Behind the numbers: Economist Indira Hirway debunks India's poverty reduction narrative

By Rajiv Shah

A recent article by noted economist Indira Hirway, titled “The Hoax of Decline in Poverty in India” and published in The Wire on July 8, 2025, casts serious doubt on official claims of a dramatic fall in poverty rates in India. Hirway critiques the recent estimates by economists C. Rangarajan and S. Mahendra Dev, which assert that extreme poverty declined from 29.5% in 2011–12 to 9.5% in 2022–23, and further to 4.9% in 2023–24—a near 25 percentage-point drop over a decade.

According to the World Bank, using the USD 2.15 per day (2017 Purchasing Power Parity - PPP) international poverty line, extreme poverty in India reportedly fell from 16.2% to 2.3%, translating into around 170 million people lifted out of poverty. However, Hirway contends that this statistical narrative is disconnected from the lived reality of millions of Indians.

“If only 4.9% of people are poor in India, why do 35% of children under five remain stunted, 18.5% wasted, and millions dependent on free food?” she asks, challenging the coherence of official data. She also points out that India is ranked 105th out of 127 countries on the Global Hunger Index, with an “alarming” score of 27.3, and that over 800 million people continue to rely on free grain distributions.

Hirway argues that poverty measurement itself is flawed. She criticizes the Rangarajan Committee’s poverty lines—₹64.66/day for rural areas and ₹91.2/day for urban—as grossly inadequate. “These thresholds are too low to measure meaningful deprivation,” she writes, adding that the World Bank’s USD 2.15 line is also unsuitable for India, a lower-middle-income country where the more appropriate threshold would be USD 3.65/day.

“India’s poverty statistics are not credible,” Hirway states bluntly. “It is time for the country to overhaul its poverty measurement and adopt a more realistic understanding of deprivation and vulnerability.” She notes that 20% of the population is still illiterate, 45% have not studied beyond primary school, and over 90% of the workforce remains informal, lacking any form of job security or social protection.

While acknowledging that economic growth and welfare schemes like food subsidies have played a role, Hirway warns against complacency. “Declaring victory over poverty on the basis of faulty lines hides the structural problems that keep people poor,” she writes.

In conclusion, Hirway calls for a reassessment of India’s poverty metrics: “Poverty is a multidimensional phenomenon. A narrow income-based line cannot capture the lived experience of millions. We must measure poverty in ways that reflect health, education, nutrition, and basic dignity.”

Her article serves as a sobering counterpoint to the optimistic projections of rapid poverty eradication, and a reminder that statistical gains do not always reflect the ground reality of deprivation and inequality in India.

Comments

From algorithms to exploitation: New report exposes plight of India's gig workers

By Jag Jivan The recent report, "State of Finance in India Report 2024-25," released by a coalition including the Centre for Financial Accountability, Focus on the Global South, and other organizations, paints a stark picture of India's burgeoning digital economy, particularly highlighting the exploitation faced by gig workers on platform-based services.

Countrywide protest by gig workers puts spotlight on algorithmic exploitation

By A Representative A nationwide protest led largely by women gig and platform workers was held across several states on February 3, with the Gig & Platform Service Workers Union (GIPSWU) claiming the mobilisation as a success and a strong assertion of workers’ rights against what it described as widespread exploitation by digital platform companies. Demonstrations took place in Delhi, Rajasthan, Karnataka, Maharashtra and other states, covering major cities including New Delhi, Jaipur, Bengaluru and Mumbai, along with multiple districts across the country.

Over 40% of gig workers earn below ₹15,000 a month: Economic Survey

By A Representative The Finance Minister, Nirmala Sitharaman, while reviewing the Economic Survey in Parliament on Tuesday, highlighted the rapid growth of gig and platform workers in India. According to the Survey, the number of gig workers has increased from 7.7 million to around 12 million, marking a growth of about 55 percent. Their share in the overall workforce is projected to rise from 2 percent to 6.7 percent, with gig workers expected to contribute approximately ₹2.35 lakh crore to the GDP by 2030. The Survey also noted that over 40 percent of gig workers earn less than ₹15,000 per month.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Budget 2026 focuses on pharma and medical tourism, overlooks public health needs: JSAI

By A Representative Jan Swasthya Abhiyan India (JSAI) has criticised the Union Budget 2026, stating that it overlooks core public health needs while prioritising the pharmaceutical industry, private healthcare, medical tourism, public-private partnerships, and exports related to AYUSH systems. In a press note issued from New Delhi, the public health network said that primary healthcare services and public health infrastructure continue to remain underfunded despite repeated policy assurances.

When compassion turns lethal: Euthanasia and the fear of becoming a burden

By Deepika A 55-year-old acquaintance passed away recently after a long battle with cancer. Why so many people are dying relatively young is a question being raised in several forums, and that debate is best reserved for another day. This individual was kept on a ventilator for nearly five months, after which the doctors and the family finally decided to let go. The cost of keeping a person on life support for such extended periods is enormous. Yet families continue to spend vast sums even when the chances of survival are minimal. Life, we are told, is precious, and nature itself strives to protect and sustain it.

'Gandhi Talks': Cinema that dares to be quiet, where music, image and silence speak

By Vikas Meshram In today’s digital age, where reels and short videos dominate attention spans, watching a silent film for over two hours feels almost like an act of resistance. Directed by Kishor Pandurang Belekar, “Gandhi Talks” is a bold cinematic experiment that turns silence into language and wordlessness into a powerful storytelling device. The film is not mere entertainment; it is an experience that pushes the viewer inward, compelling reflection on life, values, and society.

Death behind locked doors in East Kolkata: A fire that exposed systemic neglect

By Atanu Roy* It was Sunday at midnight. Around 30 migrant workers were in deep sleep after a hard day’s work. A devastating fire engulfed the godown where they were sleeping. There was no escape route for the workers, as the door was locked and no firefighting system was installed. Rules of the land were violated as usual. The fire continued for days, despite the sincere efforts of fire brigade personnel. The bodies were charred in the intense heat and were beyond identification, not fit for immediate forensic examination. As a result, nobody knows the exact death toll; estimates are hovering around 21 as of now.

When resistance became administrative: How I learned to stop romanticising the labour movement

By Rohit Chauhan* On my first day at a labour rights NGO, I was given a monthly sales target: sixty memberships. Not sixty workers to organise, not sixty conversations about exploitation, not sixty political discussions. Sixty conversions. I remember staring at the whiteboard, wondering whether I had mistakenly walked into a multi-level marketing office instead of a trade union. The language was corporate, the urgency managerial, and the tone unmistakably transactional. It was my formal introduction to a strange truth I would slowly learn: in contemporary India, even rebellion runs on performance metrics.

Search This Blog