World Bank’s October 2026 Poverty and Equity Brief

Why in News?

According to the World Bank’s October 2026 Poverty and Equity Brief, India lifted an estimated 496 million people out of poverty between 2011 and 2023. The extreme poverty rate declined from 27.1% to 2.6% during this period.

Key Findings of the Report 

• Extreme poverty declined from 27.1% in 2011 to 2.6% in 2023.
• Poverty measured against the lower-middle-income threshold of USD 4.20 per day (2021 PPP) fell from 57.7% in 2011 to 16.1% in 2023.
• The World Bank described India’s progress as one of the fastest poverty declines in the world.
• Factors Behind Poverty Reduction: The report identified the following major factors:

• Consumption growth: Improvement in household consumption levels.
• Employment growth: Expansion of employment opportunities, particularly for women.
• Social transfers: Increased access to government welfare support, including food subsidies.

Future Poverty Projections

According to World Bank estimates, poverty at the USD 4.20-a-day threshold is projected to decline further.

Year	Projected poverty rate
2026	14.2%
2028	12.1%

Progress in Multidimensional Poverty

Multidimensional poverty considers deprivation in areas beyond income, including health, education and living standards.

• According to the Oxford Poverty and Human Development Initiative (OPHI) Multidimensional Poverty Index (MPI), India’s poverty rate declined from 53.8% in 2005–06 to 16.4% in 2019–21.
• The World Bank’s multidimensional poverty measure stood at 15.5% in 2022–23.

Persistent Challenges

• Regional disparities: Around 57% of India’s poor population remains concentrated in a contiguous geographical belt extending from Uttar Pradesh to West Bengal.
• Employment challenges: Expansion of productive employment opportunities remains essential for sustaining poverty reduction.
• Uneven development: Regional differences in economic opportunities and access to services continue to affect poverty outcomes.

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