**Executive Summary**
This document presents the Ministry of Finance's response to a parliamentary question regarding the World Bank's revision of the International Poverty Line (IPL) to USD 3.00 per day (2021 PPP). It details the impact of this revision on India's poverty estimates and outlines the government's long-term policy measures to promote self-reliance and reduce dependency on subsidies. The question was scheduled to be answered on December 8, 2025.
**Key Points / Main Content**
* **International Poverty Line Revision:**
* The government acknowledges the World Bank's revision of the IPL from USD 2.15 to USD 3.00 per day (2021 PPP).
* **Impact on India's Poverty Estimates:**
* Using the USD 3.00 IPL, India's extreme poverty rate decreased to 5.25% in 2022-23 from 27.12% in 2011-12.
* The number of people living in extreme poverty fell from 34.4 crore to 7.5 crore during this period.
* Multidimensional poverty in India declined from 29.17% in 2013-14 to 11.28% in 2022-23.
* Approximately 24.8 crore people have escaped poverty.
* **Influence of Indian Data on Global Poverty Calculations:**
* The World Bank noted that India's revamped consumption survey data has significantly contributed to the revision of global poverty calculations.
* **Government Policy Measures:**
* The primary policy objective is the development of all sections of the population, focused on inclusive growth.
* The government is implementing targeted programs to promote self-reliance and provide social security, including Mahatma Gandhi National Rural Employment Guarantee Scheme, Deendayal Antyodaya Yojana, and PM-KISAN.
* Implemented programs: Jal Jeevan Mission, Swachh Bharat Abhiyan, PM Ujjwala Yojana, PM Saubhagya Yojana, Ayushman Bharat, Pradhan Mantri Jan-Dhan Yojana
* A multi-pronged approach addresses economic inequality, prioritising employment generation.
* Unemployment rate for individuals aged 15 and above has decreased from 5.8% in 2018-19 to 3.2% in 2023-24.
* Implemented programs to expand job opportunities.
* Government is implementing the Skill India Mission (SIM) and PM Vishwakarma scheme.
**Impact Analysis**
**Citizens of India**
* **Impact:** Citizens, particularly those in vulnerable sections and those living in poverty, will be impacted by the government’s policy measures and programs aimed at poverty reduction, self-reliance, and improved access to basic amenities.
* **Action Required:** Citizens should be aware of the various government schemes and programs available to them and take advantage of opportunities for skill development, employment, and social security.
**Government of India (Ministry of Finance, other ministries)**
* **Impact:** The Ministry of Finance is responsible for monitoring and responding to changes in international poverty lines and their impact on India. Other ministries are responsible for implementing and managing programs aimed at poverty reduction and economic development.
* **Action Required:** The government must continue to implement and refine its policies and programs to address poverty, promote self-reliance, and improve the quality of life for all citizens. They must also monitor the impact of these policies and programs and make adjustments as needed.
**World Bank**
* **Impact:** The World Bank's poverty line revisions directly impact the poverty estimates and analysis conducted by the Indian government. Additionally, India's updated consumption data influences the World Bank's global poverty calculations.
* **Action Required:** The World Bank should continue to collaborate with the Indian government to refine poverty measurement methodologies and ensure the accuracy of global poverty estimates.
Key Entities Referenced
World Bank: International financial institution whose revision of the International Poverty Line (IPL) is the primary subject of the question.
International Poverty Line (IPL): The poverty threshold established by the World Bank; revisions to it are the core topic.
Ministry of Finance: The primary government body responding to the question about the poverty line.
National Multidimensional Poverty Index (MPI): A comprehensive index developed by the Government of India to measure poverty.
