India removed approximately 496 million individuals from poverty between 2011 and 2023, resulting the percentage of the population in extreme poverty to fall significantly from 27.1 per cent to 2.6 per cent, according to the World Bank’s Poverty and Equity Brief from October 2026.
The report indicated that the percentage of individuals living below the lower-middle-income poverty threshold of USD 4.20 daily, calculated using 2021 purchasing power parity (PPP), decreased from 57.7 per cent to 16.1 per cent over the period.
Describing the advancements as ‘among the quickest reductions in poverty globally,’ the World Bank noted that India had shown enhancements in both financial and non-financial indicators of poverty.
The report connected the drop primarily to robust consumption growth, increasing employment, especially among women, and heightened social transfers, such as food assistance.
Poverty is expected to decrease more, but at a reduced rate. The World Bank’s estimates suggest that the poverty rate at the USD 4.20-a-day level may decrease from 14.2 per cent in 2026 to 12.1 per cent by 2028.
However, it warned that these are indicatives estimate derived from microsimulations and may vary as fresh labour market and macroeconomic information is released.
Non-financial poverty has likewise decreased notably. The report shows that the poverty rate assessed using the Oxford Poverty and Human Development Initiative’s Multidimensional Poverty Index decreased from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21.
The World Bank’s multidimensional poverty metric was recorded at 15.5 per cent in 2022-23.
The report emphasized ongoing regional and job-related challenges. Approximately 57 per cent of India’s impoverished population is located in a continuous area extending from Uttar Pradesh to West Bengal, highlighting the need for productive job opportunities in these states to enhance poverty alleviation.
Employment rose by approximately 134 million individuals from 2017 to 2023, nearly double the increase in the working-age population. A significant portion of this rise resulted from women in rural areas taking up paid jobs.
Youth unemployment increased from 14.6 per cent to 15.9 per cent from the first quarters of FY26 to FY27, especially among young women in rural areas. Real wages also stayed largely the same, with job growth focused on comparatively low-productivity sectors.
The report highlighted that poverty estimates rely on household consumption surveys and warned that recent gains might indicate better measurement techniques in addition to real welfare advancements.
