India Lifts 496 Million Out of Poverty as Global Economic Challenges Intensify

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India’s progress in poverty reduction, investment-led growth across its states and rising economic pressures in Europe and the United States were among the key topics discussed in DD India’s latest The Economic Brief.

Featuring Dr. Amit Kapoor of the Institute of Competitiveness India, the programme examined how changing economic conditions are influencing consumption, investment and political priorities worldwide.

According to the World Bank findings highlighted in the programme, approximately 496 million people moved out of poverty in India between 2011 and 2023.

The poverty rate, measured at the $4.20-a-day threshold, declined from 57.7% to 16.1%. Extreme poverty, measured at $2.15 a day, fell from 27.1% to 2.6%.

Other key findings include:

  • The rural-urban extreme poverty gap narrowed from 7.7 to 1.7 percentage points.
  • Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh accounted for roughly two-thirds of the reduction in extreme poverty.
  • India’s Gini coefficient declined from 28.8 to 25.1, indicating reduced income inequality.

Dr. Kapoor noted that rising disposable incomes among households moving out of poverty are supporting domestic consumption and economic activity.

Maharashtra is targeting a $1 trillion economy by 2030 through infrastructure development and industrial expansion beyond Mumbai. Its priorities include logistics, automobiles, electronics, electric vehicles, semiconductors and clean technology.

Kerala recorded ₹4,646 crore in investments during April-June 2026, nearly three times the corresponding period last year. Its growth strategy focuses on tourism, ports, logistics, healthcare and improving investment approvals.

Dr. Kapoor emphasised the importance of industrial clusters, skilled workers and supportive regulations in attracting long-term investment.

Rising living costs are creating economic and political pressure across several European countries, including France, Spain, Portugal, Belgium and Greece.

Housing affordability, energy prices, youth unemployment and stagnant real incomes remain major concerns despite easing headline inflation.

Dr. Kapoor attributed the pressures to successive global disruptions, including the COVID-19 pandemic and the Ukraine war. He called for greater investment in education, healthcare, innovation and employment quality.

Economic concerns are also shaping the US midterm elections scheduled for November 3. According to the figures cited in the programme, 85% of surveyed voters consider the cost of living a major issue.

Food, energy, healthcare and housing costs are among the leading concerns. Rising fuel prices have added to household and business pressures, making economic management a central election issue.

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