India has made ‘remarkable progress’ in reducing poverty: World Bank

View of the World Bank. File | Photo credit: The Hindu

India has made “remarkable progress” in reducing poverty in both monetary and non-monetary dimensions over the past decade, the World Bank said in a new report, adding that the country has seen one of the fastest poverty reductions in the world.

“Between 2011 and 2023, the share of the population living below the country’s lower-middle income threshold ($4.2/day) fell from 57.7% to 16.1%, an estimated 496 million people lifted out of poverty, while extreme poverty ($3.00/day) fell from 27.1% to 26%026, the World Bank reported in October on Poverty 2.6%026.The Equity Brief for India was released on Friday (October 30, 2026).

It also said it expects poverty to continue to decline “albeit more slowly,” with the poverty rate measured by the $4.20/day line expected to fall from 14.2% in 2026 to 12.1% by 2028.

“In terms of non-monetary dimensions, as measured by the Oxford Poverty and Human Development Initiative (OPHI) Multidimensional Poverty Index (MPI), poverty fell sharply from 53.8% in 2005-06 to 16.4% in 2019-21, with the World Bank MPI measuring 15.5% in 202323.

FM welcomes the findings

Finance Minister Nirmala Sitharaman welcomed the findings and in a post on social media highlighted various positive aspects revealed by the data.

“The World Bank identifies strong consumption growth, rising employment – especially among women – and expanded social transfers, including food subsidies, as the main drivers,” Sitharaman said.

“Under the leadership of Hon’ble PM Shri @narendramodi, the government’s sustained policy efforts are yielding tangible results, strengthening the foundations for inclusive growth and greater economic opportunity,” she added.

The World Bank’s October 2026 Poverty and Equity Report notes India’s progress as one of the fastest declining poverty rates in the world. The report highlights several significant gains: ✅ 49.6 million people moved above the poverty line between 2011 and 2023 with a lower median income of $4.20 a day, with the poverty rate falling from 57.7% to 16.1%. ✅ Extreme poverty decreased from 27.1% to 2.6%, measured at $3 a day, over the same period. Both monetary poverty lines use 2021 purchasing power parity. ✅ Employment increased by 13.4 million people between 2017 and 2023, almost double the increase in the working-age population. ✅ Rural women accounted for a large part of the increase in employment, entering paid work and increasing the number of wage earners in their households. ✅ Both rural and urban households have seen substantial increases in well-being, with faster progress in rural India narrowing the rural-urban divide. ✅ Access to electricity has reached 99% of the population, according to survey data from the 2022 report. The World Bank cites strong consumption growth, rising employment – ​​especially among women – and expanded social transfers, including food subsidies, as the main drivers. Under the leadership of Hon’ble PM Shri @narendramodi , the Government’s sustained policy efforts are yielding tangible results, strengthening the foundations for inclusive growth and greater economic opportunity. This is why the NDA government is gaining the trust of the people and the mandate of our citizens. We remain committed to building on this progress through productive employment, higher household incomes and effective public service delivery to meet the aspirations of our people.

— Nirmala Sitharaman (@nsitharaman) October 30, 2026

Wage differences

The World Bank report further states that as poverty has declined, poverty has been concentrated among households with less education, fewer assets, limited access to stable employment, and higher levels of dependency.

“However, wage gaps remain significant, with median earnings among the top 10% of workers in 2023 about 13 times higher than the bottom 10%,” the report said.

“Poverty is also increasingly concentrated geographically,” he added. “While living standards have improved in most states, households in a continuous belt stretching from Uttar Pradesh to West Bengal make up about 57% of India’s poor population.”

Youth unemployment

The report goes on to say that between 2017 and 2023, employment grew by around 134 million people, nearly double the growth in the working-age population, with much of the gain coming from rural women entering paid work and increasing the number of earners per household.

“However, youth unemployment rose from 14.6% to 15.9% between the two quarters (Q1 FY2026 and Q1 FY2027), particularly among young women in rural areas,” the World Bank pointed out. “Furthermore, real earnings remained broadly unchanged, with employment growth concentrated in relatively low-productivity activities.”

Published – 30 Oct 2026 22:28 IST