India reduces extreme poverty by 97.4% in 12 years, but inequality remains high
India's extreme poverty rate dropped from 27.1% to 2.6% between 2011 and 2023, lifting nearly 500 million people out of poverty.
In Brief
- •India's extreme poverty rate dropped from 27.1% to 2.6% between 2011 and 2023, lifting nearly 500 million people out of poverty.
- •The World Bank attributes this progress to strong consumption growth, rising employment, especially among women, and expanded social transfers.
- •Despite the decline in poverty, India's income and wealth inequality has widened significantly since the early 1990s.
- •The World Bank projects that poverty at the $4.20/day line will fall from 14.2% in 2026 to 12.1% by 2028.
Why It Matters
India's significant reduction in extreme poverty highlights the potential for rapid economic development in low-income countries. However, the persistent inequality suggests that while poverty reduction is achievable, addressing economic disparities remains a critical challenge. This case study could provide valuable insights for other developing nations aiming to replicate India's success in poverty alleviation.
Key Details
- Extreme Poverty Rate (2011)
- 27.1%
- Extreme Poverty Rate (2023)
- 2.6%
- Population Lifted Out of Poverty
- 496 million
- Lower Middle-Income Poverty Rate (2011)
- 57.7%
- Lower Middle-Income Poverty Rate (2023)
- 16.1%
- Projected Poverty Rate (2028)
- 12.1%
Context & Background
India's economic reforms in the early 1990s opened the country's economy, leading to significant economic growth and poverty reduction. The World Bank's Household Consumption Expenditure Surveys (HCES) conducted by the National Sample Survey Organisation (NSSO) are used to determine poverty rates in India.
Original Reporting & Sources
VNews is an independent briefing product. Original reporting remains credited to the following publishers:
This brief was synthesized automatically using attributed third-party reporting. VNews is a digital news publication produced under the VContent Group brand and operated by Francis Vincent Sunday in Ghana, independent from the publishers cited above. Read our AI Transparency Policy and Editorial & Corrections Policy.