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India's Poverty Rate Plummets to 5.3%, Set to Drop Further

6/11/2025

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Summary

Story summary

India's extreme poverty rate has plummeted from 27.1% in 2011-12 to just 5.3% in 2022-23, thanks to impactful economic reforms and targeted welfare initiatives. The State Bank of India projects this figure will dip even further to 4.6% by 2024, with the new poverty line set at $3 per day.

History

Historical Context

In 1991, India faced a severe foreign exchange crisis, prompting Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh to initiate economic liberalization reforms. These changes spurred an annual GDP growth rate of 6.1% and significantly reduced extreme poverty from 27.1% in 2011-12 to 5.3% in 2022-23, showcasing the reforms' effectiveness in transforming the economy.

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Story summary

India's extreme poverty rate has plummeted from 27.1% in 2011-12 to just 5.3% in 2022-23, thanks to impactful economic reforms and targeted welfare initiatives. The State Bank of India projects this figure will dip even further to 4.6% by 2024, with the new poverty line set at $3 per day.

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