The World Bank's October 2026 Poverty and Equity Brief said India has seen one of the fastest poverty declines globally, lifting about 496 million people above the $4.20‑per‑day line between 2011 and 2023.
Officials attribute the shift to a surge in consumption growth—spurred by rising wages and consumer credit—, a jump of 134 million jobs—almost double the growth in the working‑age population—and an expansion of social transfers, notably food subsidies.
Yet the brief notes that the poverty line at $4.20 a day is projected to fall only to 12.1% by 2028, a slowdown that hinges on macroeconomic headwinds.
The report flags a stark regional imbalance: 57% of those still in poverty live in a belt from Uttar Pradesh to West Bengal, making state‑level employment creation urgent. Rural women now make up a growing share of new jobs, though youth unemployment edged up from 14.6% to 15.9% between FY26 and FY27, especially among rural young women.
The findings will inform the upcoming 2027 budget discussions, as the Ministry of Finance drafts revised social safety nets to sustain the deceleration in poverty.