India's poverty below $4.20-a-day line fell from 57.7% to 16.1%
GS3Economy · S&T · Environment · Security· Employment & inclusive growth· Prelims + Mains·
Why in news
The World Bank reported a significant decline in the share of Indians living below the $4.20-a-day poverty line, highlighting a shift in India's poverty dynamics.
Background
The share of people below the $4.20-a-day poverty line fell from 57.7% in 2011-12 to 16.1% in 2023-24. The World Bank projects this figure to reach 12.1% by 2028.
Facts for Prelims
- Report / IndexWorld Bank's 'Poverty and Equity Brief: India' (October 2026) reported poverty line data.
- FactIndia's worker-population ratio increased from 46.8% in 2017-18 to 58.2% in 2023-24.
- FactInflation-adjusted daily earnings for regular salaried workers remained unchanged at Rs 381 between 2017-18 and 2023-24.
- FactCasual workers' daily earnings rose from Rs 189 to Rs 227 between 2017-18 and 2023-24.
- BodyPeriodic Labour Force Survey (PLFS) covers the period from July to June.
For Mains
Q. Discuss the complexities of poverty reduction in India where rising employment figures do not consistently correlate with uniform real wage growth across different worker categories.
Dimensions to cover in your answer
- Wage stagnation: Stagnant inflation-adjusted earnings for regular salaried workers despite increased worker-population ratio.
- Labor heterogeneity: Divergent wage trends between self-employed (slight slip) and casual workers (increase).
- Household dynamics: Poverty reduction driven by increased household members entering the workforce vs. individual wage growth.
Keywords: poverty alleviation · worker-population ratio · real wages · labor force dynamics · income inequality
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