NEW DELHI: World Bank has said that poverty in India, defined at $4.2 a day, will decline from 14.2% in 2026 to 12.1% by 2028.Between 2011 and 2023, it is estimated that the share of the population living below $4.2 a day declined from 57.7% to 16.1%, lifting an estimated 496 million people out of poverty. It said that extreme poverty ($3 a day) declined from 27.1% to 2.6% during this period.“This progress was mainly driven by strong consumption growth; rising employment, especially among women; and expanded social transfers, including food subsidies. As poverty declined, it became increasingly concentrated among households with lower education, fewer assets, limited access to stable employment, and higher dependency ratios. Wage disparities, however, remain pronounced, as median earnings among the top 10% of workers were about 13 times those of the bottom 10% in 2023,” World Bank said in its latest Poverty & Equity brief.Finance minister Nirmala Sitharaman cheered the decline in poverty in the country, pointing out that the report recognised India’s progress as a country with one of the fastest poverty declines in the world.“Under the leadership of PM Narendra Modi, govt’s sustained policy efforts are yielding tangible results, strengthening the foundations for inclusive growth and greater economic opportunity. This is the reason why NDA govt wins people’s trust and mandate of our citizens. We remain committed to building on this progress through productive employment, stronger household incomes and effective delivery of public services, so that aspirations of our people are met,” she posted on X.
World Bank also noted that between 2017 and 2023, employment increased by about 134 million people, nearly twice the growth of the working-age population, with major gains driven by rural women entering paid work and raising the number of earners in households.“Labour market conditions continue to be broadly resilient, with labour force participation and employment rates stable between Q1 FY 2026 and Q1 FY 2027. However, youth unemployment rose from 14.6% to 15.9% between the two quarters, particularly among rural young women. Moreover, real earnings remained broadly unchanged with employment growth concentrated in relatively low-productivity activities,” it said.