Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament on 29 January 2026. Its rural chapter shows a steep fall in multidimensional poverty in India. Notably, Chapter 13 bears the title “Rural Development and Social Progress: From Participation to Partnership”. So, the chapter offers rich data for prelims and mains.
How Multidimensional Poverty Fell
The Survey cites NITI Aayog’s Multidimensional Poverty Index (MPI) headcount ratio. In 2005-06, the ratio stood at 55.3%. Then, it fell to 14.96% in 2019-21. Further, it dropped to 11.28% in 2022-23. However, the Survey also notes a World Bank multidimensional estimate of 15.5% for 2022-23.
Income Poverty Estimates
The Survey also quotes Tendulkar-line estimates by Panagariya and More (2025). Accordingly, poverty fell from 21.9% in 2011-12 to 4.7% in 2022-23. Moreover, it fell further to 2.3% in 2023-24. Meanwhile, the World Bank raised its extreme poverty line to USD 3.00 a day in June 2025. At this line, extreme poverty stood at 5.3% in 2022-23.
VB-G RAM G Act and Rural Jobs
The chapter discusses the VB-G RAM G Act, 2025. It gives a legal guarantee of 125 days of wage work per rural household each year. In contrast, MGNREGS offered 100 days. In addition, states may pause the work for up to 60 days during peak farm seasons. Also, social audits must happen at least every six months.
Other Rural Gains in the Survey
- PMAY-G: 2.93 crore houses completed against a target of 4.95 crore by 2029
- Jal Jeevan Mission: Tap water for about 15.74 crore households (81.31%) by 20 November 2025
- DAY-NRLM: 90.90 lakh SHGs covering 10.05 crore households
- Social protection: Coverage rose from 22% (2016) to 64.3% (2025)
Multidimensional Poverty in India: Key Facts for Revision
- Survey tabled: 29 January 2026
- Chapter: 13, Rural Development and Social Progress
- MPI headcount: 55.3% (2005-06), 14.96% (2019-21), 11.28% (2022-23)
- Tendulkar-line poverty: 21.9% (2011-12), 4.7% (2022-23), 2.3% (2023-24)
- New jobs law: VB-G RAM G Act, 2025, with 125 days of work
Why Multidimensional Poverty Matters for UPSC and UKPSC
Notably, examiners often ask about poverty measures and their sources. So, remember the MPI figures, the Tendulkar-line estimates and the new World Bank line. Also, link the VB-G RAM G Act with the earlier MGNREGS. For official updates, also visit the Economic Survey portal. Next, for a related story, read about the five Indian states crossing the upper-middle-income threshold.
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