The World Bank reported that the level of poverty in India, defined as income below $4.2 per day, will decrease from 14.2% in 2026 to 12.1% by 2028.
Between 2011 and 2023, the share of the population living on less than $4.2 per day decreased from 57.7% to 16.1%, which allowed approximately 496 million people to be lifted out of poverty. Furthermore, extreme poverty (income below $3 per day) fell from 27.1% to 2.6% over the same period.
According to the latest World Bank report on poverty and inequality, this progress was primarily driven by strong consumption growth, increased employment, especially among women, and the expansion of social transfers, including food subsidies. However, as poverty levels decline, it has become more concentrated among households with low education levels, few assets, limited access to stable work, and higher dependency ratios. A significant wage gap persists: in 2023, the median earnings of the top 10% of earners were approximately 13 times higher than those of the bottom 10%.
Finance Minister Nirmala Sitharaman welcomed the reduction in the country's poverty rate, noting that the report recognizes India's achievements as a country demonstrating one of the fastest rates of poverty reduction globally. She stated that tangible results are being achieved thanks to the continuous efforts of the government under Prime Minister Narendra Modi, strengthening the foundations for inclusive growth and greater economic opportunities.
Sitharaman added that this contributes to citizens' trust in the NDA government. She emphasized the commitment to further developing this progress through creating productive employment, increasing household incomes, and effectively delivering public services to meet the aspirations of the people.
The World Bank also noted that between 2017 and 2023, employment increased by approximately 134 million people, nearly double the growth in the working-age population. Rural women made the main contribution to this growth by starting paid work, increasing the number of breadwinners in families.
The report states that labor market conditions remain generally stable, with labor force participation and employment figures remaining steady from the first quarter of the 2026 fiscal year to the first quarter of the 2027 fiscal year. Nevertheless, youth unemployment rose from 14.6% to 15.9% between these two quarters, particularly among young rural women. Moreover, real incomes remained largely unchanged, and job growth was concentrated in relatively low-productivity activities.
