World Bank Reports India Lifted 496 Million Out of Poverty

The World Bank reported in its October 2026 Poverty and Equity Brief that India lifted approximately 496 million people out of poverty between 2011 and 2023. Extreme poverty dropped from 27.1% to 2.6%, while the population living below the lower-middle-income poverty line of $4.20 a day fell from 57.7% to 16.1%. The bank attributed these gains to strong consumption growth, expanded social transfers such as food subsidies, and increased employment, especially among rural women.

Despite these achievements, the report identifies persistent challenges. Income inequality remains stark, with the top 10% of earners making nearly 13 times more than the bottom 10%. Youth unemployment also rose from 14.6% to 15.9% between FY26 and the first quarter of FY27. Regional disparities are evident in a contiguous poverty belt stretching from Uttar Pradesh to West Bengal, which contains approximately 57% of the poor population.

BJP spokesperson Pradeep Bhandari stated the report demonstrates a global consensus that inclusive growth is happening within India, while MP Tejasvi Surya noted the circumstances surrounding this transformation. The World Bank projects the $4.20-a-day poverty rate will continue to decline, reaching 12.1% by 2028, though the pace of reduction is expected to slow.