Syllabus

GS 2: Issues relating to poverty and hunger.

Context: 

According to the World Bank’s Spring 2025 Poverty and Equity Brief, the nation has lifted 171 million people out of extreme poverty over the past decade.

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• India's extreme poverty rate dropped significantly from 27.1% in 2011-12 to 5.3% in 2022-23.
• This sharp decline occurred even after the World Bank revised the global extreme poverty line upward to $3/day (from $2.15/day at 2021 prices).
• The new $3 threshold is 15% higher than the previous $2.15 benchmark, considering India's inflation between 2017 and 2021.

Current Poverty Statistics (2024)

• As of 2024, 54.7 million people in India live on less than $3/day.
• At the $3/day poverty line (2021 PPP), the poverty rate is 5.44%.

Under the previous extreme poverty benchmark:

• Extreme poverty fell from 16.2% (2011-12) to 2.3% (2022-23).
• 171 million people were lifted out of extreme poverty during this decade.

Rural vs Urban Poverty Trends

• Rural extreme poverty declined from 18.4% to 2.8%.
• Urban extreme poverty dropped from 10.7% to 1.1%.
• The rural-urban gap narrowed from 7.7 to 1.7 percentage points, marking a 16% annual decline.

Economic Outlook

• India’s real GDP in FY25 is projected to be around 5% below the pre-pandemic trend.
• Growth is expected to gradually return to potential by 2027-28, provided global uncertainties ease in an orderly manner.

However, the economic outlook faces downside risks:

• Policy shifts globally may create unpredictability.
• Elevated trade tensions could reduce export demand.
• Recovery in investment may be delayed.

Poverty

• When a person is unable to get the minimum necessities of life this situation is known as poverty.
• Classification of Poverty- Poverty can be divided into two types Absolute Poverty and Relative Poverty 
• Absolute Poverty: - It is the complete lack of the means necessary to meet basic personal needs, such as food, clothing and shelter. 
• Relative Poverty: - It is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live. Relative poverty is considered the easiest way to measure the level of poverty in an individual country

Key Commissions & Their Methodologies

• Tendulkar Committee (2009): Recommended nutritional benchmarks, inclusion of health/education in consumption basket, uniform rural–urban poverty line.

• Placed daily poverty thresholds at approx. ₹27 (rural) and ₹33 (urban) in 2011–12 rupees. 

• Rangarajan Committee (2014): Suggested state-specific poverty lines and raised thresholds: ₹32/day rural, ₹47/day urban (June 2014 prices). 

• Nationally, NITI Aayog currently relies on these frameworks using NSSO data.

India’s Key Initiative to Combat Poverty  

• Jal Jeevan Mission (JJM): Har Ghar Jal: 15.59 crore rural households now have tap water connections and 100% Har Ghar Jal in 8 states and 3 UTs.
• Pradhan Mantri Awas Yojana: Urban: Nearly 4 crore houses completed; 92.35 lakh delivered under this scheme, with over 90 lakh owned by women.
• Swachh Bharat Mission: 12 crore household toilets built and 5.64 lakh villages declared ODF Plus.
• Ayushman Bharat: It covers over 55 crore people, and its benefits extended to all citizens 70+ under Ayushman Vay Vandana.
• Viksit Bharat Sankalp Yatra: It reached 2.6 lakh gram panchayats, 4,000 ULBs to ensure saturation of welfare schemes.

UPSC Mains Practice Question

Q: Despite economic challenges and global uncertainties, India has made substantial progress in reducing extreme poverty. Discuss the trends in poverty reduction in India over the past decade. Highlight the role of key government initiatives in this process.