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India Poverty and Equity Brief (October 2026) : World Bank

Kumari Sonali

India Poverty and Equity Brief (October 2026) : World Bank

The World Bank released the India Poverty and Equity Brief (October 2026), highlighting that India has achieved one of the fastest poverty reduction rates globally.

  • However, while absolute monetary poverty has declined, critical macroeconomic vulnerabilities and structural inequalities threaten to undermine this progress.
  • India has made significant progress, with 496 million people lifted out of poverty between 2011 and 2023, driven by economic growth, rising employment and social welfare schemes.
  • Inequality, unemployment, agrarian distress and social exclusion continue to hinder poverty eradication, requiring inclusive growth, better human capital and equitable wealth distribution.

Key Findings of the India Poverty and Equity Brief:

  • Between 2011 and 2023, the share of the population below the Lower Middle-Income poverty line ( USD 4.20/day) fell drastically from 57.7% to 16.1%, successfully lifting an estimated 496 million people out of poverty.
  • Poverty decline is expected to slow down, with projections indicating a drop from 14.2% in 2026 to 12.1% by 2028 (at the USD 4.20 line).
  • Extreme poverty (measured at USD 3.00/day) plummeted from 27.1% to 2.6%, leaving roughly 75.2 million people in extreme poverty by 2023.
  • According to the Oxford Poverty and Human Development Initiative (OPHI), India’s Multidimensional Poverty Index (MPI) poverty rate declined from 53.8% (2005–06) to 16.4% (2019–21).
  • The World Bank’s MPI estimated it at 15.5% in 2022–23.
  • A contiguous belt of states stretching from Uttar Pradesh to West Bengal accounts for about 57% of India’s remaining poor.
  • National poverty eradication heavily depends on generating productive employment in this specific region.
  • Most of the poor remain in rural areas, where poverty sits at 19.3% compared to 8.6% in urban areas, largely due to a lack of non-farm job opportunities and low productivity.
  • Poverty is highest among children aged 0–14 (21.8%), followed by females (16.6%).
  • Poverty affects 21.3% of those with no education, but only 7.4% of those with tertiary education.
  • The report highlights a stark wage disparity, with the median earnings of the top 10% of workers being 13 times that of the bottom 10%. The Gini index stands at 23.0 (2023).
  • Progress was primarily driven by strong domestic consumption growth, rising employment (particularly among rural women), and expanded government social transfers like food subsidies.