How India pulled 500 million people out of poverty, as inequality deepens
Summary
India’s extreme poverty rate fell from 27.1% in 2011 to 2.6% in 2023, and the World Bank estimates that 496 million people moved above its lower-middle-income poverty threshold. The report links the decline to consumption growth, rising employment—especially among women—and expanded social support, while a separate report says India’s income and wealth inequality remain among the world’s highest.Key Facts
- The World Bank measured extreme poverty using a threshold of $3 per person per day.
- The share of India’s population below the $4.20-per-day lower-middle-income poverty threshold fell from 57.7% to 16.1% between 2011 and 2023.
- The World Bank projects the poverty rate at the $4.20 threshold will decline from 14.2% in 2026 to 12.1% by 2028.
- The World Bank cited consumption growth, increased employment, particularly among women, and expanded social transfers, including food subsidies, as drivers of poverty reduction.
- A 2022 World Bank and Chinese Finance Ministry report said China lifted more than 800 million people out of poverty over 40 years.
- The World Bank raised its forecast for India’s economic growth to 7.1%.
- Kerala became the first Indian state to officially declare itself free from extreme poverty last November.
- The 2026 World Inequality Report says income and wealth inequality in India remain among the highest in the world.
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