Did Modi-era policies lift Muslims out of extreme poverty faster than other communities

• Is the long-held perception of Muslim poverty in India now outdated?

India’s story of reducing poverty has entered a historic phase, and new research by Dr. Arvind Panagariya confirms what millions of families have experienced in their daily lives. In just over a decade, India has lifted almost its entire population out of extreme poverty. This is one of the fastest and most inclusive poverty reductions in the world. What makes this moment even more striking is that the data shows that extreme poverty is now slightly lower among Muslims than among Hindus.

This breaks a long-held belief and shows that growth under Modi-led governance has touched every community. Extreme poverty falling to just 2.3% in 2023–24 is a national milestone. It means that the struggles of hunger, unstable income, and basic survival are no longer the daily reality for most households. The World Bank–defined line of extreme poverty, once a major challenge for India, is now almost gone. This transformation reflects a combination of targeted welfare schemes, economic stability, and a strong focus on inclusive development that the Modi government has consistently emphasised.

For many Muslim families, this shift is visible in their kitchens, in their homes, and in the lives of their children. Access to free food grains, affordable housing, electricity, clean toilets, and bank accounts has changed their daily living conditions. When poverty falls to just 1.5% among Muslims, it means a historic turnaround from decades of marginalisation. It proves that development policies, when implemented without discrimination, can uplift communities that were once left behind.

An important point highlighted by the Panagariya study is that Muslims have experienced faster poverty reduction than many other communities, even though they remain socially and educationally backward in many regions. This proves that economic growth, when combined with targeted welfare, can overcome old barriers and produce real inclusion.

One important insight from the paper is the comparison between religious communities. For many years, social debates suggested that Muslims lived with higher levels of poverty. But the latest data shows something different and very hopeful: only 1.5% of Muslims now fall under extreme poverty, compared to 2.3% of Hindus.

This shows a country where welfare and progress are not limited by religion. Growth has become more universal and neutral, driven by equal opportunities. Over the last ten years, government programmes such as free food grains under PM Garib Kalyan Anna Yojana, universal electricity connections, affordable housing, bank account access, direct benefit transfers, and healthcare security through Ayushman Bharat have reached people in every corner of the country.

When benefits reach the poor without leakages and without discrimination, the results naturally show up in national poverty data. Rural India has seen the sharpest decline in poverty, which is remarkable because rural poverty was once the biggest challenge. This improvement aligns closely with large-scale rural investments such as roads under PMGSY, clean water connections under Jal Jeevan Mission, rural housing under PM Awas Yojana, and rising agricultural support.

For years, rural distress used to dominate discussions about India’s progress. Today, rural transformation is the driving force behind India’s poverty reduction story. Urban poverty too has fallen sharply. Urban poor—who face high costs of living—benefited from reforms in housing, social welfare, and digital inclusion. Digital India ensured subsidies reached directly into the hands of beneficiaries, saving billions of rupees from corruption. This transparency has strengthened trust in government institutions and improved the lives of countless families who once depended on uncertain intermediaries.

A particularly encouraging part of the study is that Scheduled Castes, Scheduled Tribes, OBCs, and Forward Castes all saw strong declines in poverty. Even among tribal communities, which have historically been left behind, extreme poverty is now below 9%. This is the clearest evidence that economic benefits have become broad-based and deep-rooted. Tribal regions, which often lacked basic infrastructure, have witnessed unprecedented investment under Modi-led initiatives.

Another significant finding is the improvement among urban Muslims. In 2011–12, urban Muslim poverty was far higher than that of Hindus. But by 2023–24, both communities had almost the same poverty level—around 1%. This signals that economic progress under an inclusive development model is possible and sustainable when growth is combined with targeted welfare and social security.

Perhaps the most powerful message from the data is that “perception must now change.” For decades, poverty discussions were shaped by divisions—religion, caste, and region. But today’s India shows a different reality: a country that has reduced poverty across every category with almost no gap between communities.

This is a mark of responsible governance, long-term planning, and a development agenda that puts people before politics. The study also highlights that no Indian state or Union Territory now has a poverty rate in double digits. A decade ago, this would have been unimaginable. It shows how state-level implementation—supported by central funding and monitoring—has produced consistent results nationwide. Whether in the North-East, the South, the Himalayas, or the coastal regions, development has become more uniform.

States like Himachal Pradesh, Sikkim, Goa, Delhi, Chandigarh, and Daman & Diu have reached poverty rates close to zero. This reflects strong infrastructure, stable governance, and high-quality public services. Such achievements push India closer to its aspiration of becoming a developed country by 2047.

The deeper truth behind these numbers is that rapid economic growth over the last two decades, combined with expanded welfare under the Modi government, created the right environment for people to rise above poverty. When economic expansion meets social protection systems that actually work, poverty falls. India today is a global example of how growth and welfare can move hand-in-hand.

This is also a moment to reflect on the impact of social reforms. The Jan Dhan-Aadhaar-Mobile (JAM) trinity changed the relationship between the citizen and the state. Leakages in welfare distribution used to be one of the biggest barriers to poverty reduction. Now, money reaches directly, without middlemen and without discrimination.

This efficient system ensured that the poorest received what they were meant to receive. In the broader global context, India’s achievement is extraordinary. Many countries struggle to reduce poverty even with high GDP growth. But India has done both—grown fast and distributed the gains widely. This dual success strengthens India’s international standing and inspires confidence among global investors and institutions.

Another positive aspect is that the benefits of growth reached even minority and disadvantaged groups without special political messaging. This natural inclusion is far more meaningful than symbolic politics. When communities rise because systems become fairer and opportunities expand, social harmony improves and national unity deepens.

Millions of families who once lived on the margins now have access to better nutrition, healthcare, education, and opportunities for work. Children growing up today in these households will experience a very different India—stronger, safer, and full of possibilities. This shift is also psychological. When a nation believes in its progress, people invest more in education, entrepreneurship, and community development. The confidence created by reduced poverty becomes fuel for further growth. India’s success reinforces a belief that transformation is not only possible but achievable within a single generation.

It is thus fair to say that India under Prime Minister Narendra Modi has brought the country to a turning point. What India could not achieve for decades has been achieved in just ten years: a nation where extreme poverty is almost gone, where communities stand on equal ground, and where development reaches both rural and urban hearts of the country.

This is a civilisational rise. It shows that when governance is transparent, determined, and people-centric, deep-rooted problems like poverty can be defeated. India’s journey from scarcity to stability, and now to aspiration, is a story that must be told with pride. And this is only the beginning of India’s larger journey toward becoming a developed nation by 2047.

(Author is Professor in Comparative Literature and Secretary General of Forum for Muslim Studies and Analysis (FMSA). www.namostudies.com