Describe How The Poverty Line Is Estimated In India

Poverty Line Is Estimated In India

Poverty Alleviation Has Been a Major Challenge Since the Independence of India and Lies at the Core
of India's National Development Plan to Build a Just and Equitable Society. Looking at Ltd.
Assets, Trustworthy Estimation of Poverty Is the First Step Towards Poverty Alleviation
Information for the Design, Execution and Monitoring of Anti-Poverty Programmes. Poverty Measurement Is Also Important to Serve as a Barometer of the Extent of Strategies' Success.
for Inclusive Growth and Poverty Reduction. Poverty Can Be Defined as a Condition in Which an Individual or Family Has a Financial Constraint. assets to Afford a Basic Minimum Standard of Living. Yet, the Assumption About What Constitutes Poverty Can Vary Over Time and Across Countries. Traditional Approach.

to Measure, Poverty Is to Specify a Minimum Expenditure (Or Income) That Is Required to Buy a
a Basket of Goods and Services Is Needed to Meet Basic Human Needs. This Expenditure Is Called
Poverty Line. a Basket of Goods and Services Needed to Meet Basic Human Needs
Poverty Line Basket (Plb). Poverty May Be Measured in Terms of the No. of People Living
Below This Line (The Incidence of Poverty Is Expressed as the Headcount Ratio (Hcr) or
Poverty Ratio - the Number of Poor in the Total Population Expressed as a Percentage). Globally,
Countries Use Different Measures to Measure Poverty but the Underlying Principle Remains
Same - the Poverty Line Is Calculated Based on Consumption Required to Maintain Some
Minimum Standard of Living in the Country. However, the Complexities of Measuring the Incidence of Over Time and in a Comparable Manner Across Sectors, Poverty Has Given Rise to Alternatives.
There Are Also Approaches Such as Measures of the Depth and Severity of Poverty.

Method Of The Poverty Line Is Estimated In India

Studies on the measurement of poverty in India have a long history. then plan
The commission was the nodal agency in India for the assessment of poverty. depending on the system
Suggested by the Expert Groups/Committees constituted by the Planning Commission from time to time.
Time, India has made periodic assessments of poverty incidence since the 1960s.
The poverty ratio in India is measured from the exogenously determined poverty line.
Quantified in terms of per capita consumption expenditure and class distribution in a month
Number of individuals obtained from a large sample survey of consumer spending data of the National
Sample Survey Office (NSSO). households with consumption expenditure below the poverty
The line is called "Below Poverty Line (BPL)" and is considered poor. consumption is measured
In reference to the collection of goods and services known as the Poverty Line Basket (PLB).
Thus, the assessment of poverty in India is based on two important components:
  1. Contains information on consumption expenditure and its distribution to households is Provided by NSS Consumption Expenditure Survey;
  2. These expenditures are assessed by households with reference to a given poverty line.

a) Poverty Line Estimation

The first step in estimating poverty is to define and quantify the poverty line.

Pre-Independence Poverty Estimates

i) Poverty and Un-British Rule in India (1901): Dadabhai Naoroji in his book 'Poverty End'
'Non-British rule' in India made the first estimates of the poverty line at 1867-68 prices
(₹16 to ₹35 per person per year) depending on the cost of subsistence food for the emigrant
The porters remain in a state of peace during their journey.
ii) National Planning Committee (1938): In 1938, the National Planning Committee established
Poverty line suggested under the chairmanship of Jawaharlal Nehru (ranging from)
₹15 to ₹20 per person per month) depending on the minimum standard of living.
iii) Bombay Plan (1944): Bombay Plan1
Supporters paid ₹ 75. suggested a poverty line 
per person per year, which was much more modest than that of NPCs.

