India's Decade of Change: Lifting Millions from Poverty

Between 2011-12 and 2022-23, India reduced extreme poverty significantly, lifting 171 million people above the poverty line. Rural and urban poverty rates saw notable declines. These changes contribute to India's transition into a lower-middle-income economy, though challenges like youth unemployment and gender disparity persist.

In the past decade, India has made remarkable strides in reducing poverty. According to the World Bank's recent 'Poverty & Equity Brief’, 171 million people were lifted out of extreme poverty between 2011-12 and 2022-23. Extreme poverty, defined as living on less than USD 2.15 per day, fell from 16.2% to just 2.3% during this period.

Rural and urban poverty rates also experienced significant declines. Rural poverty dropped from 18.4% to 2.8%, while urban poverty went from 10.7% to 1.1%, helping to narrow the rural-urban gap from 7.7 to 1.7 percentage points. The country's five most populous states played a significant role in this reduction, contributing to two-thirds of the overall decline in extreme poverty.

Despite the progress, challenges remain. Youth unemployment stands at 13.3% and 29% among those with tertiary education. Furthermore, self-employment is rising, particularly among rural workers and women, even as gender disparities continue with a significant imbalance in paid employment between men and women.