Prime Minister Narendra Modi has stated that the elimination of poverty remains a firm commitment of his government, rejecting the notion that such goals are merely rhetorical slogans. In a statement released on Saturday, the Prime Minister highlighted significant progress in India's socio-economic landscape, referencing recent findings from the World Bank that detail a sharp decline in the country’s extreme poverty rates over the last 12 years.
According to the World Bank data cited by the Prime Minister, India has witnessed one of the most rapid reductions in poverty globally. Between 2011 and 2023, the rate of extreme poverty in the nation collapsed by 90%, dropping to a level of 2.6%. This shift, the Prime Minister noted, represents a transition from more than one in four Indians living in extreme poverty to approximately one in 38. He further underscored the scale of this achievement, noting that nearly 50 crore people have successfully moved out of extreme poverty during this period.
Beyond the reduction in poverty, the Prime Minister pointed to improvements in employment and income distribution. He stated that approximately 13.4 crore new jobs were created between 2017 and 2023, a figure he noted was nearly double the increase in the country's working-age population during the same timeframe. Additionally, he highlighted a sharp reduction in inequality, noting that India’s Gini index—a metric used to measure the equitable distribution of income and wealth—dropped by over 20% since 2011, falling from 29 to 23 in 2023.
The World Bank’s latest Poverty and Equity brief, released last week, provides further context to these developments. The report projects that India’s poverty rate, when defined at a threshold of $4.2 per day, is expected to fall to 12.1% by 2028, down from 57.7% in 2011 and 16.1% in 2023. For the purpose of its analysis on extreme poverty, the bank utilized a threshold of $3 per day, which corroborated the significant decline observed since 2011.
The international financial institution attributed this economic progress to several key factors. According to the World Bank, the decline has been driven primarily by robust consumption growth, rising employment rates—particularly among women—and the expansion of social transfer programs, such as food subsidies. These initiatives have played a critical role in bolstering the economic standing of vulnerable populations across the country.
Despite the positive trajectory, the World Bank brief also identified ongoing challenges within the economy. As overall poverty levels have decreased, the remaining instances of poverty have become increasingly concentrated among households that face specific disadvantages, such as lower levels of education, limited access to stable employment, fewer assets, and higher dependency ratios.
Furthermore, the report noted that wage disparities continue to persist. As of 2023, the median earnings of workers in the top 10% bracket were approximately 13 times higher than those in the bottom 10%. While the broader indicators reflect a significant improvement in living standards for millions, these persistent disparities remain a focal point for economic analysts and policymakers as the country looks toward future growth and development targets.
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