Post- Independence Poverty Estimation

Different specialist groups constituted by the Planning Commission have estimated the number of
People living in poverty in India:
i) Working Group (1962): Poverty line was determined for the first time in India
By this group about the minimum requirement (food and non-food) of 1962
the person for a healthy life. The group appears to have taken this into account
Balanced Diet Recommendation by the Nutrition Advisory Group of Indians
Council of Medical Research (ICMR) in 1958. The group created different poverty
For rural and urban areas (₹20 and ₹25 per person per month respectively)
1960-61 prices) without any regional variation. Poverty line. did not include expenditure on
Both health and education, it was assumed, were to be provided by the state.
Although it was not an official poverty line, it was widely used in the 1960s and 1970s.
Estimate the poverty ratio at the national and state level.
ii) Study by VM Dandekar and N Rath (1971): Although it was not a study
Commissioned by the Planning Commission, the origin of India's poverty line lies in
The seminal outcome of two economists, V N Dandekar and N Rath, who first established
The consumption level required to meet the minimum calorie norm of the average calorie norm
2,250 calories per person per day. They. made the first systematic evaluation of
Poverty in India was established on National Sample Survey (NSS) data. Unlike previous scholars
who considered the criterion of subsistence living or basic minimum necessities to be the measure of
the poverty line, he has 2250. The poverty line is drawn from sufficient expenditure to provide Calories per day in both rural and urban areas. Expenditure Based Poverty Line Estimation
A debate broke out over minimum calorie consumption norms. they got poverty lines
15 per person per month for rural households and Rs. 22.5 per person per month
Urban households at 1960-61 prices.
iii) Task Force on "Estimation of Minimum Requirements and Effective Consumption"
Demand" Dr Y. Of. Alagh (1979): This task force was constituted in 1977
And it submitted its report in 1979. Official poverty census started for the first time
India is based on the vision of this task force. The poverty line was defined as per capita
Consumption expenditure level to meet average per capita daily caloric requirement
2400 kcal per individual per day in rural areas and 2100 kcal per individual per day in urban
Area. Average caloric requirements were estimated as population-weighted
Average of age-gender-activity specific caloric allowances recommended by
Nutritionist's Group (1968) in the context of the 1971 Population Census. based on
In 1973-74 prices, the task force raised the rural and urban poverty line to Rs. 49.09 and Rs.
56.64 per person per month at 1973-74 prices. These lines were based on the assumption
of various PLBs for rural and urban consumption.
iv) Lakdawala Expert Group (1993): By the 1990s, was not an attempt to capture the differences
Prices or states or differences in consumption patterns over time. Was estimated poverty
Every five NSS has been modified with the survey and value for adjusting the value of using indices
changes over time. This was the pattern of poverty at the national and state level
Some people considered as inappropriate by giving a representative picture of poverty incidence
Country. In 1989, the Planning Commission has constituted the Lakdawala Expert Group
"When the process for estimation of poverty and to redefine the poverty line,
If necessary. "Expert Group submitted its report in 1993. It did not define it again
Recommended by poverty line and whose individual rural and maintained urban poverty line
Alagh Committee based on the minimum nutritional requirements at the national level.
However, it divided to reflect them in the state-specific poverty line
Inter-state price difference. It suggested to them updated using the Consumer Price Index
Industrial workers in urban areas (CPI-IW) and Consumer Price Index for Agricultural
Labour in rural areas instead of using the National Accounts Statistics (CPI-AL). This
Assumed the use of a basket of goods and services CPI-IW and CPI-AL. Is used to calculate
Refers to the consumption patterns of the poor. These recommendations led to the previous
Planning Commission adopt the practice to calculate the level of poverty in rural areas
Using the State-specific poverty line with the national urban areas in states
Estimates from 1997 to 2004-05. Over the years, this method has lost credibility. Price
The data were flawed and failed to protect the gradual poverty line originally calories
v) Tendulkar Expert Group (2009): In 2005, another expert group headed by Suresh
Tendulkar was formed to review the methodology for estimating poverty. had to do it
Eliminate three major drawbacks of the previous methods: (i) Poverty estimates
Poverty Line Baskets (PLBs) of goods and services linked to 1973-74 did not reflect
Significant changes in the consumption patterns of the poor over time; (ii) issues with
Adjustment of costs for inflation, both spatially (across regions) and temporally (across)
Time); and (iii) the estimate of the provision of health and education by the State only.
The expert group submitted its report in 2009. It did not create a poverty line and adopted
The officially measured urban poverty line for 2004-05 (25.7%) based on the expert group
(Lakdawala) method. It worked backward to specify the poverty line that
generated such a poverty rate. Tendulkar committee suggested several changes
The way poverty was measured. First, it recommended a shift away from basing
Poverty lines from the caloric criteria used in all poverty estimates since 1979 and
Target Nutritional Outcomes Instead2
, Secondly, instead of two separate PLBs for rural and
The urban poverty line, it recommended a uniform pan-India urban PLB in rural areas
urban India. Third, it recommended the use of a mixed reference period (MRP) based
Unlike the similar reference period (URP) based estimates used earlier
Methods of estimating poverty It recommended the inclusion of private expenditure
Health and education when assessing poverty. By whom did it recognize the poverty line?
To examine the adequacy of real private consumption expenditure per capita with
Poverty line on food, education and health by comparison with standard
Expenditure commensurate with nutritional, educational and health outcomes, respectively.
Instead of monthly household consumption, consumption expenditure was divided into
Per capita consumption per day, resulting in figures of Rs 32 and Rs 26 per day
in urban and rural areas. The National Poverty Line for 2011-12 is estimated at Rs. 816 copies
per individual per month for rural areas and Rs. 1,000 per person per month for urban areas.

