India has definitely made progress in cutting down extreme poverty, but a lot of people still struggle to cover their basic needs. According to the World Bank, about one in every four Indians—that’s more than 350 million people—live below what’s considered the minimum standard for a decent life.
They might not be classified as “extremely poor” anymore, but they still don’t have reliable access to things like nutritious food, safe homes, healthcare, or education.
A spokesperson from the World Bank said that while poverty has gone down in India, the way poverty is measured has also changed recently. Household welfare has improved since 2011 with better social programs and growing incomes. But newer surveys are also designed differently, which might affect how spending is reported.
Officially, only 5% of Indians live in extreme poverty now—defined as living on less than $3 a day (adjusted for purchasing power). That’s a huge drop from 27% back in 2011, meaning nearly 270 million people moved out of extreme poverty in just over ten years.
But here’s the thing: the World Bank says the $3-a-day line isn’t really enough for India anymore. They suggest a higher poverty line—$4.20 per day—which better reflects what it takes to live with basic dignity in a growing economy. Other countries like Sri Lanka and Nepal already use this benchmark.
Even by this $4.20 standard, over 350 million Indians still fall short of meeting essential needs.
India hasn’t updated its own official poverty line since 2011–12. Some new survey methods show higher household spending, which can make poverty look smaller than it really is. Meanwhile, older poverty lines like the Rs 33-a-day urban poverty line have quietly stopped being used.
To get a better picture, India is also using tools like the Multidimensional Poverty Index, which looks beyond income to things like education, sanitation, electricity, and housing. This index shows multidimensional poverty falling from 29% in 2013 to 11.3% in 2022, with over 200 million people coming out of deprivation, especially in poorer states.
Still, the gap between rich and poor remains wide. India’s income inequality has only improved a little—from a Gini Index of 28.8 in 2011 to 25.5 in 2022. The richest 1% hold over 40% of the country’s wealth, while the poorest 50% have just 6.4%.
In cities, expensive rents and unstable jobs mean even people above the poverty line often live precariously. In rural areas, small land holdings and seasonal work keep incomes uncertain. Any emergency—like a medical bill or job loss—can push families back into hardship.
The World Bank spokesperson summed it up: there’s still a long way to go to end poverty in India. Using a more realistic poverty line like $4.20 a day shows that about one in four Indians still live below a decent standard of living. And while extreme poverty—living on less than $3 a day—has dropped to 5%, that’s still over 70 million people struggling with the most basic needs.
The World Bank also warns that comparing old and new poverty numbers is tricky because of changes in data collection. But overall, this shows how the conversation about poverty in India is evolving. It’s no longer just about helping people cross a fixed poverty line—it’s also about redefining what that line should really mean today.
