NEW DELHI: India has recorded a significant decline in poverty over the past 12 years, with the share of its population living in extreme poverty falling from 27.1 per cent in 2011 to 2.6 per cent in 2023, according to the World Bank’s October 2026 Poverty and Equity Brief.
The report estimated that around 496 million people moved out of extreme poverty during the period. Poverty measured against the lower-middle-income threshold of USD 4.20 per day, calculated using 2021 purchasing power parity (PPP), also declined substantially, from 57.7 per cent to 16.1 per cent.
The World Bank described the reduction as one of the fastest declines in poverty globally, highlighting improvements in both monetary and non-monetary indicators. It attributed the progress primarily to stronger household consumption, increased employment, particularly among women, and expanded social assistance, including food subsidies.
The downward trend is expected to continue, although at a slower pace. World Bank projections suggest that the poverty rate at the USD 4.20-a-day threshold could decrease from 14.2 per cent in 2026 to 12.1 per cent by 2028. The estimates are indicative and may change as fresh labour market and economic data become available.
India has also made progress in reducing multidimensional poverty, which considers factors beyond income. The report said the poverty rate measured through the Oxford Poverty and Human Development Initiative’s Multidimensional Poverty Index fell from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21. The World Bank’s own multidimensional poverty measure stood at 15.5 per cent in 2022-23.
Despite these improvements, regional disparities and employment challenges remain significant. Around 57 per cent of India’s poor population is concentrated in a contiguous belt stretching from Uttar Pradesh to West Bengal. Expanding productive employment opportunities in these states will be important for sustaining further reductions in poverty.
Employment increased by approximately 134 million people between 2017 and 2023, nearly twice the growth in the working-age population. Much of the increase came from rural women entering paid employment.
However, the report pointed to concerns about job quality and opportunities for young people. Youth unemployment rose from 14.6 per cent to 15.9 per cent between the first quarters of FY26 and FY27, with rural young women particularly affected. Real earnings also remained broadly unchanged, while much of the employment growth occurred in relatively low-productivity activities.
The World Bank cautioned that poverty estimates based on household consumption surveys may reflect improvements in measurement as well as genuine gains in living standards. Continued employment growth, better earnings and stronger economic opportunities will remain important for ensuring that poverty reduction continues.
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