India lifted nearly 500 million people out of poverty

During the same period, the rate of extreme poverty in the world’s most populous country fell from 27.1 percent to 2.6 percent.

The report measures extreme poverty using a threshold of $3 a day. The share of Indians living on less than $4.20 a day also declined, from 57.7 percent in 2011 to 16.1 percent in 2023. By this measure, 496 million people moved out of poverty.

The World Bank described the progress as significant. Experts attributed the decline mainly to stronger household consumption, rising employment — particularly among women — and expanded social assistance programmes, including food subsidies.

Poverty reduction efforts in India have spanned several administrations. Former Prime Minister Manmohan Singh introduced a scheme guaranteeing rural residents at least 100 days of employment a year. Since Narendra Modi came to power in 2014, his government has expanded direct cash transfers, free food supplies and housing programmes.

About 800 million people in India currently receive free food grains from the government. Access to piped drinking water in rural households has also increased from 17 percent in August 2019 to more than 80 percent, according to government figures.

However, falling poverty has not resolved the country’s economic inequality. According to the 2026 World Inequality Report, the richest 10 percent of Indians receive about 58 percent of national income, while the bottom 50 percent receive only 15 percent.

Economists say inequality is growing because the benefits of economic growth are not being shared evenly. Unequal access to quality education and healthcare is also widening the social divide.

Despite the progress, 233 million people in India still live on less than $4.20 a day. Some economists have also raised questions about the long-term financial sustainability of the free food programme and its impact on nutritional outcomes.

Experts argue that further poverty reduction will require not only continued economic growth but also greater public investment in healthcare and education, alongside better mechanisms for redistributing income.