Under Prime Minister Narendra Modi's leadership since 2014, India has witnessed a structural shift in its economic landscape — more than 25 crore people have crossed the poverty line, and a newly expanded middle class has emerged as the backbone of the country's growth story. The transformation, driven by targeted policy reforms, digitalisation, and infrastructure investment, was highlighted at an National Democratic Alliance (NDA) conclave in New Delhi on Wednesday, 10 June, marking 12 years of the coalition government.

What Modi Said at the NDA Conclave

'In these 12 years of the NDA government, the rise of more than 25 crore people out of poverty line illustrates the fact that our policies are correct, our direction is right. This success instils confidence in the people in India that his struggle will end someday, that he too will achieve his dreams one day,' the Prime Minister said while addressing Chief Ministers, alliance partners, and senior leaders gathered for the occasion.

Modi also issued a forward-looking directive to his allies: 'We have to ensure that those who were poor till the other day, those who are today's new middle class, should not be let to slide back ever. So as the representatives of the people, we have to work day and night and work hard.'

World Bank Data and Poverty Benchmarks

The claims find independent support in the World Bank's Spring 2025 Poverty and Equity Brief, which acknowledged India's decisive fight against extreme poverty. According to the report, the share of Indians living on less than USD 2.15 a day — the international benchmark for extreme poverty — fell sharply from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022-23. Notably, in less than one year under Modi 3.0, India reportedly lifted 171 million people out of extreme poverty — described as one of the most remarkable achievements of the past decade.

An earlier Niti Aayog report on the Multidimensional Poverty Index (MPI) reinforced this trend, recording a near-halving of the index value. The proportion of the population in multidimensional poverty declined from 24.85 per cent to 14.96 per cent between 2015-16 and 2019-21 — a reduction of 9.89 percentage points, equivalent to approximately 13.55 crore people escaping poverty over that period.

The Niti Aayog report noted that this puts India 'well on course to achieve SDG target 1.2 — which aims to halve the proportion of people living in poverty in all its dimensions — much ahead of 2030.' The Intensity of Poverty, measuring average deprivation among those still in multidimensional poverty, also eased from 47.14 per cent to 44.39 per cent over the same period.

The Four Pillars Driving Middle-Class Expansion

The government attributes this growth to what it describes as four pillars: targeted interventions in taxation, healthcare, education, and infrastructure. On taxation, successive reforms have lowered income tax rates and simplified return filing, with the stated aim of allowing citizens to retain more of their earnings.

The results are visible in filing data. The number of income-tax payers rose from 5.26 crore in fiscal year 2013-14 to 12.13 crore in 2024-25 — more than doubling in 11 years. Officials argue this reflects voluntary participation as economic conditions improve, representing one of the largest structural expansions of India's formal middle class.

Middle Class as India's Economic Engine

This expanded middle class is now positioned as a critical driver of domestic consumption, innovation, and equitable growth. Analysts and government officials alike point to the demographic shift as central to India's stated ambition of reaching a USD 10 trillion economy. The convergence of rising taxpayer numbers and falling poverty rates is presented as evidence that middle-class expansion and poverty alleviation can function as complementary — rather than competing — forces in a developing economy.

This transformation, if sustained, would represent one of the most significant demographic and economic shifts in the country's post-independence history. Whether the momentum holds will depend on continued policy consistency and the government's ability to prevent newly elevated households from sliding back — a concern Modi himself flagged explicitly at the conclave.