World Bank Estimates Extreme Poverty in India at 2.6 Per Cent, Sparking Debate

Published 2026-11-11

The World Bank has recently released new estimates of poverty in India. According to the report, extreme poverty in the country now stands at 2.6 per cent of the population. The figure has drawn attention from economists, policymakers and the public, because it is much lower than many people expected.

The World Bank measures extreme poverty by looking at how much money people need to meet their basic needs. Critics of the new estimate have questioned whether this method reflects the real cost of living for ordinary families. Some commentators have used a simple test, sometimes called the "thali test," which looks at the cost of a basic vegetarian meal in India. They argue that if a typical family struggles to afford such a meal, the poverty figure may be too low.

Supporters of the World Bank's approach say that the estimate uses internationally comparable data and standard methods. They also point out that India has seen significant economic growth and improvements in areas such as access to food, electricity and bank accounts over the past decade. Officials and experts continue to discuss how poverty should be measured in a country as large and diverse as India.

The debate shows how difficult it is to define and count poverty accurately. Whatever the final view, the estimate has raised important questions about living standards, household spending and the policies needed to help the poorest families in India.

Sources: The Indian Express

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