News Desk
NEW DELHI — Over the past 15 years, India has achieved a staggering reduction in poverty, lifting 415 million people out of multidimensional deprivation and slashing its poverty rate from 55.1 percent in 2005-06 to 16.4 percent in 2019-21, according to a recent report by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
This monumental progress, driven by a blend of innovative skills programs, sustainable development initiatives, and expanded access to essential services, has positioned India as a global exemplar for poverty alleviation. The scale of this transformation, detailed in the Multidimensional Poverty Index (MPI), underscores the potential for large-scale, systemic change even in a nation as vast and complex as India.
The MPI, which measures poverty beyond income by assessing deprivations in health, education, and living standards, paints a vivid picture of India’s progress. In 2005-06, more than half of India’s population faced multidimensional poverty, grappling with inadequate access to clean water, sanitation, education, healthcare, and reliable energy. By 2019-21, that figure had plummeted, with 415 million fewer people living in such conditions.
The report highlights India’s ability to address multiple facets of poverty simultaneously, a feat that has drawn praise from global development experts. “India’s achievement is nothing short of historic,” said Shoko Noda, the UNDP resident representative in India. “The speed and scale of this reduction demonstrate what’s possible when policies are aligned to empower communities, prioritize human development, and embrace sustainability. It’s a blueprint for other nations.”
Central to India’s success has been a series of targeted government programs designed to address the root causes of poverty. The National Rural Livelihoods Mission (NRLM), launched in 2011, has been a cornerstone of this effort. By providing microfinance, vocational training, and market linkages, the program has empowered millions of women in rural areas to start small businesses and gain financial independence.
Over 80 million households have been mobilized into self-help groups under the NRLM, creating a ripple effect that has lifted entire communities. Women like Sunita Devi, a 34-year-old from Bihar, exemplify this transformation. Once reliant on sporadic daily wages, she now runs a small tailoring business, employing three others, thanks to training and a microloan from the program. Sustainability initiatives have also played a critical role.
India’s push for renewable energy, particularly solar power, has brought electricity to remote villages, enabling children to study after dark and small businesses to operate more efficiently. The Pradhan Mantri Ujjwala Yojana, a flagship scheme, has provided over 90 million households with access to clean cooking fuel, reducing health risks from traditional biomass stoves and freeing up time for women to pursue education or income-generating activities. Meanwhile, the Swachh Bharat Mission, a nationwide sanitation campaign, has built over 100 million toilets, drastically improving hygiene and reducing waterborne diseases, a key factor in multidimensional poverty.
Education and healthcare reforms have further bolstered India’s efforts. The Right to Education Act of 2009, which mandates free and compulsory education for children aged 6 to 14, has increased school enrollment, particularly among girls. Programs like the Mid-Day Meal Scheme have incentivized attendance by providing free lunches, addressing both hunger and education.
In healthcare, the Ayushman Bharat program, launched in 2018, has offered free medical coverage to over 500 million people, reducing the financial burden of illness, a common driver of poverty. These initiatives, combined with improvements in maternal and child health, have contributed to a decline in malnutrition and infant mortality, further easing deprivations measured by the MPI. Yet, India’s journey is far from complete.
Despite the progress, 228 million people—roughly 16.4 percent of the population—remain in multidimensional poverty. Rural areas, where infrastructure and services are less developed, account for the majority of these cases. States like Bihar, Jharkhand, and Uttar Pradesh continue to face higher poverty rates than more prosperous regions like Kerala and Tamil Nadu. Urban-rural disparities also persist, with slum dwellers in cities like Mumbai and Delhi often lacking access to basic amenities despite living in economic hubs.
Caste, gender, and regional inequalities further complicate the picture, requiring tailored interventions to ensure no one is left behind. The report also highlights emerging challenges. Climate change, for instance, threatens to undo gains by exacerbating water scarcity and disrupting agriculture, which employs nearly half of India’s workforce.
The economic fallout from the COVID-19 pandemic, though not fully captured in the 2019-21 data, temporarily reversed some progress, with millions slipping back into poverty due to job losses and disrupted supply chains. While India’s economy has since rebounded, the fragility of these gains underscores the need for resilient, inclusive policies.
Globally, India’s success is being studied as a model. The World Bank, in a 2023 report, cited India’s approach as a potential framework for other developing nations, particularly in sub-Saharan Africa and South Asia, where multidimensional poverty remains entrenched. The combination of large-scale government programs, community-driven initiatives, and private-sector partnerships has created a scalable model, though experts caution that India’s context—its democratic governance, diverse economy, and cultural complexity—makes replication challenging.
Within India, policymakers are now focusing on sustaining and accelerating progress. The government has set ambitious targets to eliminate extreme poverty by 2030, in line with the United Nations’ Sustainable Development Goals. Efforts are underway to strengthen digital infrastructure, with initiatives like Digital India expanding access to online education and financial services. Skilling programs are also being scaled up to prepare India’s youth for a rapidly changing job market, particularly in technology and green industries.
For individuals like Rajesh Kumar, a 29-year-old from Rajasthan, these programs have been life-changing. Trained as a solar technician through a government-backed initiative, he now earns a steady income installing panels in his village. “Five years ago, we had no electricity at home,” he said. “Now, I’m helping bring power to others. It’s a new life.”
As India continues to refine its strategies, the world is watching. The UNDP/OPHI report not only celebrates India’s achievements but also serves as a call to action for other nations. By addressing poverty’s many dimensions—health, education, and living standards—India has shown that transformative change is possible, even on a massive scale. The challenge now is to ensure that the remaining 228 million people are not left behind, and that the gains of the past 15 years become a foundation for a more equitable future.
