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Key Points

6 points
1

Extreme poverty fell from 27.1% to 2.6% (2011‑2023).

2

About 496 million people moved out of extreme poverty.

3

Employment grew, especially for rural women.

4

Food subsidies provided essential support.

5

Youth unemployment rose slightly; regional gaps persist.

6

Projections show slower decline to around 12% by 2028.

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Summary

The reduction is linked to strong consumption growth, increased employment—particularly among women—and expanded food subsidy programmes.

While overall poverty continues to fall, challenges remain, such as higher youth unemployment and regional concentration of poverty in states from Uttar Pradesh to West Bengal.

Future forecasts suggest the poverty rate will keep decreasing but at a slower pace, highlighting the need for sustained job creation and better measurement.

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New Words to Learn

6 words
extreme poverty
Living with less than about four dollars and twenty cents a day, not enough for basic needs.
consumption growth
People buying more goods and services, which helps the economy.
food subsidy
Government assistance that lowers the cost of food for families.
regional disparities
Differences in wealth and job opportunities between different parts of the country.
microsimulation
A detailed computer model that predicts how changes affect many small groups of people.
purchasing power parity
A way to compare how much money can buy in different countries, adjusting for price differences.
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