India records one of world’s fastest poverty declines: World Bank

New Delhi: India’s extreme poverty rate dropped sharply to 2.6 per cent in 2023 from 27.1 per cent in 2011, with the country lifting an estimated 496 million people out of poverty, a World Bank report said.

The World Bank’s report titled ‘India Poverty and Equity Brief: October 2026’ said the poverty estimates are based on the lower middle-income country threshold of USD 4.20 per day and the extreme poverty threshold of USD 3 per day, measured at 2021 purchasing power parity (PPP).

Over the past decade, India has made remarkable progress in reducing poverty across both monetary and non-monetary dimensions, recording “one of the fastest poverty declines” in the world, it said.

“Between 2011 and 2023, the share of the population living below the Lower Middle-Income Country line (USD 4.20/day, 2021 PPP) fell from 57.7 per cent to 16.1 per cent, lifting an estimated 496 million people out of poverty, while extreme poverty (USD 3/day) declined from 27.1 per cent to 2.6 per cent,” it said.

The report further said that poverty is projected to continue declining, albeit more gradually, with the poverty rate at the USD 4.20/day line expected to fall from 14.2 per cent in 2026 to 12.1 per cent by 2028. These indicative microsimulation-based projections will be updated as labour market and macroeconomic data are revised, or new data becomes available.

In a post on X, Finance Minister Nirmala Sitharaman said the World Bank identifies strong consumption growth, rising employment, especially among women, and expanded social transfers, including food subsidies, as major drivers.

She said that under the leadership of Prime Minister Narendra Modi, the government’s sustained policy efforts are yielding tangible results, strengthening the foundations for inclusive growth and greater economic opportunity.

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