World Bank report says that India’s poverty significantly dropped in just between 2011-12 and 2022-23. Report says that the country lifted approximately 170 million people out of poverty.
In rural areas a bigger drop in extreme poverty is seen i.e. from 18.4% to 2.8% than urban areas i.e. from 10.7% to 1.1%.This shows that the poverty reduction program played a important role in villages to reduce the poverty. Extreme poverty here means living on less than $2.15 a day.
In 2011-12, 5 states (Uttar Pradesh, Maharashtra, Bihar, West Bengal, Madhya Pradesh) had 65% of India’s poorest people. But by 2022-23, these states were responsible for two-thirds of the poverty reduction. These states still make up 54% of those in extreme poverty.
If looked upon data based on spending (consumption), inequality has reduced:
Gini Index fell from 28.8 to 25.5. But based on income, inequality has grown and Gini Index rose from 52 in 2004 to 62 in 2023. Data reveals that the top 10% earn 13 times more than the bottom 10%.
The World Bank says that the data is based on two surveys i.e., 2011-12 Consumption Survey and 2022-23 Household Consumption Survey. Therefore comparing data over time is difficult due to changes in how the survey was done. It also says inequality might be underestimated due to survey limitations.
Finance Minister Nirmala Sitharaman said that since 2021-22, employment is growing faster than working-age population. More men moving from villages to cities for work and women are focusing in agriculture in rural areas.