Muslims continue to face income gaps, educational disparities, and asset shortages despite economic growth and government welfare initiatives
NEW DELHI – Recent reports celebrating the “virtual elimination” of extreme poverty in India have sparked debate over the real economic position of the Muslim community. While data shows a sharp decline in extreme poverty across all communities, experts warn that broader socio-economic challenges remain for Muslims, leaving them among the most vulnerable groups in the country.
A study by renowned economists Arvind Panagariya and Vishal More, published in the Economic and Political Weekly on 29 November 2025, estimates that national extreme poverty has fallen from 21.9% in 2011–12 to just 2.3% in 2023–24. Among Muslims, extreme poverty is reported at 1.5%, slightly below Hindus at 2.3%. Rural rates for Muslims are 1.6%, compared with 2.8% for Hindus, while urban extreme poverty stands at 1.2% for Muslims and 1% for Hindus. Christians and Buddhists face higher rates, at 5% and 3.5% respectively, while Sikhs and Jains report zero.
Panagariya and More noted the positive role of economic growth and welfare schemes in these improvements. “Rapid economic growth and targeted government programmes have lifted millions above the extreme poverty line,” the report states.
However, experts stress that these figures measure only consumption-based poverty and fail to capture broader, multidimensional deprivations. These include education, health, sanitation, housing, and employment security. According to the National Multidimensional Poverty Index (NMPI), compiled by NITI Aayog using NFHS-5 (2019–21) data, 14.96% of the population still experience multidimensional poverty, down from 24.85% in 2015–16. Muslims remain disproportionately represented in these figures.
Official data reveal significant gaps in income, consumption, and assets. Muslims earn 87.9% of the national average monthly per capita consumption and own only 79% of the average household assets, compared with Hindus at 100% and 93% respectively.
Adult literacy among Muslims stands at 68–70%, lagging behind Hindus at 75–78%. Employment is also more precarious, with higher unemployment rates and overrepresentation in low-skill, informal jobs, around 70% being self-employed in unstable sectors.
“These statistics highlight the daily struggle faced by our community,” said Imran Qureshi, a social activist in Uttar Pradesh. “Poverty numbers do not capture discrimination, insecurity, and the lack of opportunities we face in education and jobs.”
Historical context adds to these challenges. The 2006 Sachar Committee report had documented lower literacy and higher deprivation among Muslims, trends that continue today. Analysts argue that while extreme poverty may have declined, multidimensional vulnerabilities leave communities exposed to economic shocks and social marginalisation.
Recent incidents of land loss, rising hate crimes, and exclusion from employment sectors have intensified concerns. A 2024 Outlook India report noted that regions with Muslim-majority populations, such as in Bihar, continue to face higher poverty and malnutrition rates. The Global Hunger Index 2024 ranks India 105th globally, reflecting “serious” hunger, with minority communities disproportionately affected.
“Extreme poverty measures alone can be misleading,” said Dr Shamika Ravi, former member of the Prime Minister’s Economic Advisory Council. “Focusing solely on survival thresholds ignores inequalities in education, assets, and social opportunity. Muslims may no longer be the poorest in absolute consumption terms, but their broader socio-economic deprivation is significant.”
The Panagariya-More study is rigorous and valuable for showing progress in reducing extreme poverty. However, for Indian Muslims, it highlights that success should not be measured merely by consumption thresholds. Advocates stress the need for targeted policies addressing education, employment inclusion, anti-discrimination measures, and asset-building.
“As a community, we need both recognition of progress and continued support to overcome systemic barriers,” said Farah Ansari, a policy researcher focusing on minority development. “Celebratory headlines cannot replace real reforms.”
India’s policymakers face the challenge of moving beyond general poverty reduction to targeted, community-specific interventions that ensure inclusion, equal opportunity, and sustainable development for all citizens, including those still facing multidimensional poverty.
