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India’s Poverty Rate Drops Sharply from 27% to 2.6%

Between 2011 and 2023, India lifted an estimated 496 million people out of extreme poverty.

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Key Points

5 points

496 million people moved out of extreme poverty between 2011 and 2023.

Extreme‑poverty rate declined from 27.1 % to 2.6 %.

People living on less than United States dollars 4.20 a day dropped from 57.7 % to 16.1 %.

Employment grew by about 134 million jobs, with many new positions for women in rural areas.

Regional disparities persist, with a concentration of poverty in a stretch from Uttar Pradesh to West Bengal.

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The extreme‑poverty share fell from 27.1 % to 2.6 %, and those below the United States dollars 4.20‑a‑day threshold fell from 57.7 % to 16.1 %.

Growth was driven by higher consumption, increased employment—particularly among rural women—and expanded food subsidies.

Nevertheless, large regional gaps remain, especially in a belt from Uttar Pradesh to West Bengal, requiring more job creation.

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8 words

extreme poverty

a condition where people cannot afford basic necessities such as food, shelter, and clothing

consumption

the total amount of goods and services that people purchase and use

subsidies

financial assistance provided by the government to lower the cost of essential items

multidimensional

involving several different factors or aspects at the same time

disparities

significant differences or inequalities between groups or regions

microsimulations

small‑scale computer models used to estimate possible future outcomes

macro-economic

relating to the overall performance and structure of a country's economy

productivity

the rate at which goods or services are produced, especially in relation to the time and resources used

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