Business News: The World Bank’s Poverty and Equity Brief lauded India’s remarkable achievement in slashing extreme poverty from 27.1% in 2011-12 to 5.3% in 2022-23, lifting over 26 crore people out of destitution in a decade.
The report credits India’s 8% average economic growth post-COVID and targeted welfare policies for this feat. Prime Minister Narendra Modi hailed the progress as a testament to inclusive development.
Drivers of Poverty Reduction
The World Bank attributes India’s poverty decline to sustained economic growth and government initiatives like the Mahatma Gandhi National Rural Employment Guarantee Act, PM Awas Yojana, and Ayushman Bharat. These programs provided jobs, housing, and healthcare, boosting rural incomes by 7% annually, per the report. Digital infrastructure, including 1.2 billion Aadhaar-linked bank accounts, enabled direct benefit transfers, reducing leakages. The report highlights a 16% annual decline in the rural-urban poverty divide, with states like Uttar Pradesh and Bihar showing significant gains. However, @pradip103
on X notes that low wages and informal jobs persist, questioning the sustainability of gains. India’s focus on manufacturing and services, coupled with a 5% unemployment drop, has driven upward mobility, though challenges like skill gaps remain.
Debates and Future Challenges
While the World Bank’s findings have sparked national pride, the methodology faces scrutiny. The $3 daily poverty line, equivalent to Rs 5,200 monthly for a family of four, is deemed inadequate by critics.
citing a $3.65 line showing 23.9% poverty. The report acknowledges data gaps, relying on consumption surveys up to 2022-23, which may miss recent inflation impacts. Modi’s government, via @PMOIndia
on X, emphasized job creation and women’s empowerment, but opposition voices argue for higher social spending. The report warns of climate risks and urban overcrowding as future hurdles, with 60% of new jobs needed in cities by 2030. India’s G7 Summit participation, as invited by Canada’s Mark Carney, offers a platform to showcase its progress, but addressing inequality and raising the poverty line will be critical to sustaining this trajectory,
