-23.

Progress on the Lower-Middle-Income Poverty Line:

According to the World Bank, India made strong progress in reducing poverty at the lower-middle-income poverty line, set at USD 3.65 per day.

• Poverty rate at the USD 3.65 per day line fell from 61.8% in 2011-12 to 28.1% in 2022-23, pulling 378 million people out of poverty.
• Rural poverty dropped from 69% to 32.5%, while urban poverty fell from 43.5% to 17.2%.
• Rural-urban poverty gap decreased from 25% to 15%, with a 7% annual decline between 2011-12 and 2022-23.

Key States Contributing to Poverty Reduction:

The report highlights that significant progress was made across India, and key states played a major role in reducing poverty and advancing inclusive growth:

• The five most populous states — Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh — represented 65% of India’s extreme poor in 2011-12.
• By 2022-23, these states contributed to two-thirds of the total decline in extreme poverty.

Reduction in Multidimensional Poverty and Revised Estimates:

According to the World Bank, India has made significant progress in reducing non-monetary poverty and future poverty estimates are expected to change based on updated global standards:

• Multidimensional Poverty Index (MPI), which considers factors like education, health, and living conditions, fell from 53.8% in 2005-06 to 16.4% in 2019-21.
• The World Bank’s own measure of multidimensional poverty stood at 15.5% in 2022-23, reflecting ongoing improvements in living conditions.
• With the adoption of revised international poverty lines (based on basic needs) and 2021 Purchasing Power Parity (PPP) adjustments (reflecting cost of living differences), new poverty rates for 2022-23 are expected to be:

• 5.3% for extreme poverty
• 23.9% for lower-middle-income poverty.

• • India's consumption-based Gini index improved from 28.8 in 2011-12 to 25.5 in 2022-23, indicating a reduction in income inequality.

Employment Growth and Changing Workforce Trends:

Since 2021-22, India has seen positive improvements in employment growth across both rural and urban areas:

• Employment growth since 2021-22 has outpaced the working-age population growth, with increasing female employment rates.
• The urban unemployment rate fell to 6.6% in Q1 of fiscal year 2024/25, the lowest since 2017-18.
• Recent data indicates, for the first time since 2018-19, a shift of male workers from rural to urban areas, while rural female employment in agriculture has increased.
• There has been an increase in self-employment, particularly among rural workers and women, contributing to greater economic participation.

World Bank:

• Also known as the International Bank for Reconstruction and Development (IBRD).
• It is an international financial organization that provides loans, financial advice, and technical assistance to developing countries.
• Comprises five institutions working towards poverty eradication and building shared prosperity.

      Details                                                                                    Information

Established                            1944

Headquarters                         Washington, D.C., USA

Current President                  Ajay Banga

Objective                                To reduce poverty and promote sustainable development in developing countries

Functions                               Financing development projects, offering technical assistance, and providing policy advice

Motto                                      "Working for a World Free of Poverty"