The World Bank: Extremist poverty in India decreases to 2.3 %, and the growth of employment exceeds the population of working age

India has recorded a sharp decrease in poverty over the past decade, and the World Bank stated in its latest report, “Poverty and Poverty”, indicating that extremist poverty decreased to 2.3 % in 2022-23, a decrease from 16.2 % in 2011-12. This represents a major shift, as 171 million people were raised over the international poverty line of $ 2.15 a day.

At the same time, the poverty measured by the lower -medium income line of $ 3.65 per day decreased from 61.8 % to 28.1 %, which led to 378 million people out of poverty. India’s move to a country with a lower intermediate income was accompanied by major gains in both rural and urban areas.

The report has emerged that 171 million people were raised from extreme poverty, and 378 million people moved over the wider poverty line during this period.

Urban rural gap is narrow

The rural urban gap has also narrowed. The extreme poverty in rural areas decreased from 18.4 % to 2.8 %, while urban poverty decreased from 10.7 % to 1.1 %, which led to the narrowing of the gap in rural areas between the urban areas from 7.7 degrees Celsius to only 1.7. The wider poverty by a $ 3.65 line shows a similar trend, as rural poverty decreased from 69 % to 32.5 %, and urban poverty from 43.5 % to 17.2 %.

Five major states-Tar Bradesh, Maharashtra, Bihar, Western Bengal, and Madi Pradesh-65 % of the developed poor in India in 2011-12 were responsible for two-thirds of the national decline in extreme poverty. As of 2022-23, these states still represent 54 % of the very poor population of India.

employment

One of the most important developments in the report is the growth of employment, which exceeds the expansion of the population of work in India since 2021-22. Urban unemployment decreased to 6.6 % in Q1 FY24/25, which is the lowest level since 2017-18. Female employment also showed encouraging signs, especially in rural agriculture, even with the continued gender differences – with 234 million men more than women in paid work.

Despite these gains, challenges continue. The youth unemployment rate is 13.3 %, and increased sharply to 29 % among young educated youth. Official employment is still limited, with only 23 % of unimportant cultivated jobs. Unofficial continues to control the agricultural sector, while free employment is increasing, especially among rural workers and women.

Despite the increase in participation in the female workforce to 31 %, gender differences remain flagrant, with 234 million men more than women in paid work.

Poverty

India has also made great steps in reducing multidimensional poverty, which takes into account access to education, health and basic services. MPM poverty (MPM) decreased to 15.5 % in 2022-23, decreased from 53.8 % in 2005-06. However, 29.9 % of the population lacks access to limited sewage, and 13.8 % of adults have not completed primary education.

Other indicators include:

Only 1 % of the population lacks access to electricity

11.2 % lack the improvement of drinking water sources

14.9 % poverty rate among those who suffer from higher education for 35.1 % among those who do not have an official education

Equality remains

On inequality in consumption, a slightly genetic index improved from 28.8 to 25.5 between 2011-12 and 2022-23. However, income inequality remains severe. The world’s inequality database data shows a genetic index in India that rises from 52 in 2004 to 62 in 2023. In 2023-24, top 10 % at 13 times more than 10 %.

Reformers to influence future estimates

The World Bank warns that poverty estimates may change with updated poverty lines. If the extremist poverty line is reviewed to $ 3.00 a day and the lower intermediate income line to $ 4.20 a day, then poverty rates in India 2022-23 will be modified to 5.3 % and 23.9 %, respectively.

While these gains are noticeable, the World Bank emphasizes the importance of continuous improvements in education, sanitation and official employment to maintain poverty reduction.

The World Bank also indicated a decrease in multidimensional poverty, with its internal management, which is 15.5 % in 2022-23, a decrease from 53.8 % in 2005-2006. These measures are not only for income but also for deprivation in education, sanitation, drinking water and access to electricity.