India records major progress in fight against poverty

India has made significant progress in reducing poverty, with nearly 496 million people moving above the World Bank’s lower-middle-income poverty threshold between 2011–12 and 2023–24.

The gains point to a substantial improvement in the living conditions of millions of households and mark a major shift in the country’s socioeconomic landscape. According to a World Bank assessment cited in the report, the proportion of India’s population living below the $4.20-a-day poverty line declined from 57.7 per cent in 2011–12 to 16.1 per cent in 2023–24.

The reduction in extreme poverty has been equally notable. The share of people living on less than $3 a day fell from 27.1 per cent to 2.6 per cent over the same period, reflecting improved access to basic necessities and greater household economic security.

Progress has been recorded in both rural and urban areas. Rural extreme poverty dropped from 31 per cent to 3.1 per cent, while the urban rate declined from 17.4 per cent to 1.4 per cent.

The figures indicate that the gains have extended beyond major cities to rural communities, which have traditionally faced deeper economic disadvantages. The scale of the decline also highlights the impact of sustained efforts to expand social protection, improve infrastructure and increase access to essential services.

Several initiatives have contributed to this progress, including expanded financial inclusion, welfare programmes and investment in public infrastructure. Wider access to banking through the Pradhan Mantri Jan Dhan Yojana, Aadhaar-linked direct benefit transfers, subsidised food distribution, rural electrification, sanitation facilities and improved digital connectivity have helped strengthen the economic security of millions of households.

The distribution of free food grains to vulnerable families has also played an important role in protecting households against food insecurity and economic shocks. Meanwhile, India’s expanding economy has provided resources for infrastructure development, public services and social protection.

The progress reflects the cumulative impact of economic reforms, improvements in agriculture, expanding markets and welfare initiatives introduced by successive governments.

The administration of Prime Minister Narendra Modi has accelerated welfare delivery and the development of digital public infrastructure. However, the reduction in poverty has also been shaped by policies and reforms spanning several administrations, making the achievement part of a longer national development journey.

The gains are particularly significant given India’s population size and the complexity of addressing poverty across regions with different economic and social conditions. For a country accounting for nearly one-fifth of the world’s population, lifting almost half a billion people above a major international poverty threshold represents a substantial socioeconomic shift.

Despite the progress, challenges remain. The World Bank estimates that approximately 35 million people in India continue to live in extreme poverty, while around 232 million remain below the broader $4.20-a-day threshold.

Crossing an internationally defined poverty line does not necessarily mean that a household has achieved lasting financial security. Many families remain vulnerable to rising healthcare costs, insecure employment, inadequate housing and limited access to quality education. A sudden illness, loss of income or other economic shock can still push households back into hardship.

The next phase of India’s development will therefore require consolidating the gains already made while expanding opportunities for more people to participate in economic growth.

Stronger manufacturing, productive employment, improved education, affordable healthcare and greater participation by women and young people will be important in sustaining the progress. Continued investment in infrastructure, skills development and social protection will also help ensure that households moving out of poverty can build more secure livelihoods.

The reported decline in poverty demonstrates that sustained economic growth, public investment and targeted welfare interventions can make a substantial difference to household living conditions.

India has made considerable progress in its fight against poverty. The priority now is to protect these gains, extend opportunities to those still living in hardship and ensure that the country’s economic growth translates into lasting improvements in the lives of its people.