Rangarajan Committee (2014): Reasons for Widespread Criticism of Tendulkar Committee
Due to the changing times as well as the attitudes and aspirations of the people of India, Rangarajan
The committee was constituted in 2012. This committee submitted its report in June 2014
Returning to the practice of having separate baskets of all India rural and urban poverty lines
and obtain state-level rural and urban estimates from them. It recommended separating
Consumption basket for rural and urban areas which includes food items which ensure
Recommended calorie, protein and fat intake and non-food items such as clothing, education,
Health, housing and transportation. This committee increased the daily per capita expenditure
Rs.47 for urban and Rs.32 for rural Rs.32 and Rs.26 respectively 3
at 2011-12 prices.
Monthly per capita consumption expenditure Rs. 972 in rural areas and Rs. 1407 inches
Urban areas are recommended as poverty line at all India level. government did
Don't take any decision on Rangarajan committee report.

b) Use of Consumption Expenditure Surveys

Estimates of the poverty line in India are based on consumption expenditure and not
Income levels of self-employed people due to difficulties in estimating daily wages
labour etc., large fluctuations in income due to seasonal factors, additional side income as well
As data collection difficulties in India's largely rural and informal economy. since the homes
may be able to access debt markets or household savings and thus
Consumption to some extent, consumption expenditure may be able to provide a better basis for determining the real standard of living of a family. Therefore, most poverty estimates
The committees proposed that per capita consumption expenditure or household expenditure were
Correct statistical option for computing poverty in India.
The incidence of poverty is assumed by the Planning Commission based on a large sample
Survey on Household Consumer Expense by National Sample Survey
Organization (NSSO) on a five-year basis. NSSO conducts surveys regularly
Household consumer expenditure, in which households are asked about their past consumption
30 days and is taken as representative of normal consumption. it was considered very
Better data for estimating poverty incidence at national and sub-national levels by adjusting
For inter-state and intra-regional differences in price change over time. consumption estimate
Expenditure as seen in National Accounts Statistics and as estimated from sample surveys
The National Sample Survey Organization shows a large and growing gap. Hence,
Increasingly, reliance was placed on NSSO's sample surveys on consumption expenditure
A better way to accommodate intra-state and intra-regional differences in homes, prices
Change over time, and use of improved recall periods introduced in NSSO surveys.

