India has recorded one of the largest reductions in poverty in modern history, with nearly 496 million people moving above the World Bank’s lower-middle-income poverty threshold between 2011–12 and 2023–24.
According to World Bank estimates, the proportion of Indians living below the USD 4.20-a-day poverty threshold declined from 57.7 percent to 16.1 percent during the period, reflecting significant improvements in living standards and economic opportunities.
Extreme poverty also fell sharply, with the share of people living on less than USD 3 per day dropping from 27.1 percent to just 2.6 percent.
The transformation has reached both rural and urban communities. Rural extreme poverty declined from 31 percent to 3.1 percent, while urban extreme poverty fell from 17.4 percent to 1.4 percent.
India’s progress has been supported by sustained economic growth, infrastructure development, financial inclusion and government welfare programmes.
Under Prime Minister Narendra Modi’s administration, initiatives including expanded banking access, Aadhaar-linked direct benefit transfers, free food grain distribution, rural electrification and improved digital connectivity have strengthened economic opportunities and social protection.
The achievement also reflects decades of economic reforms and development policies implemented by successive governments.
Despite the progress, approximately 35 million Indians continue to live in extreme poverty, while around 232 million remain below the broader USD 4.20-a-day threshold.
As India pursues its ambition of becoming a developed nation by 2047, its next major challenge will be transforming poverty reduction into lasting prosperity through job creation, better education, affordable healthcare and sustainable economic opportunities.
The movement of nearly half a billion people above a major international poverty threshold represents a significant milestone, highlighting India’s growing economic transformation and its potential to improve living standards for millions more.
