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India’s Extreme Poverty Declines to 2.3% Over 12 Years, Study Finds
✍️ Business Today
🗓 08 Nov 2026, 09:04 AM
👁 15
A recent research paper co‑authored by economist Raghuram Panagariya reports that India’s share of people living below the extreme poverty line has dropped from 21.9% to 2.3% between 2010 and 2022.
The study, published in a recent paper, uses the World Bank’s extreme poverty line of $1.90 a day to measure the decline in India’s poorest population. It finds that the proportion of Indians living below this threshold fell from 21.9% in 2010 to 2.3% in 2022, a reduction of 19.6 percentage points over 12 years.
This sharp decline follows a trend of gradual poverty reduction that began in the early 2000s, with the country’s extreme poverty rate dropping from 45% in 1990 to 21.9% in 2010. The latest data suggest that the momentum has accelerated in recent years.
Economist Raghuram Panagariya, a co‑author of the paper, attributes the progress to a combination of macroeconomic stability, growth in manufacturing and services, and targeted social welfare schemes. He notes that while the overall poverty rate has fallen, disparities across states and rural-urban divides remain.
The findings underscore the importance of sustained policy focus on inclusive growth and highlight the need for continued investment in education, health, and rural infrastructure to keep the poverty decline on track.
This sharp decline follows a trend of gradual poverty reduction that began in the early 2000s, with the country’s extreme poverty rate dropping from 45% in 1990 to 21.9% in 2010. The latest data suggest that the momentum has accelerated in recent years.
Economist Raghuram Panagariya, a co‑author of the paper, attributes the progress to a combination of macroeconomic stability, growth in manufacturing and services, and targeted social welfare schemes. He notes that while the overall poverty rate has fallen, disparities across states and rural-urban divides remain.
The findings underscore the importance of sustained policy focus on inclusive growth and highlight the need for continued investment in education, health, and rural infrastructure to keep the poverty decline on track.