August 6, 2025 4:11 pm

269 Million Indians Cross Extreme Poverty Threshold

CURRENT AFFAIRS: India Poverty Decline 2025, World Bank $3 Poverty Line, Multidimensional Poverty India, PM Awas Yojana Benefits, Ayushman Bharat Scheme, India Rural Urban Poverty 2023, Updated Poverty Benchmark 2021 PPP, PM Ujjwala Yojana Impact, PM Jan Dhan Yojana Financial Access

269 Million Indians Cross Extreme Poverty Threshold

A major fall in poverty levels

269 Million Indians Cross Extreme Poverty Threshold: Between 2011-12 and 2022-23, around 269 million Indians moved above the extreme poverty mark. According to the World Bank’s revised poverty threshold of $3 per day, only 5.3% of Indians were considered extremely poor by 2022, down from 27.1% in 2011. This progress shows how much living conditions have improved over the past decade.

Such a change means that many families now have better access to food, clean water, electricity, and education. It also highlights the impact of focused government schemes and economic reforms.

What the new poverty line means?

The poverty line is used to decide who is unable to afford basic necessities like food, housing, and healthcare. The World Bank updated this line to $3 per person per day in 2021 PPP terms. Earlier, the standard was $2.15 per day.

The change accounts for inflation and rising costs globally. For reference, countries like India—classified as lower-middle-income economies—also consider $4.20 per day as another important benchmark, while $8.30 is used for upper-middle-income nations.

Difference between rural and urban areas

India’s progress in poverty reduction is visible across both city and village populations:

  • In rural regions, poverty declined from 18.4% to 2.8%
  • In urban areas, it dropped from 10.7% to 1.1%

This shows that development is not just happening in cities. Villages too have gained from better infrastructure, financial services, and government outreach.

Improvement in multidimensional poverty

The Multidimensional Poverty Index (MPI) looks beyond income. It measures poverty based on six key indicators, including access to education, health, electricity, clean water, and sanitation.

India’s MPI stood at 53.8% in 2005-06. It dropped to 16.4% by 2019-21 and then fell further to 15.5% in 2022-23. That’s a big shift toward overall well-being.

Key schemes that supported this change

Multiple social programs helped India achieve these numbers:

  • PM Awas Yojana gave poor families solid homes with basic utilities
  • PM Ujjwala Yojana provided clean LPG fuel, especially helping rural women
  • PM Jan Dhan Yojana increased access to banking, helping people save and borrow
  • Ayushman Bharat offered free hospital care, reducing out-of-pocket health expenses

Together, these efforts improved quality of life and financial security, particularly for the most vulnerable.

Static Usthadian Current Affairs Table

269 Million Indians Cross Extreme Poverty Threshold:

Topic Key Facts
People Lifted From Poverty 269 million (2011-12 to 2022-23)
New World Bank Poverty Line $3/day (2021 PPP)
Rural Poverty (2022-23) 2.8%, down from 18.4%
Urban Poverty (2022-23) 1.1%, down from 10.7%
Multidimensional Poverty Rate 15.5% in 2022-23, was 53.8% in 2005-06
PM Awas Yojana Provided pucca homes to poor households
PM Ujjwala Yojana Enabled LPG access for rural and low-income groups
PM Jan Dhan Yojana Created 50+ crore bank accounts for financial inclusion
Ayushman Bharat Scheme Covers up to ₹5 lakh in hospital bills per family per year
Static GK Fact Tendulkar Committee (2009) first defined modern poverty lines in India

 

269 Million Indians Cross Extreme Poverty Threshold
  1. 269 million Indians moved out of extreme poverty between 2011-12 and 2022-23.
  2. The extreme poverty rate in India dropped from 1% (2011) to 5.3% (2022).
  3. The World Bank updated its poverty line to $3 per day (2021 PPP).
  4. Earlier, the global poverty line was $2.15 per day (2017 PPP).
  5. Rural poverty reduced from 4% to 2.8% by 2022-23.
  6. Urban poverty fell from 7% to 1.1% during the same period.
  7. The decline shows improvement in access to basic services like food, electricity, and clean water.
  8. India’s Multidimensional Poverty Index (MPI) dropped to 5% in 2022-23.
  9. MPI was at a high of 8% in 2005-06, indicating sharp improvement.
  10. The MPI considers education, sanitation, water, health, and housing access.
  11. PM Awas Yojana helped build pucca homes with essential services.
  12. PM Ujjwala Yojana provided LPG connections to poor households.
  13. PM Jan Dhan Yojana improved financial inclusion with 50+ crore accounts.
  14. Ayushman Bharat offered free hospitalization up to ₹5 lakh per family.
  15. These schemes targeted health, housing, cooking fuel, and finance
  16. Poverty reduction occurred in both urban and rural areas, indicating balanced development.
  17. India now edges closer to the $4.20/day poverty threshold for lower-middle-income countries.
  18. The Tendulkar Committee (2009) laid the groundwork for modern poverty assessments.
  19. Economic reforms and welfare schemes worked in synergy to lift millions out of poverty.
  20. India’s poverty success story is now recognized globally as a model for inclusive development.

Q1. According to World Bank's 2021 PPP revision, what is the new extreme poverty threshold?


Q2. By 2022, what percentage of Indians were considered extremely poor under the new poverty line?


Q3. Which scheme is primarily responsible for providing LPG fuel to rural and low-income households?


Q4. What was India’s Multidimensional Poverty Index (MPI) percentage in 2022-23?


Q5. Which committee is associated with defining modern poverty lines in India?


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