YUVA India · Poverty & social inclusion

Poverty in India.

India has made remarkable progress in reducing poverty, but millions of people still face economic insecurity and deprivation. Understanding poverty today means looking beyond income to education, health, employment, housing, basic services and people’s ability to access opportunity.

Understanding poverty

Poverty in India is changing.

India has experienced one of the world’s most significant reductions in poverty over the past decade. Economic growth, improvements in basic services, social protection and greater access to infrastructure have all contributed.

Yet national progress does not mean that every household experiences the same opportunities. Poverty remains deeper in some regions, communities and household circumstances than others.

Modern poverty analysis therefore examines both monetary poverty and multidimensional deprivation, recognising that income alone cannot fully describe whether people can live healthy, educated and secure lives.

Progress and unfinished work
India’s poverty story is no longer simply about how many people are poor. It is increasingly about who remains excluded, why opportunity still differs and how progress can become more durable.

Sustainable poverty reduction requires stronger capabilities, better jobs, accessible services and systems that protect families from shocks.

A decade of change

Poverty has fallen substantially.

The World Bank’s latest India Poverty and Equity assessment compares household consumption data from 2011–12 and 2022–23.

Extreme poverty · 2011–12 27.1% Share of people below the current international extreme-poverty threshold of $3 per person per day.
Extreme poverty · 2022–23 5.3% A major reduction over the decade, based on World Bank estimates using 2021 purchasing power parities.
Below $4.20 · 2011–12 57.7% Share below the lower-middle-income poverty line at the start of the period.
Below $4.20 · 2022–23 23.9% Less than half the 2011–12 proportion, although still representing substantial economic vulnerability.
Poverty lines were updated internationally in 2025. The World Bank now uses $3 per person per day for international extreme poverty and $4.20 for the poverty line typical of lower-middle-income countries, expressed in 2021 purchasing power parity terms.
Lower-middle-income poverty line · 2022–23 23.9% The share of India’s population estimated to live below $4.20 per person per day.
One country, several measures

There is no single poverty number.

Different poverty thresholds answer different questions. The international extreme-poverty line identifies very severe monetary deprivation, while the higher lower-middle- income line captures a broader population with limited economic resources.

India’s National Multidimensional Poverty Index looks beyond money altogether and examines simultaneous disadvantages in health, education and living standards.

Extreme poverty $3/day Current World Bank international extreme-poverty line.
Lower-middle-income $4.20/day Benchmark relevant to lower-middle-income economies.
Multidimensional poverty

Poverty is more than income.

India’s National Multidimensional Poverty Index measures deprivation across health, education and standard of living using twelve indicators.

2015–16 24.85% Share of India’s population identified as multidimensionally poor.
2019–21 14.96% National MPI headcount based on NFHS-5 data.
2022–23 estimate 11.28% NITI Aayog’s estimated further decline after 2019–21.
Dimension 01 Health
Nutrition Child & adolescent mortality Maternal health
Dimension 02 Education
Years of schooling School attendance
Dimension 03 Standard of living
Cooking fuel Sanitation Drinking water Electricity Housing Assets Bank account
Why poverty persists

National progress can coexist with household vulnerability.

Work Insecure livelihoods Employment is one of the strongest pathways out of poverty, but informal work, irregular income and limited social protection can leave working households vulnerable to shocks.
Human development Unequal access to opportunity Differences in educational quality, health, nutrition and skills influence people’s ability to participate fully in economic growth.
Geography Regional disparities Poverty outcomes differ between states, districts, rural areas and cities. National averages can therefore hide substantial local differences.
Resilience Vulnerability to shocks Illness, unemployment, disasters, climate impacts or sudden household expenses can push economically vulnerable families backwards.
Rural & urban India

Poverty has fallen in both, but the gap remains.

World Bank estimates using the $4.20 lower-middle-income poverty line show major reductions in both rural and urban India between 2011–12 and 2022–23.

Rural poverty nevertheless remains considerably higher than urban poverty, reinforcing the importance of place, infrastructure, employment structures and access to services.

Rural · 2011–12 64.9% Below the current $4.20-a-day poverty line.
Rural · 2022–23 27.7% A substantial decline over the decade.
Urban · 2011–12 39.7% Below the current $4.20-a-day poverty line.
Urban · 2022–23 14.3% Also sharply lower than a decade earlier.
What lasting progress requires

Moving out of poverty is one challenge. Staying out is another.

Sustainable poverty reduction requires both economic opportunity and strong foundations that help people develop capabilities and withstand setbacks.

Education Build capability Improve learning, practical skills and pathways from education into opportunity.
Health Protect well-being Reduce the risk that poor health limits education, employment or household security.
Employment Create better livelihoods Expand access to productive, sustainable and increasingly secure work.
Social protection Strengthen resilience Help households withstand unemployment, illness, age, disability and other shocks.
Turn progress into opportunity

Poverty reduction becomes stronger when people can participate in their own future.

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