NITI Aayog: Indian public policy think tank whose discussion paper on multidimensional poverty is cited.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1372
TO BE ANSWERED ON 08.12.2025
REVISION OF INTERNATIONAL POVERTY LINE
1372. SHRI RAO RAJENDRA SINGH
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has taken into account the World Bank's revision of the International
Poverty Line from USD 2.15 to USD 3.00 per day, 2021 Purchasing Power Parity (PPP) and its impact
on the country poverty estimates, if so, the details thereof;
(b) the extent to which India's updated consumption data influenced the revised global poverty
calculations; and
(c) whether the Government proposes to introduce long-term policy measures to promote self-reliance
and reduce dependency on subsidies for people still living in extreme poverty, if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): Yes, Sir. The Government is aware of the World Bank’s revision of the International Poverty Line
(IPL) from USD 2.15 to USD 3.00 per day (2021 Purchasing Power Parity (PPP)). According to the
USD 3.00 per day international poverty line (2021 PPP), India's extreme poverty rate decreased to 5.25
per cent in 2022-23 from 27.12 per cent in 2011-12. The number of people living in extreme poverty fell
from 34.4 crore to 7.5 crore over this period.
The Government of India has developed a comprehensive index known as the National
Multidimensional Poverty Index (MPI) to measure poverty. According to the NITI Aayog discussion
paper, ‘Multidimensional Poverty in India since 2005- 06’, multidimensional poverty in India is
estimated to have declined from 29.17 per cent in 2013-14 to 11.28 per cent in 2022-23, implying that
24.8 crore people have escaped poverty during this period.
(b): According to the World Bank, the increase in international poverty reflects changes in prices across
the world and improvements in country-level data. In this context, the World Bank has noted that India’s
revamped consumption survey data has significantly contributed to the revision of global poverty
calculations.(c): The primary policy objective of the Government is the development of all sections of the population.
Its focus on inclusive growth is reflected in its commitment to “Sabka Saath, Sabka Vikas” to reduce
poverty and inequality, provide social security, income generation and livelihood options, and improve
the quality of life of the vulnerable sections of the population in the country.
With these objectives, the Government is implementing a number of targeted programmes to promote
self-reliance and to provide social security such as Mahatma Gandhi National Rural Employment
Guarantee Scheme, Deendayal Antyodaya Yojana - National Rural Livelihoods Mission, National Social
Assistance Programme, Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Pradhan Mantri Suraksha
Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra
Yojana, Stand Up India Scheme, Umbrella Programmes for Development of Minorities and Other
Vulnerable Groups; Rashtriya Krishi Vikas Yojna; fund transfer under PM-KISAN, PM Fasal Bima
Yojana claim payments; fertiliser subsidies, interest subvention for dairy cooperatives; Agri-
Infrastructure Fund for farm gate infrastructure, etc. Further, the Government has implemented various
programmes, including Jal Jeevan Mission, Swachh Bharat Abhiyan, PM Ujjwala Yojana, PM
Saubhagya Yojana, Ayushman Bharat, Pradhan Mantri Jan-Dhan Yojana, etc., to bring about overall
improvement in the quality of life of the people through universal access to basic amenities.
The Government has a multi-pronged approach that addresses economic inequality, promotes social
mobility, and ensures fair economic participation. It has been prioritising employment generation and
improving employability. The annual periodic labour force survey (PLFS) report shows that labour
markets have recovered beyond pre-COVID levels in both urban and rural areas. The unemployment
rate for individuals aged 15 and above has decreased from 5.8 per cent in 2018-19 to 3.2 per cent in
2023-24.
Various schemes and programs have been implemented to expand job opportunities. Besides, the focus
on growth-promoting measures like robust capital expenditure, continuing improvements in logistic
facilities, urban development, promotion of MSMEs, agriculture and manufacturing are promoting
overall economic growth, thereby improving employment and purchasing power of the citizens.
The Government is also implementing the Skill India Mission (SIM) to provide skill, re-skill, and up-
skill training through an extensive network of skill development centres, schools, colleges, and institutes.
The SIM aims at enabling the youth of India to get future-ready, equipped with industry-relevant skills.
Besides, the PM Vishwakarma scheme was launched in September 2023 to provide end-to-end support
to artisans and craftspeople of 18 trades who work with their hands and tools.
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