India has achieved a significant reduction in poverty, with the World Bank reporting one of the fastest declines globally. The share of the population living below the extreme poverty line fell from 27.1% in 2011 to 2.6% in 2023, driven by government initiatives and increased employment.
The World Bank's October 2026 Poverty and Equity Brief highlights that nearly 496 million people have moved above the lower-middle-income poverty line of $4.20 a day between 2011 and 2023. During this period, the poverty rate dropped from 57.7% to 16.1%. The report anticipates a continued decline in poverty, albeit at a slower pace, with projections indicating a decrease from 14.2% in 2026 to 12.1% by 2028.
Finance Minister Nirmala Sitharaman praised the findings, attributing the progress to strong consumption growth, rising employment, particularly among women, and expanded social transfers such as food subsidies. She emphasized the government's commitment to fostering inclusive growth and economic opportunities under Prime Minister Narendra Modi's leadership.
Employment figures have also seen a notable rise, with 134 million people entering the workforce between 2017 and 2023, nearly double the increase in the working-age population. Rural women have played a significant role in this employment surge, contributing to household income and narrowing the rural-urban gap.
Access to electricity has reached 99% of the population, the report notes that poverty remains concentrated among households with lower education, fewer assets, and limited access to stable employment. Wage disparities persist, with the top 10% of workers earning about 13 times more than the bottom 10% in 2023.
Geographically, poverty is increasingly concentrated in a belt stretching from Uttar Pradesh to West Bengal, which accounts for about 57% of India's poor population. Despite improvements in living standards across most states, these regions continue to face significant challenges.
Youth unemployment has risen slightly from 14.6% to 15.9% between Q1 FY2026 and Q1 FY2027, particularly affecting rural young women. The World Bank also highlighted that real earnings have remained largely unchanged, with employment growth concentrated in low-productivity sectors.
The report underscores the importance of addressing these disparities to sustain India's progress in poverty reduction. As the nation continues to build on its achievements, the focus remains on enhancing productive employment, strengthening household incomes, and ensuring effective delivery of public services to meet the aspirations of its people.
