​India has achieved a significant milestone in poverty reduction over the past decade. According to a recent World Bank report, between 2011–12 and 2022–23, approximately 171 million people were lifted out of extreme poverty—defined as living on less than $2.15 per day. This marks a substantial decline in the extreme poverty rate from 16.2% to 2.3% during this period .​

When considering the broader poverty line of $3.65 per day, which corresponds to the lower-middle-income threshold, the reduction is even more pronounced. Poverty under this measure fell from 61.8% to 28.1%, resulting in 378 million individuals moving above this line .​

The decline in poverty was more significant in rural areas, where poverty rates dropped from 69% to 32.5%, compared to urban areas, which saw a decrease from 43.5% to 17.2%. This narrowing of the rural-urban poverty gap from 25 to 15 percentage points indicates progress towards reducing regional disparities .​

The World Bank also highlighted that employment growth in India has outpaced the expansion of the working-age population, suggesting that job creation has played a pivotal role in poverty alleviation .

However, challenges persist. Despite improvements in consumption inequality, income inequality remains a concern. In 2023–24, the median earnings of the top 10% were 13 times higher than those of the bottom 10%, indicating that wage disparities continue to be a significant issue .​

Overall, India’s progress in reducing poverty is noteworthy, but sustained efforts are required to address income inequality and ensure inclusive economic growth.

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