India has recorded a substantial decline in poverty over the past decade, with extreme poverty falling from 27.1% in 2011 to 2.6% in 2023, according to a new World Bank report. The assessment describes India's progress as remarkable, placing the country among those that have achieved some of the fastest reductions in poverty globally.
The findings were included in the World Bank's October 2026 Poverty and Equity Brief for India, released on October 30. The report examines changes in both monetary and non-monetary poverty and highlights the scale of improvement recorded between 2011 and 2023.
Nearly 496 Million People Moved Above the Lower Middle-Income Poverty Line
According to the report, the share of India's population living below the Lower Middle-Income Country poverty line of $4.20 per day declined from 57.7% in 2011 to 16.1% in 2023.
The World Bank estimates that this reduction lifted approximately 496 million people above that poverty threshold during the period.
The report also records a steep fall in extreme poverty, measured against the $3-a-day threshold. The proportion of people below this line dropped from 27.1% to 2.6% over the same period.
These figures indicate a major change in the country's measured poverty levels, although the poverty thresholds represent international benchmarks and should not be confused with individual household income targets or domestic poverty measures.
Employment Growth and Government Support Among Key Drivers
The World Bank has linked the reduction in poverty to stronger consumption, rising employment and expanded government support, including food subsidies and other social transfers.
Employment increased by approximately 134 million people between 2017 and 2023, according to the report's findings. Much of this growth was associated with more rural women entering paid work, increasing the number of earning members in some households.
However, the report also points to challenges in the quality of employment. A significant share of new jobs was concentrated in relatively low-productivity activities, while real earnings remained broadly unchanged.
Wage Inequality and Regional Concentration Remain Concerns
Despite the improvement in poverty indicators, income disparities remain substantial. The World Bank reported that median earnings among the top 10% of workers were approximately 13 times those of the bottom 10% in 2023.
Poverty has also become more concentrated geographically. A contiguous belt of States stretching from Uttar Pradesh to West Bengal accounts for around 57% of India's poor population, according to the report.
This suggests that national progress has not been evenly distributed and that some regions and communities continue to face greater economic challenges.
Poverty Expected to Decline Further, but at a Slower Pace
The World Bank expects poverty measured against the $4.20-a-day lower-middle-income threshold to continue declining, although more gradually.
Its projections indicate that the rate could fall from 14.2% in 2026 to 12.1% by 2028. These are projections rather than confirmed outcomes and may change as economic and employment data are updated.
The findings underline the importance of sustaining employment growth, improving access to stable livelihoods and strengthening social support systems. Alongside public policy, sound financial planning and effective institutional management remain important to broader economic development. Organisations seeking professional guidance can explore other professional services.