Archive · 8 Jun 2025
World Bank Updates Poverty Line, Impacts Global and Indian Estimates
The World Bank updated its global poverty line, which changed how many people are considered extremely poor worldwide.
The new line is now $3 a day, up from $2.15, meaning more people globally are now classified as poor.
However, for India, this new method, combined with new data, led to a downward revision of poverty estimates.
Improved data collection methods and the inclusion of subsidized goods in consumption spending explain these changes, but comparing the current data with older data is not recommended.
The World Bank revised the extreme poverty line to $3 per day using 2021 PPP, up from $2.15.
Globally, the new poverty line increases the estimated number of people in extreme poverty.
India's estimated extreme poverty rate for 2022 is 5.3% under the new methodology, down from a previous estimate.
The change in India's estimate is based on both the revised poverty line and new consumption data.
The World Bank uses different poverty lines for different income levels, with $4.20/day for lower-middle income countries like India.
- Who
- The World Bank and India.
- What
- The World Bank revised the international poverty line and updated India's poverty estimates.
- When
- 2022
- Where
- Globally, with a focus on India.
- Why
- Due to updates in Purchasing Power Parity (PPP) factors, improved data collection, and new consumption expenditure surveys.
- India's Extreme Poverty Rate (2022, new method)
- 5.3%
- New Extreme Poverty Line (2021 PPP)
- $3/day
- Previous Extreme Poverty Line (2017 PPP)
- $2.15/day
- Global Poverty Rate (2022, new method)
- 10.5%
- India's Poverty Rate (2022, $4.20/day line)
- 23.9%
