Poverty in India · Data & evidence

Poverty in India: Facts & Figures.

Explore current data on monetary poverty, multidimensional deprivation, rural and urban differences, regional concentration, inequality and employment in India.

Reading the numbers

India has more than one valid measure of poverty.

Monetary poverty measures whether household consumption falls below a specified threshold. The World Bank publishes internationally comparable poverty lines using purchasing power parity.

India’s National Multidimensional Poverty Index uses a different approach. It considers simultaneous deprivation across health, education and standard of living.

These measures answer different questions and should not be treated as interchangeable.

Important: the international poverty lines changed in 2025. The World Bank now uses 2021 purchasing power parities. The international extreme-poverty line is $3 per person per day and the lower-middle-income line is $4.20.
National dashboard

India poverty indicators at a glance.

Extreme poverty 5.3% Population below $3 per person per day in 2022–23.
Lower-middle-income line 23.9% Population below $4.20 per person per day in 2022–23.
National MPI 14.96% Measured multidimensional poverty headcount using NFHS-5 data for 2019–21.
National MPI estimate 11.28% NITI Aayog’s projected multidimensional poverty headcount for 2022–23.
Monetary poverty

A substantial decline between 2011–12 and 2022–23.

The World Bank’s comparable consumption-based estimates show major reductions at both current international poverty thresholds.

Poverty measure 2011–12 2022–23 Change
$3 international extreme-poverty line 27.1% 5.3% −21.8 percentage points
$4.20 lower-middle-income poverty line 57.7% 23.9% −33.8 percentage points
These are internationally comparable World Bank measures. They should not be confused with India’s earlier national poverty line or with the National Multidimensional Poverty Index.
Rural & urban India

Poverty declined strongly in both settings.

At the $4.20 lower-middle-income poverty line, rural poverty remains higher than urban poverty, although both fell sharply over the decade.

Rural · 2011–12 64.9% Share of the rural population below the $4.20 poverty line.
Rural · 2022–23 27.7% More than halving the rural poverty rate over the period.
Urban · 2011–12 39.7% Share of the urban population below the $4.20 poverty line.
Urban · 2022–23 14.3% Urban poverty also declined substantially.
National MPI · 2022–23 11.28% NITI Aayog’s estimated multidimensional poverty headcount for 2022–23. This is a projection rather than a new directly observed NFHS measurement.
Multidimensional poverty

Measuring deprivation beyond money.

The National Multidimensional Poverty Index identifies people experiencing simultaneous deprivation across health, education and standard of living.

NITI Aayog’s measured headcount fell from 24.85% in 2015–16 to 14.96% in 2019–21.

A subsequent NITI Aayog discussion paper estimates that multidimensional poverty declined further to 11.28% in 2022–23.

2015–16 24.85% Measured National MPI headcount.
2019–21 14.96% Measured using NFHS-5 data.
2022–23 11.28% Estimated by NITI Aayog.
2013–14 to 2022–23 24.82 crore Estimated number of people who moved out of multidimensional poverty.
What the National MPI measures

Twelve indicators across three dimensions.

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
Geography of poverty

Poverty is increasingly concentrated.

National averages hide substantial differences between states.

The World Bank reports that almost half of India’s people living below the $4.20 line were concentrated in just three states in 2022–23.

This makes place an important part of poverty policy. Economic opportunity, public services, infrastructure and labour markets differ considerably across India.

Three states 46% Share of India’s poor living in Uttar Pradesh, Bihar and Maharashtra in 2022–23.
Ten lagging states 72% Share of India’s poor concentrated in ten states with poverty rates above the national average.
States / UTs 13 Number with poverty rates above the national $4.20-line average of 23.9%.
MPI range <1% to 35% World Bank multidimensional poverty estimates range from below 1% in Kerala to around 35% in Bihar.
Poverty & work

Labour-market progress has not removed every vulnerability.

Employment has grown, but job quality, skills matching and economic participation continue to shape how securely people benefit from India’s growth.

Tertiary-educated youth 29% Unemployment rate among tertiary-educated youth in 2023–24 according to the World Bank brief.
Rural paid employment 53% Share accounted for by self-employment in rural areas by 2023–24.
Unpaid work 16.5% Share of jobs represented by unpaid work, highlighting continuing concerns around job quality.
Working-age population ~0.5bn Nearly half a billion working-age Indians remain unemployed or economically inactive.
Poverty & inequality

Poverty reduction and inequality are not the same thing.

A country can reduce poverty while still experiencing large differences in income, wealth or earnings.

The World Bank’s consumption-based measures suggest lower inequality in 2022–23 than in 2011–12, while other datasets based on income indicate substantially greater inequality.

Different datasets measure different concepts, so inequality figures should be interpreted with care.

Consumption Gini · 2011–12 28.8 World Bank consumption-based inequality measure.
Consumption Gini · 2022–23 25.5 Lower than the comparable 2011–12 estimate.
Earnings gap 13× Median earnings of the top 10% were thirteen times those of the bottom 10% in 2023–24.
Measurement Matters Consumption, income and wealth datasets can produce very different pictures of inequality.
Beyond the numbers

Data describes the problem. People create the response.

Volunteer, donate or partner with YUVA India to support education, health, empowerment and employment opportunities for children and young people.