India's 2024 poverty rate projected to decline to 4.6% amid economic growth, shows SBI data

India's poverty rates are expected to fall to 4.6 per cent for the year 2024 amid overall economic growth, reported the news agency ANI on Tuesday, 10 June 2025, citing a State Bank of India (SBI) research report.

“Poverty estimates by SBI and World Bank are remarkably similar.... SBI estimates it at 4.6 per cent in 2024...down from 5.3 per cent in 2023 as estimated by World Bank” according to the report cited by the news agency. 

According to an earlier World Bank report, India's extreme poverty rate declined sharply to 5.3 per cent in 2022-23, over a decade when compared with 27.1 per cent levels in 2011-12.

These estimates highlight that India has made progress in reducing its poverty levels, and the SBI estimates show an improvement on top of World Bank numbers.

According to the agency report, the fall in poverty rates is due to India's new data collection method and updated definition of the metrics. The nation's Household Consumption Expenditure Survey (HCES) now considers the Modified Mixed Recall Period (MMRP) method, as compared to the earlier Uniform Reference Period (URP) method. 

Changes under the new survey method

The report mentions that the new Modified Mixed Recall Period (MMRP) method uses shorter recall periods for items which are purchased more frequently, providing a more accurate picture of the household consumption in the nation.

The survey results showed that the consumption in national surveys has increased, which has lowered the estimated poverty levels of the nation, reported the news agency. Using the MMRP method, India's poverty rate dropped from 22.9 per cent to 16.22 per cent under the old $2.15 per day poverty line.

India's falling poverty rate is due to the success of its economic reforms, targeted welfare schemes, and improved data systems, reported the news agency. 

World Bank's data

World Bank data showed how India's extreme poverty rate dropped in the last 10 years as free and subsidised food transfers supported the nation's poverty reduction and also contributed to narrowing the rural-urban poverty gap.

The international organisation also revised its poverty line threshold for India to $3 per day, compared to the earlier $2.15 per day levels, reported the news agency PTI on 7 June 2025.

The extreme poverty rate dropped to 2.3 per cent between 2011-12 and 2022-23 from the earlier 16.2 per cent. According to the agency report citing the World Bank, India's poverty rate at the lower-middle-income country (LMIC) line also declined by 33.7 per cent.