NEW DELHI: Absolute poverty in India, as measured by the World Bank’s benchmarks, has been “virtually eliminated,” but addressing the last fraction of those living below $1.9 a day requires targeted efforts rather than broad policy action, Niti Aayog member Arvind Virmani said on Tuesday.
Speaking at an event organised by the IMC Chamber of Commerce, Virmani highlighted that the proportion of the population categorised as “vulnerable” has also seen a sharp decline—from over 50 per cent 12 years ago to 15 per cent today – and is expected to disappear entirely within seven years.
“Absolute poverty has fallen from 12.2 per cent to 2.3 per cent over the past 11 years and is now down to just 1 per cent. The kind of poverty we’ve been discussing for decades is practically gone,” said Virmani, who previously served as the Chief Economic Advisor between 2007-09.
Income inequality
However, he acknowledged that while absolute poverty has declined, income inequality has worsened, indicating a shift in economic challenges.
The remaining 1 per cent of the population still in absolute poverty largely resides in remote and hilly regions, requiring case-by-case interventions rather than sweeping policy measures. “You can’t have a general policy anymore. You have to go out there and find the actual individuals,” he added.
Virmani explained that the World Bank originally defined absolute poverty as earning below $1 per day in the 1960s, which, when adjusted for inflation, stands at $1.9 per day today. Similarly, those earning under $2 per day (or $3.2 today) were classified as vulnerable.
While the vulnerable population share has dropped sharply to 15 per cent, Virmani expressed confidence that this too will be eliminated within seven years.
The bigger challenge ahead, however, lies in bridging income disparities, even as India’s fight against extreme poverty reaches its final stretch.
