Significant decline in extreme poverty in India over the last 12 years

According to the World Bank's October 2026 Poverty and Equity Brief report, a notable decline in the rate of extreme poverty has been observed in India during the last 12 years. During this period, the population living in extreme poverty has dropped from 27.1 percent to just 2.6 percent. The report states that between 2011 and 2023, an estimated 49.6 crore people have been successfully lifted out of poverty.

This progress has been described by the World Bank as one of the fastest poverty reduction cases in the world. The organization has noted that India has shown improvement in reducing poverty across both monetary and non-monetary criteria. This reduction in poverty has been primarily attributed to strong consumption growth, an increase in employment, particularly rising employment among women, and expanded social transfers including food subsidies.

Important statistical information has also been provided in another part of the report. According to the 2021 purchasing power parity (PPP), the proportion of people living below the lower-middle-income poverty line of USD 4.20 per day has decreased from 57.7 percent to 16.1 percent during this period. According to World Bank estimates, this reduction in poverty will continue in the future, although its pace may be slower. The report predicts that the poverty rate at the USD 4.20 threshold could decline from 14.2 percent in 2026 to 12.1 percent by 2028. However, the organization has cautioned that these are microsimulation-based indicator estimates and may change when new labor market and macroeconomic data become available.

Non-monetary poverty has also witnessed a significant decline. The poverty rate measured by the Oxford Poverty and Human Development Initiative's Multidimensional Poverty Index was 53.8 percent in 2005-06, which dropped to 16.4 percent in 2019-21. Meanwhile, according to the World Bank's own multidimensional poverty measure, this rate was 15.5 percent in 2022-23.

Major changes have also been observed in the field of employment. Between 2017 and 2023, employment increased by approximately 13.4 crore people, which is nearly double the growth rate of the working-age population. A large share of this increase has come from rural women entering paid employment. Nevertheless, regional and employment-related challenges have also been highlighted in the report. Approximately 57 percent of India's poor population is concentrated in a continuous belt stretching from Uttar Pradesh to West Bengal; therefore, creating productive employment opportunities in these states is crucial for reducing poverty.

Concerning statistics regarding youth unemployment have also emerged. From the first quarter of financial year 2026 to the first quarter of financial year 2027, youth unemployment increased from 14.6 percent to 15.9 percent, with this increase being particularly observed among rural young women. There has also been no significant change in real income, as the employment growth has remained concentrated in relatively low-productivity activities. Additionally, according to a Times of India report, economic inequality is also observed in India, where the top 10 percent of people earn 13 times more income than the bottom 10 percent.

The report has also noted that poverty estimates are based on household consumption surveys. The organization has cautioned that some of the recent gains may reflect improvements in measurement methodology alongside actual welfare improvements.