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India’s Extreme Poverty Rate Drops to ‘Negligible’ Levels, New 2025 Reports Reveal

News

24 April 2025

In a landmark achievement, new research indicates that India’s extreme poverty rate has plummeted to below 5% in 2025— down from over 15% a decade ago. This dramatic decline, highlighted in reports by the World Bank and Indian think tanks— underscores the success of targeted welfare programs and sustainable development initiatives.

How Did India Do It?

Rural Employment Schemes: Programs like MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) provided 100 days of paid work annually to 70 million households, lifting millions out of poverty while promoting eco-friendly infrastructure projects.[1]
Sustainable Agriculture: Government subsidies for organic farming and drip irrigation helped smallholder farmers increase yields and incomes. States like Maharashtra and Uttar Pradesh saw a 40% rise in farm profits since 2020.
Green Energy Jobs: The renewable energy sector, now employing 1.2 million people, created opportunities in solar panel manufacturing and wind farm maintenance, particularly in rural areas.

Urban Progress:
Cities like Mumbai and Bengaluru integrated sustainability into poverty alleviation. For example:

Slum Redevelopment: Eco-friendly housing projects with solar roofs and rainwater harvesting systems replaced informal settlements.[2]
Skill Development: Green job training centers trained over 500,000 youths in sectors like waste management and EV repair.

Challenges Remain:
Despite progress, inequality persists. The richest 10% still control 60% of wealth, and climate change threatens to reverse gains in vulnerable regions like coastal Odisha.

Why It Matters
India’s success offers a blueprint for balancing economic growth with sustainability. As Ramesh Chand, NITI Aayog member, notes: “Poverty reduction isn’t just about money—it’s about access to clean energy, healthcare and climate-resilient livelihoods.”

[1] https://openknowledge.worldbank.org/entities/publication/2c93123f-dbbc-58fa-b70f-1e247ecab589

[2] https://www.niti.gov.in/sites/default/files/2024-11/green%20and%20sustainable%20growth.pdf