India pulled 500m people out of poverty. Many of them still barely survive

India, the world's most populous country, has achieved remarkable poverty reduction according to recent data. A World Bank report indicates that between 2011 and 2023, India lifted nearly 500 million people out of poverty, with extreme poverty dropping from 27.1 percent to just 2.6 percent during this period. This achievement places India's poverty reduction effort second only to China's, which lifted more than 800 million people out of extreme poverty over four decades.

However, these official statistics mask the harsh reality faced by millions of Indians who have crossed the supposed poverty threshold yet continue to live in precarious conditions. The World Bank's poverty line for a family of three in India is set at approximately 7,380 rupees ($78) per month, a figure that many argue is insufficient for a dignified life.

Low Threshold

Hema Prajapat, a 25-year-old woman from Rajsamand district in Rajasthan, exemplifies this contradiction. Her family of three spends 11,000 rupees ($117) monthly - 49 percent above the official poverty line - yet still struggles to make ends meet. 'This poverty line, this bar, is very low. No person can live a dignified life [on this amount],' Hema told Al Jazeera.

Developmental economist Santosh Mehrotra supports this view, stating that India's poverty threshold is too low and that 'all it takes is one shock to be pushed back into it.' This shock could be a pandemic, drought, flood, or even a significant family expense.

Economic Pressures

India's rapid economic growth, making it the world's fourth-largest economy by nominal GDP, has not translated into widespread prosperity. The country is one of the world's most unequal, with the top 1 percent owning 40 percent of its wealth. Rising consumer prices have outpaced wage growth, with overall consumer prices rising by at least 51 percent between September 2016 and September 2025.

Hema's family illustrates these challenges. After her husband's street food business failed during the pandemic, she began working as a domestic helper earning 5,000 rupees ($53) monthly. Despite her income, the family remains in debt, and she notes that 'the money is now vanishing faster, and we are even more in debt' as prices continue to rise.

Healthcare Costs

Healthcare expenses represent a significant burden for families living just above the poverty line. When Hema's son fell ill, she chose a private hospital over public facilities due to concerns about long wait times and overcrowded government hospitals. The 6,000 rupees ($64) treatment cost exceeded her monthly income, forcing the family deeper into debt.

Similarly, Sushila Salvi, a Rajsamand resident, had to drain her savings and pull her daughter out of tuition classes when she sought private maternal care costing 65,000 rupees ($695). These expenses highlight how even routine healthcare needs can push vulnerable families back toward poverty.

Fragile Progress

The Indian government's food security program, which provides free or subsidized grains to nearly 800 million citizens monthly, has helped combat extreme poverty. However, these benefits are increasingly strained by rising living costs. Seema Kumar, a Delhi resident, spends 20,000 rupees ($214) monthly on her family of three and relies on loans during festivals or special occasions.

Environmental shocks further compound these vulnerabilities. During Delhi's recent Diwali festival, toxic air pollution caused health issues for Seema's family, forcing her to choose between medical expenses and basic necessities. 'I could not buy a mask for my son, and they say I am not poor any more,' Seema told Al Jazeera.

For Hema, the fear of returning to extreme poverty is constant. 'If I do not work for a single day – let alone a month – we can go back to the days of extreme poverty and deprivation,' she said, reflecting the fragile nature of progress for millions of Indians who remain just one crisis away from losing everything.