Consider the following statements regarding India's extreme poverty as per the World Bank's updated estimates:
- India's extreme poverty rate declined from 27.1% in 2011-12 to 5.3% in 2022-23 based on the revised $3 per day poverty line (2021 PPP).
- Under the previous $2.15 per day poverty line (2017 PPP), India's extreme poverty rate in 2022 was 2.3%, down from 16.2% in 2011-12.
- The lower-middle-income country (LMIC) poverty line was revised from $3.65 to $4.20 per day, and under this threshold, India's poverty rate fell from 57.7% to 23.9% between 2011-12 and 2022-23.
Which of the statements given above are correct?
Explanation:
India's extreme poverty fell to 5.3% in 2022-23 from 27.1% in 2011-12, a much sharper decline than in previous decades, the World Bank said, releasing updated data. Introduction - India has recorded a significant decline in extreme poverty over the past decade, according to the latest estimates by the World Bank using an updated threshold of $3 per day in 2021 PPP terms. The new estimates reflect India's resilience and progress in reducing poverty, even after adjusting for inflation and other macroeconomic changes. Revised Global Poverty Thresholds - In 2022-23, the World Bank raised the extreme poverty line from $2.15 per day to $3 per day (in 2021 PPP terms) to better reflect cost-of-living increases across developing nations. This adjustment shifts the global benchmark for poverty measurement, thereby increasing the comparability and relevance of data across time. At this $3/day level, the share of India's population living in extreme poverty is estimated to be 5.3%, a steep fall from 27.1% in 2011-12. In absolute terms, the number of people living in extreme poverty has decreased from 344 million to just over 75 million in this period. India's Progress under Different Poverty Lines - At the $2.15/ day line (previous international standard based on 2017 PPP), India's extreme poverty rate stood at 2.3% in 2022, compared to 16.2% in 2011-12. Under the lower-middle-income country (LMIC) poverty line, now revised to $4.20/day (up from $3.65/day), India's poverty rate fell from 57.7% to 23.9% in the same period. Interestingly, while the nominal poverty line has been raised, the new threshold of $4.20/day is effectively lower for India compared to an inflation-adjusted $4.40/day line, thus explaining the decline in poverty rate even under the revised standard.
Explanation:
India's extreme poverty fell to 5.3% in 2022-23 from 27.1% in 2011-12, a much sharper decline than in previous decades, the World Bank said, releasing updated data. Introduction - India has recorded a significant decline in extreme poverty over the past decade, according to the latest estimates by the World Bank using an updated threshold of $3 per day in 2021 PPP terms. The new estimates reflect India's resilience and progress in reducing poverty, even after adjusting for inflation and other macroeconomic changes. Revised Global Poverty Thresholds - In 2022-23, the World Bank raised the extreme poverty line from $2.15 per day to $3 per day (in 2021 PPP terms) to better reflect cost-of-living increases across developing nations. This adjustment shifts the global benchmark for poverty measurement, thereby increasing the comparability and relevance of data across time. At this $3/day level, the share of India's population living in extreme poverty is estimated to be 5.3%, a steep fall from 27.1% in 2011-12. In absolute terms, the number of people living in extreme poverty has decreased from 344 million to just over 75 million in this period. India's Progress under Different Poverty Lines - At the $2.15/ day line (previous international standard based on 2017 PPP), India's extreme poverty rate stood at 2.3% in 2022, compared to 16.2% in 2011-12. Under the lower-middle-income country (LMIC) poverty line, now revised to $4.20/day (up from $3.65/day), India's poverty rate fell from 57.7% to 23.9% in the same period. Interestingly, while the nominal poverty line has been raised, the new threshold of $4.20/day is effectively lower for India compared to an inflation-adjusted $4.40/day line, thus explaining the decline in poverty rate even under the revised standard.
