In a landmark report titled “India’s Social Mobility and Poverty Trends”, the World Bank highlights an extraordinary transformation underway in India — one that could redefine the country’s economic future.
Key Takeaways:
Poverty Has Plummeted:
Extreme poverty (people living under $2.15/day) collapsed from 16.2% in 2011-12 to just 2.3% in 2022-23.
That’s over 171 million people moving out of extreme poverty in just a decade!
A Rising Consumer Class:
At the $3.65/day level, poverty dropped from 62% to 28% in the same period.
This unlocks a massive new middle and lower-middle consumer base — a once-in-a-generation opportunity for businesses and investors.
Inequality – A Mixed Bag:
Consumption inequality slightly improved (Gini Index down to 25.5), but income inequality remains very high — driven largely by soaring wealth at the very top.
Employment Trends:
Urban unemployment fell to a 6-year low of 6.6%.
More women are entering the workforce, although the gender gap remains massive: 234 million fewer women are in paid work compared to men.
Youth Unemployment Challenge:
Shockingly, nearly 1 in 3 college graduates is unemployed.
This signals a skills mismatch that needs urgent attention.
Structural Shifts:
Rural-to-urban migration is back. Rural female employment is rising, and urban job creation is picking up steam.
Why This Matters for Investors and Markets:
- New Consumers, New Demand:
Millions joining the middle class = bigger markets for housing, autos, banking, insurance, retail, edtech, and healthcare. - Structural Growth Story:
With more educated, better-employed citizens, India’s economic engine is likely to fire on all cylinders over the next two decades. - But Watch Inequality and Youth Jobs:
If inequalities widen too much, or the youth bulge remains under-employed, it could become a bottleneck to sustained growth.
Broader Impact on Indian Markets:
The optimism in India’s stock markets — record highs, bullish FII inflows, growing investor base — finds strong backing in these social fundamentals.
However, markets will reward companies that cater to India’s “Next 300 Million” — those just rising out of poverty — not just the top elite.
India’s story is no longer just about GDP numbers. It’s about real people moving up, and markets expanding wider than ever before.
With poverty falling and millions joining the consumer economy, where do you think the biggest investment opportunities lie for the next decade? Rural markets? Education? Banking? Tech?
Would love to hear your thoughts! 
Source:
World Bank Report - India Development Update (April 2025)