India Records One Of World’s Sharpest Poverty Declines: Extreme Poverty Falls From 27.1% To 2.6% In 12 Years, 496 Million Lifted World Bank

NEW DELHI: India has recorded one of the sharpest declines in extreme poverty globally, with the proportion of its population living in extreme poverty falling from 27.1 per cent in 2011 to 2.6 per cent in 2023, according to the World Bank's October 2026 Poverty and Equity Brief. An estimated 496 million people were lifted out of extreme poverty during the 12-year period, the report said.

 Finance Minister Nirmala Sitharaman shared the findings Thursday, highlighting the factors identified by the World Bank as key drivers of the decline.

Key Findings (World Bank October 2026 Brief):

Extreme poverty defined as $3.00/day at 2021 PPP (earlier $2.15). Down 27.1% (2011) → 2.6% (2023).

Lower-middle-income poverty $4.20/day: Down 57.7% → 16.1% → 496 million moved out. ∼49.6 crore Indians.

Projection:At $4.20 line, poverty rate to fall from 14.2% in 2026 to 12.1% by 2028, albeit slower pace. Estimates via microsimulation, may change with new data.

Employment:*134 million jobs added 2017-2023, nearly twice working-age population growth. Key driver, especially female employment.

Multidimensional: Oxford/UNDP MPI (OPHI) down 53.8% (2005-06) to 16.4% (2019-21). World Bank’s own multidimensional poverty 15.5% in 2022-23.

Consumption + Welfare: Strong consumption growth + expanded social transfers including PM Garib Kalyan Anna Yojana food subsidies cited.

Caveats Flagged By World Bank:

 Estimates based on household consumption surveys (HCES 2022-23, PLFS). May reflect measurement improvements alongside real welfare gains. Surveys may undercount wealthier households, understating inequality.

 Regional concentration: ∼57% of poor live in contiguous belt stretching from Uttar Pradesh to West Bengal — needs productive jobs.

 Inequality: Median earnings top 10% workers ∼13 times bottom 10% in 2023. Daily earnings threshold $3 ≈ Rs 285.

Youth unemployment rising: 14.6% to 15.9% between Q1 FY26-FY27, rural young women particularly affected. Stagnant real wages, low-productivity jobs flagged.

Finance Minister: Posted report, said “India’s remarkable progress due to sustained policy efforts, strong consumption, employment, especially among women, and expanded social transfers.”

Quote:World Bank  “Over the past decade, India has made remarkable progress in reducing poverty across both monetary and non-monetary dimensions, recording one of the fastest poverty declines in the world.”