Poverty in India: A Persistent Challenge Despite Economic Growth

New Delhi, May 1, 2025 –

Data from the NITI Aayog’s Multidimensional Poverty Index (MPI) reveals that although India has made considerable progress in reducing poverty over the last two decades, disparities remain stark, especially in rural areas and among marginalized communities. States like Bihar, Jharkhand, and Uttar Pradesh report some of the highest poverty rates.

Experts argue that the COVID-19 pandemic and subsequent lockdowns pushed millions back below the poverty line, erasing years of economic progress. Informal workers, daily wage laborers, and small-scale farmers were among the hardest hit.

While government schemes such as the Pradhan Mantri Awas Yojana, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and the Public Distribution System (PDS) have played a crucial role in poverty alleviation, implementation gaps and corruption continue to limit their impact.

Economists suggest that more inclusive growth, targeted welfare programs, and structural reforms are essential to break the cycle of poverty. As India aspires to become a $5 trillion economy, addressing poverty must remain a top national priority.