India has seen a sharp decline in extreme poverty from 27.1% in 2011 to 5.3% in 2022 under the World Bank’s updated poverty line of $3.00/day (2021 PPP).
- Global poverty lines:
- Poverty line is typically a monetary threshold below which a person's minimum basic needs cannot be met.
- World Bank has updated poverty line to $3.00 per person per day, which replaces the previous $2.15 poverty line based on 2017 PPPs.
- The updated poverty line aims to better reflect today’s global prices and cost-of-living standards.
- For lower-middle-income economies, the poverty line is currently set at $4.20 per person per day, and for upper-middle-income economies, it is $8.30.
- Rural-Urban Divide in Poverty: Rural poverty fell from 18.4% (2011–12) to 2.8% (2022–23) while Urban poverty declined from 10.7% (2011-12) to 1.1% (2022-23) in India.
- Multidimensional Poverty Index (MPI): MPI dropped from 53.8 percent in 2005-06 to 16.4 percent in 2019-21, and further down to 15.5 percent in 2022-23 in India.
- The index comprises six indicators, namely consumption or income, educational attainment, educational enrolment, drinking water, sanitation, and electricity.
Initiatives that led to decline in poverty:
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