Data Collection Method for NSSO Expenditure Survey

Equal Resource Period (URP): The poverty line till 1993-94 was based on URP data,
Including asking people about their consumption expenditures during the 30-day recall
period, ie, information last 30 . was based on the recall of consumption expenditure in
Mixed Reference Period (MRP): From 1999-2000 onwards, NSSO switched to MRP
The method that measures the consumption of five low-frequency items (clothing, shoes, boots).
durable goods, education and institutional health expenditure) over the previous year, and all others
Items in the last 30 days.

Release of poverty line estimates

The then Planning Commission had released estimates of poverty in terms of number of persons.
Below Poverty Line as a Percentage of Indian Population for the Years 1973-74, 1977-78, 1983,
1987-88, 1993-94, 1999-2000, 2004- 05, 2009-10 and 2011-12 respectively. Based in July 2013
The Planning Commission on the Tendulkar Poverty Line released the poverty figures for 2011-12.
The number of poor in the country was estimated at 269.8 million or 21.9% of the population. Later
This, no official poverty estimate has been released in India.

Limitations of "Below Poverty Line (BPL)" Approach

It is clear that the process of establishing the estimate of the poverty line has been in constant flux.
The minimum adequate criterion of nutrition has been used as a major criterion to define the poverty line.
come to criticism, both for the level to which it has been fixed and for its inadequacy
The expenditure level of households at which these criteria are likely to be met
the minimum standard of living. As such, conceptual and empirical approaches to measurement
Poverty and the interpretation of statistics are not universally accepted.
Discussion on determining nutritional or caloric norms in which the poverty line lies
It was long and complicated. Common sense suggests that the poverty line should vary from region to region
Mainly due to the variation of tastes and preferences and the value structures
Area. Therefore, determining the components of the Poverty Line Basket (PLB) has been a major key.
The challenge of estimating the poverty line in India due to price difference (of the components of the basket)
Which differs from state to state and from time to time. In addition, consumption patterns, nutrition
The needs and prices of components vary according to the dynamics of the macro-economy, and
Big gaps uncovered between poverty rates calculated by demographics "direct"
the method based on actual caloric intake compared to minimum requirements, and
"Indirect" method based on per capital expenditure vis-a-vis poverty, updated from time to timelines. A significant % of households above the expenditure-based poverty line were unable to age
Meet minimum calorie requirements. It a. questioned the practice of defining
"Poor households" solely on a poverty basis based on their monthly expenditure per capita
Line expenditure was cut without considering family access to the broader dimensions.
As the shortcomings of poverty measurement by various committees became apparent, another
The question arose, is poverty only about consumption? Other factors in poverty include
such as insufficient health or malnutrition, shortage of clean water or electricity, poor quality of work and
Limited education access. The multidimensional character of poverty was recognized. Although,
The deprivations faced by the poor in various sectors like education, health, sanitation etc. are not
Below the poverty line is counted in the outlook. In addition, public expenditure on social services such as
There has been substantial growth in education, health and food security in recent years, which was not
Captured by Design in NSSO's Consumer Expenditure Survey and Derivative Poverty Line
Of these, less is compared to the services actually consumed. the real 'welfare' of
The family will be higher than that indicated by the poverty line. However, even
Rangarajan Committee constituted in 2012 misses opportunity to go beyond spend-based
Consider poverty rates and the possibility of a broader multidimensional view of poverty.

In the above context, the Standing Committee on Finance (minutes of the 19th meeting held on 19th)
May 31, 2010) has reported:
“The existing poverty line approach has its inherent limitations and may not capture important
aspects of the real living conditions of the people. This is also abundantly evident from the fact that
though States like Assam, Andhra Pradesh and J&K have a high malnourishment ratio, the poverty
estimates of these States, as per the Planning Commission’s figures are much lower. This leads us to
the key question of appropriate criteria to estimate poverty and its various facets. …The Committee
cannot help expressing regret over the fact that the criteria / approach recommended by various
expert groups set up from time to time for defining and determining “poverty” or “poverty line” thus
far have only left question marks and have failed in capturing the actual incidence of poverty in the
country. Important aspects such as ill health, low educational attainments, geographical isolation,
powerlessness or dis-empowerment in civil society, caste or gender based inherent disadvantages etc.
remain to be conclusively captured in identifying and enumerating the poor. The wide variation in 
determining the population of the poor is illustrated by the fact that as per one of the expert groups
appointed recently, the BPL population in the country would be as much as 80% as per the existing
calorie norm of 2,400, while as per another norm it is only 37.2%.”

