496 Million Lifted Out of Poverty: FM Sitharaman Hails World Bank Report
World Bank data shows India's poverty rate plummeted from 57.7% to 16.1%. FM Nirmala Sitharaman hails this as a win for the NDA government.
In a massive boost to India's economic narrative, a recent report by the World Bank reveals a staggering decline in poverty levels across the country. Between 2011 and 2023, approximately 49.6 crore (496 million) people moved above the lower-middle-income poverty line, a shift that Union Finance Minister Nirmala Sitharaman says explains why the NDA government continues to win the trust and mandate of the citizens.
The Numbers: A Sharp Decline in Poverty
According to the World Bank's October 2026 Poverty & Equity Brief, India has witnessed a dramatic transformation in its poverty metrics. The report utilizes 2021 purchasing power parity (PPP) to measure these shifts:
- Lower-Middle-Income Poverty: The share of the population living below the USD 4.20 per day line plummeted from 57.7 per cent in 2011 to 16.1 per cent in 2023.
- Extreme Poverty: Those living below the USD 3.00 per day threshold saw an even steeper decline, dropping from 27.1 per cent to just 2.6 per cent during the same period.
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, took to X to celebrate these findings, attributing the success to the leadership of Prime Minister Narendra Modi. She emphasized that sustained policy efforts are creating a foundation for inclusive growth and greater economic opportunities for all.
“This is the reason why NDA govt wins people’s trust and mandate of our citizens,” Sitharaman stated, adding that the government remains committed to enhancing household incomes and public service delivery.
What Drove This Change?
The World Bank didn't just provide the numbers; it analyzed the drivers behind this socio-economic shift. The report credits several key factors for the reduction in poverty:
- Consumption and Employment: Strong growth in consumption and a rise in employment opportunities played a pivotal role.
- Women in the Workforce: A significant portion of the gain was driven by rural women entering paid work, which increased the number of earners within a single household.
- Social Safety Nets: Expanded social transfers, particularly food subsidies, provided a critical cushion for the vulnerable.
- Infrastructure: Access to electricity across the nation climbed to an impressive 99 per cent, based on 2022 survey data.
Employment Surge
The report highlights a massive expansion in the workforce, noting that employment figures grew by 13.4 crore between 2017 and 2023. This growth is nearly double the growth rate of the working-age population, signaling a robust increase in job creation.
Beyond the Money: Multidimensional Poverty
The progress isn't limited to income alone. The World Bank index on non-monetary (multidimensional) poverty shows a steep downward trend:
- 2005–06: 53.8 per cent
- 2019–21: 16.4 per cent
- 2022–23: 15.5 per cent
The Road Ahead: Challenges and Projections
While the progress is historic, the World Bank notes that the decline in poverty is expected to continue more gradually. The poverty rate at the USD 4.20/day line is projected to fall from 14.2 per cent in 2026 to 12.1 per cent by 2028.
Remaining Hurdles
Despite the overall success, the report points out persistent disparities that the government must address:
- Wage Gap: A significant divide remains, with median earnings of the top 10 per cent of workers being roughly 13 times higher than those of the bottom 10 per cent in 2023.
- Regional Concentration: A contiguous belt stretching from Uttar Pradesh to West Bengal accounts for about 57 per cent of the remaining poor population. The report suggests that future national declines will depend heavily on expanding productive employment specifically in these regions.