New Delhi, October 30 (TNA) India lifted an estimated 496 million people out of poverty between 2011 and 2023, while the share of the population living in extreme poverty fell sharply from 27.1% to 2.6%, according to the World Bank’s October 2026 Poverty and Equity Brief.
The report said the proportion of Indians living below the lower-middle-income poverty line of $4.20 a day, measured at 2021 purchasing power parity, declined from 57.7% in 2011 to 16.1% in 2023. The World Bank.
Sharp Fall in Extreme Poverty
The World Bank measures extreme poverty in the latest assessment against a threshold of $3 per person per day at 2021 PPP. By that measure, the poverty rate declined from 27.1% in 2011 to 2.6% in 2023, lifting approximately 307 million people above the extreme-poverty line.
The report also recorded progress beyond income-based indicators, saying India had improved across both monetary and non-monetary dimensions of poverty. These measures include access to essential services and improvements in household living conditions.
Growth, Jobs and Welfare Support
The World Bank attributed the decline primarily to strong consumption growth, greater employment opportunities and expanded social transfers. Rising female employment was identified as an important factor supporting household incomes, while food subsidies and other welfare programmes helped protect vulnerable families.
The report said the pace of poverty reduction could moderate in the coming years. It projected that the share of the population living below the $4.20-a-day threshold could fall from 14.2% in 2026 to 12.1% by 2028.
Rural Economy Remains Important
The latest figures point to a broad improvement in living standards, but the World Bank’s assessment also underscores the importance of sustaining job creation and ensuring that economic gains reach poorer households. Continued progress will depend on employment growth, especially in rural areas and among women, as well as reliable access to food, healthcare, education and social protection.
The figures are based on purchasing-power-parity comparisons, which adjust for differences in the cost of living between countries. They should therefore be read as internationally comparable poverty estimates rather than as direct measures of household income in Indian rupees.
Challenges Ahead
Despite the sharp decline, millions of Indians remain below the lower-middle-income poverty line. The World Bank’s projections suggest that reducing poverty further may become more difficult as the country addresses deeper disadvantages involving low wages, unequal access to quality jobs, regional disparities and limited economic opportunities for vulnerable groups.
The report’s findings place India’s poverty reduction among the most significant global developments of the past decade, while also highlighting the need to sustain inclusive growth and strengthen the delivery of social and public services.