It was also noted that "the committee is optimistic that the poverty ratio is needed".
Objectively and realistically estimated and therefore the criteria should go beyond the present
Criterion that emphasizes calorific value and faithfully reflects changing nutrition
Profile and living conditions of the public. Government programs could be more effective
If multiple dimensions of poverty are recognized and the criteria are fine-tuned then distributed

BPL census to identify poor families

Identification of poor households is a pre-requisite for proper targeting of beneficiaries under unwarranted programmes. While the then Planning Commission had estimated poverty, the actual
Who identified the "Below Poverty Line (BPL)" families in rural areas?
Ministry of Rural Development (MoRD) since 1992. Ministry of Financial and
Technical assistance to States/UTs for conducting BPL census through door-to-door survey
With 100% coverage of rural households. The BPL census was conducted in 1992 for the 8th five year plan.
In 1997 for the 9th five year plan and in 2002 for the 10th five year plan. BPL Census of 1992
An income criterion used to determine poverty with an annual income cut-off set at Rs. 11,000
per house. The 1997 BPL census was conducted in two phases. Previously, there were some families
excluded on the basis of certain criteria. In the second phase, each remaining family was
Interviewed to determine their total consumer expenditure, and identified as a BPL household
If its per capita consumer expenditure was below the poverty line determined by the scheme
Commission. In view of the difficulty in identifying the poor or persons below the poverty line
On income and consumption expenditure-based criterion, the 2002 BPL census was based on?
Indicator-Based Scoring Approach4
Classification of households as poor and non-poor. BPL
The Census generated criticism in three major categories: Methodological deficiencies.
identity, data quality and corruption, and data content.
Ministry of Housing and Urban Poverty to identify BPL families in urban areas
Mitigation is the nodal agency that issues guidelines for conducting house-to-house surveys
On the basis of state specific poverty line indicated by the scheme by the States/UTs

Socio-Economic Caste Census Survey (SECC) 2011

In an effort to address various concerns regarding the BPL census and reduce the inclusion/exclusion
Errors for the fourth BPL identification exercise, alternative targeting methods, were:
proposed and debated. Ministry of Rural Development (MoRD) appointed an expert
Dr N. Committee headed by C. Saxena to propose a new methodology for identification of BPL
households. The committee proposed a radical departure from the previous BPL census and
Recommended three-fold classification of homes into "excluded", "automatically included"
and others".
Based on the recommendations of the Saxena Committee, in 2011, the MoRD launched the Socio-Economic and Caste Census (SECC) - a door-to-door enumeration in both rural and urban
India is collecting household level socio-economic data. It was not intended to replace
the poverty line, but to provide 'information about socioeconomic status, and education
the status of different castes and classes of the population and 'capable of keeping the houses in order
To identify the families living below the poverty line and their socioeconomic status.
The simultaneous census was conducted for rural and urban areas by the States/UTs:
Technical and financial help from the Government of India. This door to door respondents based survey of rural and urban households in the country started in June 2011 and was
Completed in March 2016. SECC-2011 used Census-2011 data collected during the House
Listing Operations (HLO) phase, as its base data. The data was approved by the Gram Sabha and
Village Panchayat. It captured data on houses - personal details, accommodation, deprivation,
Employment, income, property/amenities, and land ownership. SECC 2011 ranked homes
in three categories:

a) Automatically Excluded: Families meeting the exclusion criteria – any of the 13 properties
and income-based norms automatically exclude welfare benefits;
b) Automatically Incorporated: Families meeting the inclusion criteria - 5. any one of
The acute social destitution criteria are automatically included in the welfare benefits;
c) Others: “Others” are ranked and will be based on 7 indicators of deprivation,
Resources allow you to be eligible for welfare benefits.

