India reduced poverty levels with targeted welfare schemes, economic reforms: World Bank

New Delhi, April 26 India has made substantial strides in reducing poverty levels with targeted welfare schemes, and economic reforms, according to the latest report by the World Bank.

In its Spring 2025 Poverty and Equity Brief, the World Bank acknowledged India's decisive fight against poverty. According to the report, India has lifted 171 million people out of extreme poverty.

“This achievement is a testament to the Government of India’s commitment to inclusive development, focusing on both rural and urban areas. Through targeted welfare schemes, economic reforms, and increased access to essential services, India has made substantial strides in reducing poverty levels,” the report said.

It noted a sharp reduction in extreme poverty in both rural and urban areas in the country.

While extreme poverty fell from 18.4 per cent in 2011-12 to 2.8 per cent in 2022-23 in rural areas, urban centres saw a reduction of extreme poverty from 10.7 per cent to 1.1 per cent over the same period.

The gap between rural and urban poverty shrunk from 7.7 percentage points to 1.7 percentage points, with an annual decline rate of 16 per cent between 2011-12 and 2022-23.

Notably, India also made strong gains in reducing poverty at the lower-middle-income level.

Rural poverty declined from 69 per cent to 32.5 per cent, while urban poverty dropped from 43.5 per cent to 17.2 per cent.

The rural-urban poverty gap narrowed from 25 to 15 percentage points, with a 7 per cent annual decline between 2011-12 and 2022-23.

The report also noted the role of the five most populous states -- Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh -- in reducing extreme poverty.

In 2011-12, these states represented 65 per cent of India’s extreme poor.

In addition, the report stated a rise in employment, especially among women, and a reduction in multidimensional poverty, pointing to broader improvements in living standards.

The Poverty and Equity Briefs from the World Bank highlight trends in poverty, shared prosperity, and inequality for over 100 developing countries.

Published twice a year for the Spring and Annual Meetings of the World Bank Group and the International Monetary Fund, these briefs offer a snapshot of a country’s poverty and inequality context, ensuring poverty reduction remains a global priority.

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