1. Explained: World Bank’s Poverty & Equity Brief — Extreme Poverty Falls to 2.6%
[Indian Express] | GS-II, GS-III
Context:
The World Bank’s October 2026 Poverty & Equity Brief shows a steep fall in extreme poverty in India, while flagging stagnant real wages, high youth unemployment and a concentration of the remaining poor in a northern–eastern belt.
Key Highlights:
• Extreme poverty: At the $3.00/day line (2021 PPP), poverty fell to 2.6% in 2023 from 27.1% in 2011.
• Higher line: At $4.20/day it fell from 57.7% to 16.1%; rural poverty (19.3%) remains more than double urban (8.6%).
• Inequality: Consumption Gini dropped to 23.0 (2023) from 28.8 (2011-12), though the brief warns surveys under-capture the rich.
• Jobs: Employment rose by about 13.4 crore over 2017–2023, led by rural women, but real earnings have stagnated.
• Where the poor are: About 57% of the remaining poor live in a belt from Uttar Pradesh to West Bengal; youth unemployment rose to 15.9% (Q1 FY27).
Prelims Corner:
| Term / Fact | Details |
|---|---|
| New WB lines (2025) | $3.00/day extreme poverty; $4.20/day lower-middle-income line (2021 PPP). |
| Gini coefficient | 0 = perfect equality, 100 (or 1) = perfect inequality. |
| MPI | Global MPI by UNDP–OPHI; national MPI by NITI Aayog (health, education, living standards). |
| HCES 2022-23 | Household Consumption Expenditure Survey by MoSPI/NSO. |
Mains Facts:
| Dimension | Key Points |
|---|---|
| Significance | Validates welfare delivery (DBT, food subsidy, housing, electrification). |
| Concerns | Vulnerability just above the line, regional concentration, wage stagnation, youth joblessness. |
| Way Forward | MSME and industrial corridors in the eastern belt, female labour in higher-productivity jobs, updated Census frame. |
| Probable Question (GS-III) | India has made rapid gains against extreme poverty, but the next phase is harder. Discuss. (250 words) |