Sitharaman Highlights World Bank’s Six Key Findings on India’s Poverty Reduction as a Trust Builder for NDA Government

NEW DELHI: Finance Minister Nirmala Sitharaman announced on Friday that India has achieved one of the fastest declines in poverty globally, according to the World Bank’s October 2026 Poverty and Equity Brief. She attributed this progress to the government’s policies under Prime Minister Narendra Modi, which she claims have fostered public trust and support for the National Democratic Alliance (NDA). In a post on X, Sitharaman outlined six key findings from the report, which include significant improvements in poverty reduction, employment growth, and access to electricity.

The six key findings highlighted by the finance minister were:

• Poverty reduction: 49.6 crore people moved above the lower-middle-income poverty line of $4.20 a day between 2011 and 2023, with the poverty rate declining from 57.7% to 16.1%.
• Decline in extreme poverty: Extreme poverty fell from 27.1% to 2.6% over the same period, measured at $3 a day.
• Employment growth: Employment increased by 13.4 crore people between 2017 and 2023, nearly doubling the increase in the working-age population.
• Women’s participation: Rural women significantly contributed to employment gains, entering paid work and increasing household earners.
• Improved household welfare: Both rural and urban households saw substantial welfare gains, with rural areas experiencing faster progress.
• Electricity access: Access to electricity reached 99% of the population, according to the report’s 2022 survey data.Sitharaman noted that strong consumption growth, rising employment—especially among women—and expanded social transfers, including food subsidies, were key drivers of India’s progress. She stated that the government would continue to prioritize productive employment, stronger household incomes, and effective public service delivery.

  The minister’s comments on poverty reduction coincided with a political exchange with Congress leader Rahul Gandhi regarding the proposed sale of the government’s stake in IDBI Bank to Canada’s Fairfax Financial Holdings. Gandhi opposed the disinvestment, arguing that public sector banks serve a larger purpose beyond commercial returns. In a letter to IDBI Bank employees, he emphasized the bank’s turnaround and questioned the decision to sell to a private investor.

  Sitharaman responded by accusing the Congress-led government of misusing banks and financial institutions for personal gain. She claimed that IDBI Bank was in poor condition when handed over to the current government and highlighted the NDA’s efforts to revive it through professionalism and significant recapitalization.

  On October 14, the government approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for approximately Rs 53,000 crore ($5.5 billion). The transaction is expected to be completed by the end of the current financial year, pending regulatory clearances from the Reserve Bank of India.

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