Lok Sabha Question No. 1641 (UNSTARRED), answered on 2025-07-30
Subject: India as Lower Middle Income Country
Ministry: PLANNING
Asked by: Shri Subbarayan K, Com. Selvaraj V

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION NO. 1641

TO BE ANSWERED ON 30.07.2025

## INDIA AS LOWER MIDDLE INCOME COUNTRY

1641.   SHRI SUBBARAYAN K: COM. SELVARAJ V:

Will the Minister of PLANNING be pleased to state:

- (a) whether it is a fact that the World Bank has categorised India as a Lower Middle Income Country (LMIC) for the purpose of calculating the poverty and the poverty line is Rs. 4.20 per day per person; and
- (b) if so, the according to such categorization, the details of poverty rate and the number as in 2011-12 and 2022-23 in rural and urban in India, State-wise?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CULTURE

## (RAO INDERJIT SINGH)

- (a) The World Bank has recently revised the international poverty lines and set the threshold for lower-middle-income countries (LMICs) at $4.20 per day, based on 2021 Purchasing Power Parities (PPPs). India is currently classified as an LMIC.
- (b) According to the report, India's poverty rates are as given below:

|         | %of population below poverty line        | %of population below poverty line     | %of population below poverty line        | %of population below poverty line     |
|---------|------------------------------------------|---------------------------------------|------------------------------------------|---------------------------------------|
|         | 2017 PPP                                 | 2017 PPP                              | 2021 PPP                                 | 2021 PPP                              |
|         | Extreme Poverty $2.15 per day (2017 PPP) | LMIC poverty $3.65 per day (2017 PPP) | Extreme poverty $3.00 per day (2021 PPP) | LMIC poverty $4.20 per day (2021 PPP) |
| 2022-23 | 2.3%                                     | 28.1%                                 | 5.3%                                     | 23.9%                                 |
| 2011-12 | 16.2%                                    | 61.8%                                 | 27.1%                                    | 57.7%                                 |

|         | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   | %of population below poverty line 2017 PPP   |
|---------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
|         | Extreme Poverty $2.15 per day                | Extreme Poverty $2.15 per day                | Extreme Poverty $2.15 per day                | Extreme Poverty $2.15 per day                | LMIC poverty $3.65 per day                   | LMIC poverty $3.65 per day                   | LMIC poverty $3.65 per day                   | LMIC poverty $3.65 per day                   |
| Year    | Rural                                        | Urban                                        | Total                                        | No. of people lifted out of poverty          | Rural                                        | Urban                                        | Total                                        | No. of people lifted out of poverty          |
| 2022-23 | 2.8                                          | 1.1                                          | 2.3                                          | 171 million                                  | 32.5                                         | 17.2                                         | 28.1                                         | 378 million                                  |
| 2011-12 | 18.4                                         | 10.7                                         | 16.2                                         | 171 million                                  | 69                                           | 43.5                                         | 61.8                                         | 378 million                                  |

The detailed documents are in public domain and can be accessed at https://documents1.worldbank.org/curated/en/099722104222534584/pdf/IDU-25f34333-d3a344ae-8268-86830e3bc5a5.pdf https://documents1.worldbank.org/curated/en/099510306052516849/pdf/IDU-eb272b02-ecd14633-9e37-9297e20a711c.pdf

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