World Bank: India's Extreme Poverty Fell to 2.6% in 2023 From 27.1% in 2011
The World Bank's October 2026 Poverty and Equity Brief for India says the country saw one of the fastest falls in poverty in the world.
Extreme poverty (people living on less than $3.00 a day, at 2021 purchasing power parity) fell from 27.1% in 2011 to 2.6% in 2023. About 496 million people moved out of poverty in this period.
At the higher lower-middle-income poverty line of $4.20 a day, the poverty rate fell from 57.7% to 16.1% over the same period. The Brief projects it at 14.2% in 2026 and 12.1% by 2028, a slower pace of decline.
The Brief links the fall to rising consumption, more employment and larger government transfers such as food subsidies. About 134 million more people found work between 2017 and 2023, nearly twice the growth of the working-age population, largely because more rural women entered paid work.
It also lists concerns: real wages stayed broadly flat, much new work is in low-productivity activities, and youth unemployment rose from 14.6% to 15.9% between Q1 FY26 and Q1 FY27. About 57% of India's poor live in one continuous belt from Uttar Pradesh to West Bengal.
The Brief cautions that part of the recent gain may reflect better measurement (newer consumption surveys) and not only better living standards.
Poverty Measurement in India: Methods and Debates
Poverty measurement means deciding who counts as poor and how many such people there are. Most often this is done with a poverty line: a fixed amount of money a person needs each day or month for basic needs. Anyone whose spending falls below it is counted as poor. India measures spending (consumption), not income, because spending is easier to record and is more stable from month to month.
The 2.6% figure uses the $3.00-a-day line and the newer consumption surveys. The same Brief shows that at $4.20 a day about 16% of Indians were still poor in 2023, which is why the choice of poverty line matters so much.
Purchasing Power Parity (PPP): Nominal GDP vs PPP Rankings
Purchasing power parity (PPP) is a way of converting money between countries after adjusting for the fact that the same amount buys different amounts in different places. A meal or a bus ride costs much less in India than in the US. So "$3 a day at PPP" does not mean ₹3 × the market exchange rate. It means the amount of rupees that buys in India what $3 buys in the US.
The $3.00 and $4.20 lines are PPP dollars. They let the World Bank compare poverty in India with poverty in every other country on the same basis.
Multidimensional Poverty Index (MPI): Measuring Poverty Beyond Income
The Multidimensional Poverty Index (MPI) measures poverty by what people actually lack, not only by their money. The Global MPI checks 10 indicators in three areas: health, education and living standards. A person who is deprived in at least one-third of the weighted indicators is counted as multidimensionally poor.
The Brief reports both money-based poverty and multidimensional poverty. Both show a large fall, which gives the finding more weight than one measure would alone.
- Report: World Bank Poverty and Equity Brief, India, October 2026
- Extreme poverty ($3.00/day, 2021 PPP): 27.1% (2011) to 2.6% (2023)
- People lifted out of poverty, 2011 to 2023: about 496 million
- Lower-middle-income line ($4.20/day): 57.7% to 16.1%; projected 14.2% (2026), 12.1% (2028)
- Upper-middle-income line: $8.30/day (2021 PPP)
- Employment: about 134 million more people employed, 2017 to 2023
- Youth unemployment: 14.6% to 15.9% (Q1 FY26 to Q1 FY27)
- About 57% of India's poor live in the belt from Uttar Pradesh to West Bengal
- Global MPI (OPHI): 53.8% (2005-06) to 16.4% (2019-21); World Bank multidimensional measure: 15.5% (2022-23)
- World Bank poverty lines updated in June 2025 (2017 PPP to 2021 PPP)