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World Bank Sets New Poverty Line at USD 3/Day; India’s Extreme Poverty Falls to 5.3%.

International | Dated: 12 Jun 2025

In June 2025, the World Bank, headquartered in Washington, United States of America (USA), released its Global Poverty Update, revising the global poverty threshold to USD 3 per day (daily consumption under USD 3), up from the earlier USD 2.15 per day (based on 2017 prices).

🎯 Key Highlights:

  • - As per the report, India’s extreme poverty rate declinedsignificantly from 27.1% to 5.3%.
  • - The International Poverty Line (IPL) was introduced by the World Bank in 1990 to standardize poverty measurement globally. It represents the minimum expenditure needed for basic necessities like food, clothing, and shelter, and is adjusted using Purchasing Power Parity (PPP) to enable fair cross-country comparisons of living standards.

💡 Other Important Facts:

  • (i) From 2011-12 to 2022-23, the number of people in India living in extreme poverty reduced from 344.47 million to 75.24 million, indicating that around 269 million people moved out of poverty during this period.
  • (ii) Five states—Uttar Pradesh (UP), Maharashtra, Bihar, West Bengal (WB), and Madhya Pradesh (MP)—which collectively accounted for 65% of India’s extreme poor in 2011-12, were responsible for two-thirds of the total poverty reduction by 2022-23.

📚 Test Your Knowledge:

According to the World Bank’s recently released Global Poverty Update, what is India’s current extreme poverty rate?

Correct Answer: 5.3%

🚀 Quick Recap:

About World Bank

  • President: Ajay Banga
  • Headquarters: Washington, United States of America (USA)