A new report by the World Bank asserts that India successfully lifted nearly 500 million people out of poverty between 2011 and 2023, with extreme poverty purportedly dropping from 27.1 percent to 2.6 percent. Officials attribute this alleged milestone to robust consumption growth, rising employment rates, and extensive social welfare programs, such as food subsidies distributed to hundreds of millions of citizens.

Despite these official figures, independent economists and the 2026 World Inequality Report highlight a deeply contrasting economic reality. Income and wealth disparities in the country have reportedly widened significantly since the economic liberalization of the 1990s, leaving India as one of the most unequal nations globally. The top 10 percent of earners allegedly capture roughly 58 percent of the national income, while the bottom 50 percent receives a mere 15 percent.

Furthermore, analysts point to severe structural deficiencies, including chronically underfunded public healthcare, low real wage growth, and surging youth unemployment rates that exceed 15 percent. Critics argue that relying heavily on free food distribution programs merely conceals pervasive economic distress without addressing fundamental inequalities in education, asset ownership, and job creation.

Source: www.aljazeera.com