One in every five people in India's rural areas is poor, says World Bank report

According to a report by ABP Asmita, recent data released by the World Bank shows that the proportion of poverty in India's rural areas is significantly higher compared to urban areas. According to this report, even today, one in every five people in India's villages lives below the poverty line, clearly highlighting the economic disparity between the country's rural and urban areas.

As per the data released by the World Bank in April 2026, the poverty rate in rural India was recorded at 19.3 per cent during the year 2023-24. In comparison, this proportion in urban India was much lower, at 8.6 per cent. These figures clearly indicate that the proportion of poverty in villages is more than double that in cities.

To calculate these poverty figures, a daily income of $4.20 has been considered as the poverty line. To understand these figures simply, approximately 19 out of every 100 people in rural areas are poor. Meanwhile, in urban areas, only 9 out of every 100 people are below the poverty line. This means that in cities, 1 in every 12 persons is poor, whereas in villages, this proportion is 1 in every 5 persons.

According to the ABP Asmita report, the main reason for such a high proportion of poverty in villages is unemployment. Most people in rural India are still dependent on agriculture for their livelihood. Due to this dependence on agriculture and limited employment options, poverty is more prevalent in rural areas.

In contrast, the situation in urban areas is different. In cities, jobs, various professions, and other work opportunities are available in greater numbers. Due to these opportunities, the urban population can earn better salaries, resulting in the proportion of poverty in cities being significantly lower than in rural areas.

However, the World Bank figures also show a positive aspect. A major decline in the proportion of poverty has been observed in India over the last 12 years. Based on the $4.20 daily poverty line, the proportion of poverty in India was 57.7 per cent in the year 2011-12. By the year 2023-24, this figure has decreased to 16.1 per cent.

Despite this reduction in poverty, a large section of the population is still struggling. According to 2023-24 data, approximately 232 million people, which amounts to about 23.2 crore people, are still living below the poverty line. This figure shows that although poverty has decreased, millions of people are still struggling to meet their basic daily needs.

Analysing the state of extreme poverty, it was found that according to the international poverty line of $3 per day, the proportion of poverty in India was 27.1 per cent in the year 2011-12. In 2023-24, this proportion has decreased to just 2.6 per cent, indicating a major reduction in extreme poverty.

The report also highlights the direct relationship between education and poverty. According to 2023 data, the proportion of poverty among those who were completely uneducated was recorded at 21.3 per cent. Meanwhile, among those who had obtained secondary education, the proportion of poverty decreased to just 7.4 per cent. This difference proves that education plays an extremely important role in eradicating poverty.

According to the ABP Asmita report, poverty cannot be linked solely to low income. The report mentions the concept of 'Multidimensional Poverty'. Often, situations arise where a family's income is good, but they do not have access to adequate healthcare, good education, clean drinking water, electricity, and other basic amenities. When these basic amenities are lacking alongside income, it is called multidimensional poverty.

According to recent media reports, in the year 2023, about 15.5 per cent of India's population was living in such multidimensional poverty. This suggests that to get a true concept of poverty, it is not enough to focus only on people's income, but it is also necessary to focus on the basic amenities they receive.

In summary, according to World Bank figures, in the year 2023-24, 19.3% of people in rural India and 8.6% in urban areas are below the poverty line. The decline in the proportion of poverty from 57.7% in 2011-12 to 16.1% in 2023-24 indicates improvement, but 23.2 crore people being below the poverty line and unemployment and lack of education in rural areas remain major subjects of concern.