Which is the India Poor State? Many people want to know the answer. While India is positioning itself as a global economic superpower in 2025, the growth has not been uniform.
According to the latest data from the NITI Aayog Multidimensional Poverty Index (MPI), Bihar remains the poorest state in India, followed closely by Jharkhand and Meghalaya. However, the landscape is shifting rapidly. States like Uttar Pradesh, which were historically at the bottom, have recorded the sharpest decline in poverty numbers, moving millions of people into the developing bracket.
Below is the detailed ranking and analysis of the poorest states in India based on the latest available government data.
Top 5 Poorest States in India (2025 Updated List)
| Rank | State | % Population in poverty (Latest Official)* | Status |
| 1 | Bihar | 33.76% (Down from 51.91%) | Poorest, but fastest improving |
| 2 | Jharkhand | 28.81% (Down from 42.16%) | Significant reduction |
| 3 | Meghalaya | 27.79% | Correction: Poorer than UP now |
| 4 | Uttar Pradesh | 22.93% (Down from 37.79%) | Huge Improvement (Moved out of top 3) |
| 5 | Madhya Pradesh | 20.63% (Down from 36.65%) | Strong improvement |
The ranking is determined by the percentage of people living below the poverty line, which is calculated using the Tendulkar method on Mixed Reference Period (MRP).
Detailed Analysis: The 5 Poorest States
1. Bihar
Bihar tops the list as the poorest state in India. Approximately 33.76% of Bihar’s population lives below the multidimensional poverty line.
- The Context: While it is still at the bottom, Bihar has made the fastest absolute progress. In 2015, over 51% of the state was poor; today, that number has dropped significantly.
- Why: The reasons are historical, institutional, and geographical. High illiteracy rates, fragmented land holdings, and annual floods in the Kosi region hamper structural development.
- Districts:
- Highest Poverty: Kishanganj (64.75%)
- Lowest Poverty: Patna (29.20%)
2. Jharkhand
Jharkhand is the second poorest state. The poverty level currently stands at 28.81%.
- The Context: Despite being rich in minerals (coal, iron ore), the economic benefits have not fully trickled down to the local population.
- Why: Jharkhand’s social indicators, literacy, school enrollment, and child nutrition, remain below the all-India average. Since separating from Bihar in 2000, political instability has also slowed development.
3. Meghalaya
Often overlooked in older lists, Meghalaya is currently the third poorest state with 27.79% of its people in poverty.
- The Context: While the state has high literacy relative to other poor states, it lags severely in standard of living indicators like cooking fuel, sanitation, and housing.
- Why: Difficult terrain and poor connectivity restrict industrial growth, leaving the population dependent on subsistence agriculture.
4. Uttar Pradesh (UP)
Uttar Pradesh has a poverty rate of 22.93%.
- The Success Story: UP has recorded the highest decline in the number of poor people in India. In the last five years, over 3.43 crore people in UP escaped poverty.
- Why: Improvements in electricity access, sanitation (Swachh Bharat), and nutrition schemes have helped UP move out of the “Top 3” poorest list.
- Districts:
- Highest Poverty: Shrawasti (74.38%)
- Lowest Poverty: Lucknow (12.16%)
5. Madhya Pradesh (MP)
Poverty in Madhya Pradesh is around 20.63%.
- The Context: Often called the “Tribal State of India,” MP is home to the largest Scheduled Tribal (ST) population.
- Why: The rural poor in forest areas depend heavily on forest resources. While cities like Indore are booming (Cleanest City in India), districts like Alirajpur struggle with literacy and income.
- Districts:
- Highest Poverty: Alirajpur (71.3%)
- Lowest Poverty: Indore (10.86%)
How Climate Change Keeps People Poor
Poverty isn’t just about money anymore. It is also about the changing weather. Extreme weather is hitting the poorest states the hardest. Here is how:
- Bihar (Floods and Dry Spells): In 2024, the Kosi River saw massive floods that destroyed crops. But at the same time, other parts of the state had very little rain. Farmers lost their crops to both floods and dry weather. Without crops to sell, they cannot earn money to escape poverty.
- Meghalaya (Less Rain): Meghalaya used to be known as the wettest place on Earth. But in 2025, it received very little rain (56% less than normal). Since most people there are farmers who depend on rain, this “water shortage” is making life very hard.
- Jharkhand (Too Much Heat): It is getting dangerously hot in Jharkhand. A recent report says the state now has over 50 “heatwave days” a year. Laborers and construction workers cannot work outside in this heat. If they work fewer hours, they earn less money.
What is the Multidimensional Poverty Index (MPI)?
Unlike old methods that only counted income, the Global MPI and India’s National MPI look at poverty from three equally weighted dimensions:
- Health: Nutrition and Child/Adolescent Mortality.
- Education: Years of schooling and school attendance.
- Standard of Living: Cooking fuel, sanitation, drinking water, electricity, housing, and assets.
A person is considered “multidimensionally poor” if they are deprived in one-third or more of the weighted indicators.
Comparison: Poorest States by GDP (2023-24)
Sometimes a state may have higher income (GDP) but still have high poverty due to inequality. However, economic output often correlates with poverty.
- Bihar: The lowest GDP per capita in India. The economy is 80% dependent on agriculture with very little industrial diversification.
- Uttar Pradesh: While the total GDP is high (due to a huge population), the per capita income remains low. However, UP is aiming for a $1 Trillion economy by 2027.
- Odisha: Historically poor, but rapidly growing due to mining and disaster management success.
State-wise Poverty Data (Rural vs Urban)
Based on percentage of population below the poverty line (Tendulkar Method & MPI estimates)
- Rural Poverty is higher: Across all states, rural poverty (19.28% average) is significantly higher than urban poverty (5.27%).
- The outliers: States like Kerala (0.55%) and Goa (0.84%) have effectively eradicated extreme poverty, setting a benchmark for the rest of the country.
Frequently Asked Questions (FAQs)
Here are the most common questions people ask about poverty in India in 2025.
Q1. Which is the poorest state in India in 2025?
Answer: Bihar is the poorest state in India with 33.76% of its population living in multidimensional poverty, followed by Jharkhand and Meghalaya.
Q2. Is Uttar Pradesh still a poor state?
Answer: Uttar Pradesh is still the 4th poorest state (22.93%), but it is improving faster than any other state. It has moved out of the top 3 poorest list due to rapid development in the last 5 years.
Q3. Which state has the lowest GDP in India?
Answer: Bihar has the lowest GDP per capita (approx. ₹32,227/year). In terms of total GDP size, Mizoram and Andaman & Nicobar have smaller economies, but their people are richer on average than Bihar’s.
Q4. Which are the top 5 poorest states in India?
Answer: The top 5 poorest states by MPI are:
- Bihar
- Jharkhand
- Meghalaya
- Uttar Pradesh
- Madhya Pradesh
Q5. What is the Multidimensional Poverty Index (MPI)?
Answer: The MPI is a measure used by the UN and NITI Aayog that counts poverty not just by money, but by 3 dimensions: Health (nutrition, child mortality), Education (school years, attendance), and Standard of Living (water, electricity, housing).
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