Economic Survey shows poverty reduction gains under inclusive growth model
New Delhi: The Economic Survey tabled in Parliament on Thursday said India had recorded measurable gains in poverty reduction under an inclusive growth approach guided by the principle of “Sabka Saath, Sabka Vikas, Sabka Prayas, Sabka Vishwas.”
Presenting the Survey, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman highlighted that sustained policy interventions had helped reduce inequality while improving living standards. The Survey said government efforts focused on affordable housing, food security, financial inclusion, and universal access to basic amenities.
According to the Economic Survey, policies such as income support, expanded social protection, labour market regulation and education access supported upward social mobility across generations. It said these measures helped improve well-being over an individual’s entire life cycle.
The Survey referred to updated benchmarks used to assess poverty and deprivation. In June 2025, the World Bank revised its International Poverty Line from USD 2.15 to USD 3.00 per day, adjusted to 2021 purchasing power parity. The revision provided a new basis to assess poverty levels.
Economic Survey poverty reduction data shows sharp decline
Using the revised poverty line, the Economic Survey reported that India’s extreme poverty rate stood at 5.3 per cent in 2022–23. It also placed the lower-middle-income poverty rate at 23.9 per cent for the same year. The Survey said the World Bank had acknowledged India’s progress in reducing non-monetary poverty.
The Survey also cited estimates based on the Tendulkar Committee poverty line. These showed that poverty declined from 21.9 per cent in 2011–12 to 4.7 per cent in 2022–23 and further to 2.3 per cent in 2023–24. The decline remained broad-based across states and in both rural and urban areas.
The Economic Survey drew on the SDG National Indicator Framework Progress Report 2025 to underline the impact of welfare initiatives. It said social protection coverage rose from 22 per cent of the population in 2016 to 64.3 per cent in 2025.
The Survey noted improvements in basic services. Rural access to improved drinking water increased to 99.6 per cent in 2024–25. India achieved universal household electrification in 2021–22. All districts became open defecation free in 2019–20, while over 96 per cent of villages achieved ODF Plus status by December 2025.
The Survey also highlighted higher spending on social services. General government social services expenditure grew at a compound annual growth rate of 12 per cent from FY22 to FY26. Spending on education rose at 11 per cent, while health expenditure increased at 8 per cent during the same period.
