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Poverty declines on paper, but hunger tells a different story

National Herald | June 9, 2025 11:39 PM CST

India’s extreme poverty rate may have sharply declined on paper from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23, but a closer look reveals a more complex, sobering reality. The headline figures from the appear to celebrate a remarkable turnaround. Yet, the broader picture when viewed through the lens of real-world living conditions, hunger, and independent estimates paints a far more troubling portrait.

In a methodological update, the World Bank revised its threshold for extreme poverty from USD 2.15 to USD 3 per day, adjusted for India’s inflation and purchasing power parity (PPP). At this revised level, 5.44 per cent of India’s population — approximately 54.7 million people — lived below the poverty line in 2024. The bank also claimed that 171 million people had been lifted out of extreme poverty between 2011-12 and 2022-23, with rural poverty falling from 18.4 per cent to 2.8 per cent and urban poverty from 10.7 per cent to 1.1 per cent.

However, these figures are being challenged for what they fail to capture. Critics argue that this data does not account for the functional realities of poverty: the inability to afford adequate nutrition, healthcare, or basic dignity in living.

Free and subsidised food rations may have softened the blow for many households, but they are also evidence of how widespread hunger remains. As of 2024, more than 80 crore Indians rely on government-provided food support.

TMC MP Saket Gokhale took to X to criticise the narrative being pushed by the Centre. Citing government and independent data, Gokhale pointed out that India had as many as 342 million people (about 24 per cent of the population) living below the poverty line in 2022-23. Referencing figures from the Centre for Monitoring Indian Economy (CMIE), he said the 2024 estimate could be as high as 621 million or 44 per cent of the population.

“What sort of 'development' is this where almost half of our population lives under poverty?” Gokhale asked. “PM Modi & BJP have spent crores on propaganda to lie to people & say that ‘vikaas’ is happening... while the govt provides free ration to over 80 crore people which proves that their income is not even enough for food.”

Experts and economists around the globe have long argued that poverty must be measured not just by income, but by a person's real capacity to meet basic needs — nutrition, shelter, education, and healthcare. The Indian approach, say critics, overly relies on expenditure data that includes subsidised or state-supported consumption, giving a distorted impression of purchasing power and wellbeing.

Adding to concerns is India’s broader economic performance. The World Bank report notes that the country's real GDP remains 5 per cent below the pre-pandemic trend as of FY25. While growth is expected to gradually recover by 2027-28, the outlook remains vulnerable to global uncertainties, trade tensions, and sluggish private investment. The current account deficit is projected to average 1.2 per cent of GDP during FY26–28, with reserves expected to remain stable around 16 per cent of GDP.

But these macroeconomic indicators ring hollow for millions still trapped in a cycle of underemployment, price shocks, and an eroding social safety net. While the official poverty rate is being celebrated, the lived experience of many Indians — across religions and regions — tells a different story. “Poverty doesn’t identify you by your clothes,” Gokhale remarked. “It affects people of all religions.”

The challenge, critics insist, is not just statistical. It is moral and political. The poverty debate in India is increasingly becoming a fight over which lens is used to define the problem where through abstract thresholds or lived hardship. Until the conversation shifts to basic human capabilities and dignity, claims of progress risk becoming little more than numbers on a page.

With agency inputs