World Bank says India’s extreme poverty dropped to 5.3%, but experts warn of misleading optimism. Millions still face hunger, joblessness, and systemic inequality.
By Veritas Times Staff | June 7, 2025
A World Bank report has sparked debate across the nation by announcing that India’s extreme poverty has dropped sharply from 27.1% in 2011–12 to just 5.3% in 2022–23. But while these figures appear promising, experts and grassroots voices are questioning whether these numbers truly reflect the lived realities of India’s poorest citizens.
❝270 Million Lifted Out of Poverty — But at What Cost?❞
According to the report, around 269 million Indians have exited “extreme poverty” in the past decade. But the report also defines this threshold as individuals earning more than $2.15 per day (approximately ₹180). Critics argue that merely crossing this minimal benchmark does not mean people are economically secure or living with dignity.
“Escaping extreme poverty by a dollar doesn’t mean escaping daily struggle,” said a Kolkata-based development researcher. “The numbers are being celebrated, but the underlying inequality, joblessness, and inflation continue to crush the poor.”
State-Wise Disparities Raise Red Flags
While the World Bank acknowledges that five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—drove most of the progress, experts warn that this narrative glosses over alarming disparities.
For instance, rural poverty reportedly fell from 18.4% to 2.8% and urban poverty from 10.7% to 1.1%. But this data fails to address the growing urban slums, underemployment, and rural distress visible across India’s landscape.
Government Programs: Success or Surface-Level Fixes?
The report attributes much of the improvement to Direct Benefit Transfers (DBT), Jan Dhan accounts, Ujjwala gas schemes, and health insurance coverage under Ayushman Bharat.
However, ground-level investigations reveal that many of these schemes suffer from inefficiency, corruption, and limited reach.
“World Bank says India’s extreme poverty dropped to 5.3%, but experts warn of misleading optimism. Millions still face hunger, joblessness, and systemic inequality.,” a field worker in Jharkhand told Veritas Times.
Multidimensional Poverty Still Looms Large
Even though India’s Multidimensional Poverty Index (MPI) reportedly fell from 53.8% in 2005–06 to 15.5% in 2022–23, this doesn’t factor in rising food prices, education quality gaps, or inaccessible healthcare in vast rural belts and tribal areas.
Economists warn that this decline may be mathematically real but socially hollow. They point to growing inequality, especially post-pandemic, as a silent crisis that is left unaddressed.
A Word of Caution from Experts
While no one disputes that progress has been made, the celebratory tone of the World Bank’s report has raised concerns of political misuse ahead of elections. It could be used to justify scaling down welfare spending, even as economic distress continues in rural India.
Conclusion: Progress, Yes — But Far from Victory
India’s journey in poverty reduction is notable, but claiming a near-eradication of extreme poverty may risk ignoring millions still trapped in cycles of deprivation. The government may be tempted to turn this report into a political trophy, but the people living just above the poverty line know the truth — they are still one emergency away from destitution.