Extreme poverty in India, measured by those who live on less than $3 per day in 2021 Purchasing Power Parity terms, fell to 2.6% in 2023, according to the World Bank’s latest Poverty and Equity Brief. This figure indicates a significant decline compared to previous years, though wage disparity remains pronounced across the country.
The extreme poverty rate in 2023 is more than 10 times lower than the 27.1% recorded in 2011. In the 2022-23 period, the extreme poverty rate stood at 5.3%, effectively halving over the subsequent period alongside a decline in consumption inequality.
Along with the poverty findings, the World Bank report highlighted that median earnings for the top 10% of workers were about 13 times greater than for the bottom 10%. It also cautioned that poverty is becoming increasingly concentrated geographically, with about 57% of India’s poor living in a belt stretching from Uttar Pradesh to West Bengal.
Key Points Of The World Bank Poverty Report
- Extreme poverty in India fell to 2.6% in 2023 from 27.1% in 2011.
- The Gini index measuring consumption inequality declined to 23.0 in 2023, down from 28.8 in 2011-12 and 25.5 in 2022-23.
- Wage disparity remains pronounced, with the top 10% of workers earning 13 times more than the bottom 10%.
- About 57% of India’s poor reside in a geographic belt stretching from Uttar Pradesh to West Bengal.
Consumption Inequality And Gini Index Trends
Along with the reduction in poverty, consumption inequality in India has also declined over the past decade. The Gini index, which ranges from 0 to 100 with higher numbers indicating greater inequality, was recorded at 23.0 in 2023. This is a drop from 28.8 in 2011-12 and 25.5 in 2022-23.
Geographical Concentration Of Poverty
Despite the overall drop in extreme poverty rates, the World Bank brief pointed out a growing geographical concentration. Approximately 57% of the nation’s impoverished population resides within a specific regional belt extending from Uttar Pradesh to West Bengal.
Frequently Asked Questions
What was India’s extreme poverty rate in 2023 according to the World Bank?
According to the World Bank’s latest Poverty and Equity Brief, India’s extreme poverty rate fell to 2.6% in 2023, based on those living on less than $3 per day in 2021 Purchasing Power Parity terms.
How does the 2023 extreme poverty rate compare to 2011 figures?
The extreme poverty rate of 2.6% in 2023 is more than 10 times lower than the 27.1% recorded in 2011, and marks a halving from the 5.3% rate reported in the 2022-23 period.
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