India has recorded a significant decline in extreme poverty, with the share of its population living below the international poverty line falling from 27.1% in 2011-12 to just 2.6% in 2023-24, according to the World Bank’s October 2026 Poverty and Equity Brief.
The report estimates that approximately 49.6 crore Indians moved above the poverty threshold during this period, describing the decline as one of the fastest poverty reductions in the world.
The World Bank measures extreme poverty using a threshold of $3 per person per day, adjusted for purchasing power differences between countries. For India, this is equivalent to approximately ₹58 per day in 2021 prices.
The decline has been visible across both rural and urban areas. Rural extreme poverty fell from 31% to 3.1%, while the urban rate dropped from 17.4% to 1.4%.
However, the broader picture reveals that financial hardship remains widespread. Around 3.5 crore Indians continue to live in extreme poverty. Using the higher poverty threshold of $4.20 per day, approximately 23.2 crore people still fall below the poverty line. This means millions remain vulnerable despite moving out of extreme poverty.
The World Bank attributes the decline partly to rising household consumption, employment growth and government welfare programmes, including food subsidies.
Looking ahead, the Bank projects that the share of Indians living below the $4.20 threshold could fall further to 12.1% by 2028.
However, challenges remain. Around 57% of India’s poor population is concentrated in a belt stretching from Uttar Pradesh to West Bengal. Expanding employment opportunities, particularly for young people and women, will be crucial to sustaining progress.
While the figures represent a major achievement in poverty reduction, the next challenge is ensuring that higher living standards translate into stable incomes, better jobs and lasting economic security.
