India Lifted Many Out of Poverty, But Many Still Barely Survive

A recent World Bank report indicates that India lifted nearly 500 million people out of extreme poverty between 2011 and 2023, causing extreme poverty rates to drop significantly. The only comparable reduction on this scale was achieved by China over four decades. While the World Bank calculates these figures using consumption surveys and poverty thresholds, India itself has not published an official consumption-based poverty estimate in over a decade. This data gap has sparked debates among economists regarding the accuracy and political implications of these sweeping conclusions.

Masked by this academic debate is the daily reality of millions of citizens who have crossed the official threshold but still experience severe deprivation. For instance, Hema Prajapat, a 25-year-old caretaker in Rajasthan, spends roughly 11,000 rupees monthly for a household of three. This amount sits above the World Bank poverty line for that family size, yet her kitchen shelves remain empty by month's end, and her husband sinks deeper into debt. Increased living costs and inadequate wage growth mean that earnings often fall short despite rising female labor force participation.

Millions of Indians cross the poverty line yet live in persistent deprivation and precarity.

India remains one of the world's most unequal nations, with the top 1 percent of the population owning 40 percent of its wealth. Although government initiatives provide free or subsidized foodgrains to nearly 800 million citizens and offer free healthcare, families continue to battle escalating living expenses. Consumer prices have risen considerably over the years, placing immense pressure on households that rely heavily on daily market purchases and lack agricultural land.

Why it matters

This situation affects millions of families across India who navigate severe economic pressures despite official progress reports. While international metrics highlight a massive decline in extreme poverty, the lived experience of persistent financial precarity reveals that many citizens remain only one shock away from losing everything.