India lifted 496M people out of extreme poverty: World Bank
What's the story
India has lifted an estimated 496 million people out of extreme poverty between 2011 and 2023, according to the World Bank's October 2026 Poverty and Equity Brief. This represents "one of the fastest poverty declines in the world." The share of India's population living in extreme poverty fell from 27.1% in 2011 to just 2.6% by 2023, a major improvement for the country.
Economic factors
Poverty reduction attributed to economic growth, social safety nets
The World Bank attributed this drastic reduction in poverty to strong consumption growth, rising employment (especially among women), and expanded social transfers like food subsidies.
The report also noted a significant drop in the lower-middle-income poverty line of $4.20 per day (2021 PPP), from 57.7% to 16.1%.
Despite these gains, youth unemployment rose from 14.6% to 15.9% between FY26Q1 and FY27Q1, especially among rural young women.
Poverty measures
Projections show further decline in poverty levels by 2028
The World Bank's projections indicate that poverty at the $4.20-a-day threshold could further decline to 12.1% by 2028.
However, these are indicative estimates based on microsimulations and may change with new data.
Non-monetary poverty indicators have also improved significantly, with the Oxford Poverty and Human Development Initiative's Multidimensional Poverty Index falling from 53.8% in 2005-06 to 16.4% in 2019-21.
Ongoing issues
Regional disparities and employment challenges persist
Despite the progress, regional and employment-related challenges remain.
Around 57% of India's poor population is concentrated in a contiguous belt from Uttar Pradesh to West Bengal.
The report stressed the need for productive employment opportunities in these states to sustain poverty reduction efforts.
Real earnings remained broadly unchanged, with employment growth concentrated in low-productivity activities.