India has often talked about its success in reducing poverty. The World Bank’s new estimates say India has made big progress in cutting extreme poverty, defined by people living on less than $3 a day. These figures suggest poverty is now very low in the country. Why the poverty line is a misleading measure of progress
But if we look at how people spend their money, a different story emerges. Many families may be just above the poverty line, but their lives still look poverty-stricken. They spend most of their earnings on food and basic needs. This is why simply counting how many are below a line can be misleading.