When India gained independence in 1947, poverty was a major problem. Around 70 to 80 percent of the population lived below the poverty line. Colonial rule had left the country with low industrial growth, a struggling agrarian economy, widespread food shortages, and poor access to education and healthcare. Millions of people faced extreme deprivation, unable to meet even basic needs.
After independence, the Indian government began implementing social and economic reforms to improve lives. Land reforms redistributed land to farmers, giving them a chance to earn a living and improve agricultural output. The Green Revolution in the 1960s and 1970s introduced modern farming methods, new seeds, and irrigation techniques. This significantly increased food production and rural incomes. Investments in infrastructure, such as roads, electricity, and irrigation, helped connect villages to markets and improve livelihoods.
Despite these efforts, progress was slow in the first few decades. By the late 1950s, about 65 percent of people were still living in poverty. Economic stagnation, famines, and limited industrial growth during the 1960s and 1970s kept poverty levels high. People still struggled with low incomes, poor nutrition, and limited access to healthcare and education.
The 1980s and 1990s marked a turning point in India’s fight against poverty. Economic liberalisation in 1991 opened markets, encouraged private investment, and boosted industrial growth. This created more jobs and increased incomes across many sectors. Alongside economic growth, the government expanded social welfare programs to reach those in need.
Key government schemes played an important role in reducing poverty. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provided rural households with guaranteed work and income. The Pradhan Mantri Awas Yojana (PMAY) aimed to give affordable housing to the poor, while the Pradhan Mantri Jan Dhan Yojana (PMJDY) focused on financial inclusion, giving millions access to bank accounts and financial services. Other programs, such as the National Rural Livelihood Mission (NRLM), trained and empowered women through skill development and employment opportunities. These initiatives not only provided income but also improved access to education, health services, and basic infrastructure.
By 2011–12, the poverty rate had dropped significantly, with around 22.9 percent of the population living below the national poverty line. Recent data from the World Bank shows that extreme poverty, measured by those living under Rs 175 per day, fell from 27.1 percent in 2011–12 to approximately 5.3 percent in 2022–23. This represents millions of people moving out of extreme poverty and gaining access to better living standards.
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Apart from economic growth and government schemes, other factors contributed to this success. Rural development initiatives improved infrastructure and agricultural productivity. Empowering women through skill development and employment programs gave them independence and increased household income. Financial inclusion, through banking services and microloans, allowed people to save, invest, and start small businesses. Together, these efforts improved overall quality of life and helped lift millions out of poverty.
However, challenges remain. Poverty is still more prevalent in rural areas and among marginalized communities. Access to quality education, healthcare, and employment opportunities is uneven. Continued focus on inclusive growth, better implementation of welfare programs, and targeted support for vulnerable populations are essential to ensure that everyone can achieve a dignified standard of living.
India’s journey from extreme poverty at independence to significant reductions today shows the importance of sustained policy interventions, economic reforms, and development programs. From land reforms and the Green Revolution to modern employment schemes and financial inclusion initiatives, a combination of government action, economic growth, and social empowerment has transformed millions of lives.
While much has been achieved, the fight against poverty is not over. Ensuring that the remaining population escapes deprivation requires continued efforts, innovation, and inclusive policies. Programs such as MGNREGA, PMAY, PMJDY, and NRLM have shown that well-designed government initiatives, combined with economic development, can create lasting impact. India’s success story in reducing poverty serves as a lesson in the power of coordinated development and sustained commitment to social and economic welfare.
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