Introduction

• World Bank’s October 2026 Poverty and Equity Brief highlights India's rapid poverty reduction.
• Poverty below the $4.20/day line declined from 57.7% (2011) to 16.1% (2023), lifting 496 million people out of poverty.

Factors Behind Poverty Reduction

• Economic growth → Expansion of services + manufacturing + infrastructure.
• Social protection → Food subsidies + employment guarantees + housing + health insurance.
• Basic amenities → Improved access to sanitation + electricity + drinking water + clean cooking fuel.
• Financial inclusion → Jan Dhan accounts + DBT + access to formal banking.
• Human development → Better access to healthcare + education + nutrition.

Persistent Challenges

• Income inequality → Top 10% workers earn 13 times the median earnings of bottom 10%.
• Regional disparity → UP-to-West Bengal belt accounts for around 57% of India's poor.
• Employment insecurity → Informal jobs + low wages + inadequate social security.
• Multidimensional poverty → Gaps in nutrition + education + healthcare.
• Gender inequality → Unpaid care burden + limited access to assets and formal employment.
• Measurement issues → Different poverty lines and methodologies produce varying estimates.

Reforms / Way Forward

• Employment-led growth → Promote labour-intensive sectors + MSMEs.
• Human capital → Strengthen public education + healthcare + vocational training.
• Women empowerment → Expand SHG entrepreneurship + credit + market access.
• Targeted welfare → Improve DBT + social audits + grievance redressal.
• Regional development → Prioritise lagging districts through infrastructure + livelihood programmes.
• Better measurement → Regular consumption surveys + multidimensional poverty indicators.

Conclusion

• India must move from poverty reduction to poverty prevention and inclusive prosperity through productive employment, quality public services and equitable opportunities, supporting the vision of Viksit Bharat 2047.