Poverty in India

Poverty in India remains a big challenge, even though it has improved a lot over the last few decades as the economy has grown. Extreme poverty, meaning living on $1.90 or less a day, was as low as 0.8% in 2019 and stayed at that level in 2020, even during the COVID-19 outbreak. From 2011 to 2019, the number of people in extreme poverty dropped from 22.5% to 10.2%. In rural areas, poverty fell from 26.3% to 11.6%, and in cities, it went down from 14.2% to 6.3%.

Many programs have helped lift people out of poverty. India managed to bring 271 million people out of extreme poverty between 2005–2006 and 2015–2016. By 2022–2023, extreme poverty had fallen to just 2.3% of the population, with 378 million people moving out of poverty overall. This improvement is largely due to government welfare programs that provide food and money to people with low incomes and improve their access to services.

Even with these gains, millions still struggle to meet their basic needs. In 2019, about 6.7% of India’s population lived below the official poverty line. While economic growth has helped, many people still live on the edge, and efforts continue to reduce poverty further. The country is working toward ending extreme poverty by 2030 through continued support and development programs.

Definition of poverty

Poverty means not having enough money or things to meet basic needs like food, clothing, and a place to live. It can also include social and political aspects.

India uses different ways to measure poverty. Some use income levels, while others look at how much people spend on basic goods. Each state in India has its own rules to decide who is poor, which helps consider local economic conditions.

The World Bank, an international group, measures poverty differently to compare countries. In 2012, India had the most people living in poverty worldwide because of its large population. By 2019, India had fewer people in extreme poverty than Nigeria and Congo. Even so, many people in India still live on less than $3.20 a day, which places the country in the lower middle income group of economies.

Poverty prevalence and estimates

During the 1800s and early 1900s, when India was ruled by Britain, many parts of the country faced growing poverty. British leaders changed India’s economy, moving people from making goods to farming. They grew crops like opium for export, especially in areas along the Ganges River. This shift caused many problems, including frequent shortages of food.

Even after India gained independence, poverty remained a big challenge. In the years following independence, different groups tried to measure poverty in various ways. Some looked at how much money people earned, while others focused on what people could buy with their money.

By the 2010s, the World Bank, an international group that helps countries, changed how it measured poverty around the world. They decided that someone living on $1.90 or less every day was in extreme poverty. Using this measure, India had made progress, but many people still faced hard times.

In more recent years, India has continued to work on reducing poverty. Surveys and reports show that poverty rates have gone down, but there is still much work to be done to ensure all people have what they need to live well.

Other estimates

In 2011, a report said that many people in India and China were moving out of extreme poverty. It said India's poverty rate would drop from 51% in 1990 to about 22% by 2015. By 2015, India had already cut its poverty in half, with 24.7% of its people living below the poverty line.

According to a report in 2016, India was one of the most unequal countries in the world. Around 21.25% of India's people live on less than US$1.90 a day. India is also home to many undernourished people.

The Global Hunger Index measures how well a country is doing in fighting hunger. In 2011, India had improved by 22% over 20 years, but progress slowed after 2001. By 2014, the number of underweight children under five had dropped, and India ranked 55 out of 76 countries.

Reduction in poverty

Since the 1950s, the Indian government and groups that help people have started many programs to fight poverty. These include helping with food costs, giving loans, teaching better farming methods, and encouraging education. These efforts have helped end severe hunger, cut deep poverty in half, and improved reading and health for many.

Even though India's economy has grown, progress has not been the same for everyone. Some places and groups have done better than others. While many people are moving out of extreme poverty, India still has a lot of work to do in areas like health and education. Many people still earn less than what the government considers enough to live on.

The World Bank says India has done a lot to reduce poverty, especially between 2008 and 2011, helping many people. Programs like the Mahatma Gandhi National Rural Employment Guarantee Act and school lunch plans have been important. Even with growth, some groups still face big challenges. India’s strong economy and many helpful programs have pulled millions out of poverty, and more progress is expected in the future.

UN

A report from the United Nations on July 12, 2023, showed that India helped about 415 million people move out of poverty between 2005/2006 and 2019/2021. The report said that India and 25 other countries reached a big goal by cutting their Multidimensional Poverty Index in half in just 15 years. The report also noted that India made improvements in many areas, especially for the poorest states and groups, including children and those from disadvantaged backgrounds.