India’s Poverty Reduction and Global Economic Challenges
Eduteria Insights · 31 Oct 2026
India’s Poverty Reduction: World Bank Report
496 million people lifted out of poverty between 2011 and 2023.
Poverty rate (below $4.20/day) declined from 57.7% to 16.1%.
Extreme poverty (below $2.15/day) fell from 27.1% to 2.6%.
Rural-urban extreme poverty gap narrowed from 7.7 to 1.7 percentage points.
Gini coefficient declined from 28.8 to 25.1, indicating reduced income inequality.
Five states—Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh—accounted for nearly two-thirds of extreme poverty reduction.
Poverty is projected to decline further by 2028.
Significance: Rising disposable incomes can boost domestic demand, consumption, manufacturing and services.
Major concerns
Housing affordability.
Energy prices and inflation.
Youth unemployment and underemployment.
Stagnant real incomes and pressure on public services.
Key contributing factors: COVID-19 disruptions, Russia–Ukraine war and US-driven trade tensions.
Suggested measures
Investment in education, healthcare, job quality and affordable housing.
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