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India's Poverty Declines Sharply Amid Persistent Wealth Inequality

India has made significant strides in reducing poverty levels, yet wealth distribution remains highly skewed, with the richest 10 percent earning approximately 13 times more than the poorest segment of the population.

LSN India · 30 October 2026

India's Poverty Declines Sharply Amid Persistent Wealth Inequality

India's poverty reduction efforts have yielded measurable results in recent years, with the proportion of citizens living below the poverty line declining substantially. The improvement reflects economic growth and targeted social welfare programs implemented across the country.

However, this progress is tempered by a stark disparity in income distribution. Analysis of household income data reveals that the wealthiest decile earns roughly 13 times the income of the bottom 10 percent, highlighting the concentration of wealth among a small segment of the population.

The persistence of significant inequality even as absolute poverty levels fall raises questions about the inclusivity of India's economic growth. While more citizens have moved above the poverty threshold, the gains have not been evenly distributed across social and economic groups.

Experts point to the need for policies that address both poverty reduction and wealth inequality. This includes strengthening access to quality education, healthcare, and employment opportunities for lower-income populations, alongside progressive taxation measures to ensure broader-based economic participation.