Hotmail co-founder Sabeer Bhatia has questioned claims that 250 million Indians are no longer poor, calling the $5-a-day benchmark “absurd” and asking how anyone could afford basic life needs on such a figure.
In a post on X, Bhatia challenged the idea that escaping “extreme poverty” on paper translates into meaningful economic upliftment. “Really? Can you send your kids to school, buy books, shoes, food, pay rent and utilities on that?” he wrote. “Which world are these people living in?”
His comments come amid growing criticism of the World Bank’s $3/day poverty line, which is often used to declare success in poverty alleviation.
Even at a higher $4.20/day threshold, nearly one-fourth of India’s population would still qualify as poor — a fact overlooked in celebratory narratives.
Bhatia’s remarks sparked broader discussions about how poverty is defined and measured. One X user posted sarcastically: “If you don’t have to beg for your next meal, you are middle class,” slamming the bureaucratic mindset behind “multidimensional poverty” indices that fail to reflect actual living standards.
Cost-of-living surveys back these concerns. In cities like Delhi, even basic monthly survival far exceeds ₹415 — the equivalent of $5/day. Analysts say that at this level, education, healthcare, and dignified housing remain out of reach for most.
Critics argue that claims of mass poverty reduction hide a more fragile reality: a huge population hovering just above statistical thresholds, still reliant on state welfare and highly vulnerable to economic shocks like illness or job loss.
Opposition leaders and economists have also questioned official narratives, pointing to sluggish consumption data and the ongoing need for subsidized food to underscore the disconnect between policy claims and everyday struggles.
As Bhatia noted, a technical upgrade from $3 to $5 per day may make for a compelling headline — but it doesn’t translate to a real, sustainable middle-class life.
