·The Hindu·15 marks·250–350 wordsEconomySociety

India's decline in extreme poverty has been one of the fastest globally, yet inequality and regional concentration of poverty persist. Critically examine.

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In this answer
  1. Achievements: rapid, broad-based decline
  2. Persisting inequality
  3. Regional concentration
  4. Critical caveats

The World Bank's Poverty and Equity Brief (October 2026) reports that extreme poverty ($3.00/day, 2021 PPP) in India fell from 27.1% in 2011 to 2.6% in 2023 [1]. This is a real achievement. However, the gains are uneven, and it is not certain exactly how large the fall was.

Achievements: rapid, broad-based decline

  • Monetary: poverty at the $4.20 lower-middle-income (LMIC) line fell from 57.7% to 16.1%. About 496 million people were lifted out [1].
  • Non-monetary: NITI Aayog's MPI (Multidimensional Poverty Index) fell from 29.17% (2013-14) to 11.28% (2022-23), and 24.82 crore people escaped deprivation [2].
  • Welfare cushion: HCES 2022-23 counts free PDS foodgrains as consumption [3], so targeted transfers raised measured living standards.

Persisting inequality

  • Wage gap: the top 10% of workers earn about 13 times what the bottom 10% earn [1].
  • Gini paradox: the consumption Gini of 25.5 (2022-23) is presented as one of the world's lowest [4]. But the rich save more and under-report in surveys, and the World Bank warns that India's inequality may be underestimated [5].
  • Youth unemployment is flagged as a risk to further gains [1].

Regional concentration

  • About 57% of India's poor live in the contiguous UP–West Bengal belt [1].
  • As national poverty falls, the remaining poor become more spatially concentrated, and national averages hide these pockets [1].

Critical caveats

  • Vulnerability: about 13.5% of Indians sit between $3.00 and $4.20 a day [1]. An illness, a crop failure or the end of free rations could push them back.
  • Measurement: HCES 2022-23 changed its survey design and now imputes free items [3]. The direction of the fall is clear, but its size is less certain.
  • Projections: NITI's 2013-14 and 2022-23 MPI figures are estimates, not survey readings [2].
  • Slowdown: further declines are expected to be more gradual [1].

Overall, India has nearly ended extreme poverty, but large pockets of vulnerability, inequality and regional disadvantage remain. The way forward is to:

  • set a new national poverty line based on HCES data;
  • collect income data, not just consumption data;
  • target the eastern belt through the Aspirational Districts and Blocks programmes;
  • invest in skilling for youth.

This would turn poverty reduction into inclusive growth, in line with Article 38(2) and SDGs 1 and 10.

Sources

  1. 1The Hindu: "India made 'remarkable progress' in reducing poverty, says World Bank" (31 Oct 2026), news report on the World Bank Poverty and Equity Brief: India, October 2026extreme and LMIC poverty trends, 496 million, 13× wage gap, 57% in UP–WB belt, youth unemployment, slower future decline
  2. 2PIB/NITI Aayog: "24.82 crore Indians escape Multidimensional Poverty in last 9 years" (Jan 2024)MPI 29.17% → 11.28%; 2013-14 and 2022-23 figures are projections
  3. 3MoSPI: Household Consumption Expenditure Survey 2022-23 Fact Sheetimputation of free PDS items; changes in survey design
  4. 4PIB: "India's Story on Bridging Inequality" (July 2025)consumption Gini 25.5 (2022-23)
  5. 5World Bank: Poverty & Equity Brief, India (Spring 2025)consumption inequality may be underestimated
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