World Bank: India Lifted 496 Million People Out of Extreme Poverty in 12 Years

India lifted an estimated 496 million people out of poverty between 2011 and 2023, with the share of the population living in extreme poverty falling from 27.1 per cent to 2.6 per cent, according to the World Bank's Poverty and Equity Brief for October 2026.

The findings are based on household consumption surveys. Poverty lines are expressed in purchasing power parity (PPP) terms, a method that adjusts for differences in the cost of living across countries so that comparisons reflect what a given amount of money can actually buy.

Beyond extreme poverty, the report said the share of Indians living below the lower-middle-income poverty line of USD 4.20 per day, measured at 2021 PPP, also declined sharply — from 57.7 per cent to 16.1 per cent over the same period. This threshold is significantly higher than the extreme poverty line and captures people who remain economically vulnerable even after exiting the worst deprivation.

The World Bank described the progress as "one of the fastest poverty declines in the world", noting that India recorded improvements on both monetary and non-monetary measures of poverty.

The report attributed the decline mainly to strong consumption growth, rising employment — particularly among women — and expanded social transfers, including food subsidies.

Poverty is expected to continue falling, though at a slower pace. World Bank projections indicate that the poverty rate at the USD 4.20-a-day threshold could come down from 14.2 per cent in 2026 to 12.1 per cent by 2028. The Bank cautioned that these are indicative estimates derived from microsimulations and could change as new labour market and macroeconomic data become available.

Non-monetary poverty has declined significantly as well. The report said the Multidimensional Poverty Index of the Oxford Poverty and Human Development Initiative fell from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21. This index measures deprivations in health, education and living standards rather than income alone. The World Bank's own multidimensional poverty measure stood at 15.5 per cent in 2022-23.

The report, however, flagged persistent regional and employment-related challenges. Around 57 per cent of India's poor population is concentrated in a contiguous belt stretching from Uttar Pradesh to West Bengal, which the Bank said makes the creation of productive employment opportunities in these states important for further poverty reduction.

Employment expanded by around 134 million people between 2017 and 2023, nearly twice the growth in the working-age population. Much of this increase came from rural women entering paid employment.

At the same time, youth unemployment rose from 14.6 per cent to 15.9 per cent between the first quarters of FY26 and FY27, with rural young women particularly affected. Real earnings remained broadly unchanged, and employment growth was concentrated in relatively low-productivity activities — a pattern that limits how much additional income such jobs generate.

The report also noted a measurement caveat: because poverty estimates rely on household consumption surveys, some of the recent gains may reflect improvements in how data is collected alongside genuine improvements in welfare. The 496 million figure is an estimate, and the Bank's projections remain subject to revision as fresh survey and macroeconomic data emerge.