India’s Significant Progress in Reducing Extreme Poverty Over a Decade

In recent years, India has made significant strides in reducing extreme poverty, according to the World Bank’s Spring 2025 Poverty and Equity Report. Over the past decade, India successfully lifted over 17.1 crore people out of extreme poverty. This achievement is notable as it marks the first time a single country has achieved this goal within a decade, demonstrating remarkable progress in addressing one of the most pressing issues facing the world.

Rural Areas: The Dilemma and Progress

In rural areas, extreme poverty remained a significant challenge for India, particularly in the state of Uttar Pradesh. According to the report, rural areas had 2/3 of the overall decline in extreme poverty, with rural poverty dropping from 18.4% in 2011–2012 to 2.8% in 2022–2023. This drastic reduction underscores the progress India has made in addressing the root causes of rural poverty.

Urban areas also saw a notable improvement, with urban poverty reducing from 10.7% in 2021–2022 to 1.1% in 2022–2023. While this still stands at 1%, it represents a significant leap forward compared to rural regions.

Urban Achievements: Job Creation and Self-Employment

Urban areas have seen positive trends beyond reducing poverty, with job creation emerging as a key driver of progress. For instance, rural workers gained more jobs after 2021–2022, contributing to economic participation. Women’s self-employment, particularly in rural areas, also increased, further enhancing the economy and reducing poverty.

broader Implications: Job Creation and Social Inclusion

The achievements in extreme poverty reduction reflect broader trends of job creation, which have been a cornerstone of India’s economic recovery. The rise in employment growth and the expansion of self-employment programs signal stronger economic resilience and social inclusion. These efforts are critical steps toward achieving sustainable development and equitable policies.

Conclusion: A Path to Inclusive Growth

India’s progress in reducing extreme poverty over a decade highlights the potential for inclusive growth and sustainable development. By addressing one of the most pressing global issues, India is contributing not only to its own economic recovery but also to broader social equity. The journey forward remains challenging, but the achievements so far are significant and indicative of continued efforts to build a more equitable future.

As we look ahead, it is clear that India’s path towards reducing extreme poverty will require continued focus on policies that foster job creation, self-employment, and social inclusion. By 2030, with these trends continuing, India has the potential to achieve global aspirations for sustainable development and inclusive growth.