Page 27 - NIS English 01-15 July,2025

Economy | COVER STORY

27 crore Indians came out of Aatmanirbhar Bharat turning
extreme poverty in 11 years adversity into opportunity
According to the latest report of the World
Bank, about 27 crore people have come out of n Prime Minister Modi’s strong economic management
extreme poverty in India in 11 years. According from the beginning of the pandemic turned adversity
to the data, the rate of extreme poverty has into opportunity... All economic indicators are pointing
come down from 27.1% in 2011-12 to only towards India’s economic revival.
5.3% in 2022-23. Extreme poverty in rural areas n Production of all companies from MSME to MNC is
has come down from 18.4% to 2.8% in the same expanding. This has made a historic contribution to the
period, while extreme poverty in urban areas has service and export sector.
come down from 10.7% to 1.1%. According to n Hiring sentiment is at its highest level in many sectors.
the report, multidimensional poverty, which was This has ensured that growth is converted into jobs.
53.8% in 2005-06, fell to 16.4% in 2019-21 and
15.5% in 2022-23. At the same time, the number
of people living in extreme poverty has come Reforms based on consensus
down from 34.44 crores to 7.52 crores in 11 n Prime Minister Modi started a new trend of reforms with
years. The credit for this has been given to policy consensus by personally pushing forward many structural
reforms and reforms in the economy under the reforms in difficult times.
leadership of Prime Minister Narendra Modi.
n With the promotion of cooperative federalism, the states
Retail inflation fell by 2.82% were encouraged to voluntarily undertake reforms by the
in May, the lowest in 6 years central government.
Inflation based on the Consumer Price Index n Reforms protected the interests of all stakeholders.
(CPI) in India fell to 2.82% in May this year,
which is much lower than the same period last
year. According to the Ministry of Statistics, this Building a better economy
retail inflation rate is the lowest since February Expansion of more formalization with the introduction
2019. Food inflation fell to 0.99% in May, the n of Goods and Services Tax (GST).
lowest since October 2021. This is the 7th
consecutive month when food inflation has n The government’s strict action for recovery of dues led to
declined, mainly due to increased agricultural a rapid reduction in NPAs and economic crimes.
production. Also, inflation has come down due to n The IBC rescued the Indian banking and corporate sectors
the softening of fuel prices and the fall in crude in difficult times.
oil prices in the international market. RBI has also
reduced the inflation forecast for the financial n India is rapidly transforming into a ‘digital economy’.
year 2025-26 to 3.7%, which was earlier 4%.

signing of free trade agreements with many to India’s economy, has been in special focus.
countries have resulted in a steady increase in During the Covid period, when everything was at
FDI, i.e., Foreign Direct Investment. These efforts a standstill, the MSME sector was protected by
of the government have seen a remarkable the Emergency Credit Line Guarantee Scheme.
transformation in the Indian economy in the Not only this, by providing loans to MSMEs, more
last 11 years, and at the same time, it has had a than ₹2.39 lakh crore was saved from becoming
positive impact on all sections of society. an NPA. More than 1.5 crore jobs were saved by
helping 1.13 crore MSMEs and if a family of four
SPECIAL FOCUS ON MSME people benefited from each job, then it helped 6
The MSME sector, which contributes significantly crore people.

July 1-15, 2025 || NEW INDIA SAMACHAR 25