The standard of living in India varies from state to state. In 2021, extreme poverty was fully eradicated to as low as 0.8% and India is no longer the nation with the largest population under poverty.

There is significant income inequality within India, as it is simultaneously home to some of the world's richest people. The average wages are estimated to quadruple between 2013 and 2030.

The standard of living in India shows large geographical disparity as well. For example, on one hand most metropolitan cities and other urban and suburban regions boast world-class medical establishments, luxurious hotels, sports facilities and leisure activities similar to that of first world developed nations, while there is significant poverty in rural areas of India, where medical care tends to be very basic or unavailable because of lack of doctors. Similarly, the very latest machinery may be used in most construction projects, but some construction workers work without mechanization in some projects, mostly in very rural parts. However, a rural middle class is now emerging in India, with some rural areas seeing increasing prosperity.

As per the IMF's World Economic Outlook for 2020, the per capita PPP-adjusted GDP for India was estimated to be US$9,027.