Extreme poverty in India down to 5.3% from 27.1%: World Bank

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India’s utmost poorness complaint declined sharply to 5.3 per cent implicit a decennary from 27.1 per cent successful 2011-12 adjacent arsenic the World Bank revised upwards its threshold poorness enactment to USD 3 per day.

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Given India’s ostentation complaint betwixt 2017 and 2021, a revised utmost poorness enactment of USD 3 would represent a 15 per cent higher threshold than USD 2.15 expressed successful 2021 prices and effect successful a 5.3 per cent poorness complaint successful 2022-23, the World Bank said successful a report.

In India, the study said, 54,695,832 radical lived connected little than USD 3 per time successful 2024. Thus, the poorness complaint astatine USD 3 per time (2021 PPP—percentage population) is 5.44 per cent successful 2024.

The utmost poorness complaint decreased from 16.2 to 2.3 per cent betwixt 2011-12 and 2022-23, portion the poorness complaint astatine the little mediate income state (LMIC) enactment declined by 33.7 percent points, it said.

Free and subsidised nutrient transfers supported poorness reduction, and the rural-urban poorness spread narrowed. The 5 astir populous states relationship for 54 per cent of the highly poor, it said.

With respect to economy, the study said, existent GDP of India was astir 5 per cent beneath the pre-pandemic inclination level arsenic of FY25.

Growth should gradually converge backmost to imaginable implicit 2027-28 assuming the existent planetary uncertainties are resolved successful an orderly fashion, it said.

“The outlook, however, is taxable to important downside risks, arsenic argumentation shifts whitethorn proceed to unfold globally. Elevated commercialized tensions would dampen request for India’s exports and further hold the betterment successful investment,” it said.

The existent relationship shortage is expected to mean astir 1.2 per cent of GDP implicit FY26-28 and stay adequately financed by superior inflows, it said, adding that overseas speech reserves are projected to stay unchangeable astir 16 per cent of GDP.

India has lifted 171 cardinal radical from utmost poorness successful the decennary betwixt 2011-12 and 2022-23, the World Bank said.

“Over the past decade, India has importantly reduced poverty. Extreme poorness (living connected little than USD 2.15 per day) fell from 16.2 per cent successful 2011-12 to 2.3 per cent successful 2022-23, lifting 171 cardinal radical supra this line, the World Bank had said successful its ‘Poverty & Equity Brief’ connected India successful April.

The agrarian utmost poorness dropped from 18.4 per cent to 2.8 per cent, and municipality from 10.7 per cent to 1.1 per cent, narrowing the rural-urban spread from 7.7 to 1.7 percent points a 16 per cent yearly decline, it had said.

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