SECC 2011 obtained data on the socioeconomic status of 17.97 crore rural households, in which
As a result, 7.07 crore (39.36%) families were not poor, they were automatically excluded.
Covering 0.16 crore (0.91%) households as the poorest, and grading the disadvantaged
8.72 crore (48.54%) rural households.
describe how the poverty line is estimated in india

Unlike BPL census, SECC-2011 allows for the first time to track the absence of
Effectively addressing households and deficiencies, focusing on the multi-dimensionality of poverty. Is happening
Outside the Census Act, it provides a rare opportunity to know the specific lack of each
the household. Sumit Bose committee (2017) recommended to use SECC 2011 data
Beneficiaries of all centrally sponsored, central and state government schemes as far as possible.
The government has used SECC data to identify the beneficiary families, while
Implementing its social welfare programs including Pradhan Mantri Awas Yojana-Rural,
Deendayal Antyodaya Yojana-National Rural Livelihood Mission, Prime Minister's Health
Scheme – Ayushman Bharat, Pradhan Mantri Sahaj Bijli Har Ghar Yojana, and Prime Minister
Ujjwala scheme. It is also being used by many state governments to implement National Food
Security Act. ,
Allows evidence-based use of SECC data in the implementation of government programs
developmental intervention. With the use of SECC data, there is a program specific priority list.
Generated taking into account the financial space of the welfare program to target specific inappropriate interventions. The selection of beneficiaries is validated through Gram Sabhas, whereas
Wherever permitted by law, identity is established through Aadhaar. This leads to the selection of the right
beneficiaries and minimizes duplication and fraud. it has greatly increased
Effectiveness of Government's efforts to tackle multidimensional poverty beyond income
or expenditure based poverty.


In recent years, international research agencies and institutions have developed evidence-based
Suggested a transformational change in the rate of decline in poverty in India. in the context of both
decline in income and chronic poverty, as well as in the case of multidimensional poverty,
India's performance over the past two decades has attracted global attention.
The World Bank defines poverty as a lack of well-being with multiple dimensions. This
low income and the inability to obtain basic goods and services needed for
To live with dignity. Out of the 17 Sustainable Development Goals (SDGs), for which India is
Committed, the first two are to "end poverty and hunger in all its forms". SDG1 by 2030. Till then
reduce the proportion of men, women and children of all ages living in poverty by at least half
All its dimensions as per national definitions. India is committed to achieving not only
Sustainable Development Goals (SDGs), a major proponent of the earlier goal that
Addresses the issue of poverty. This goal commits signatories to poverty alleviation.
$1.25 per person per day (in 2005) according to the general international poverty line
Purchasing Power Parity or PPP) and halve it "according to national definitions" (by goals)
1.1 and 1.2, respectively). United Nations 2030 Agenda for Sustainable Development ratified
Importance of multidimensional approaches to poverty alleviation that go beyond economic
Lack. Various international efforts to measure poverty along with implications for India
It is briefly discussed below:

a) Global Multi Dimensional Poverty Index (MPI)

Launched in 2010 by the United Nations Development Program (UNDP) and Oxford Poverty
and Human Development Initiative (OPHI), MPI is a measure of multidimensional poverty
Covering more than 100 developing countries , It goes beyond income as the sole indicator
Tracks poverty and deprivation in three dimensions and 10 indicators as described below:
I). Education: Years of schooling and child enrollment (1/6 weightage each, 2/6 of the total);
ii). Health: Child mortality and nutrition (1/6 weighting each, 2/6 of the total);
iii). Standard of living: Electricity, floors, drinking water, sanitation, cooking fuel and assets
(1/18 weightage each, 2/6 of the total).
describe how the poverty line is estimated in india

A person is multidimensionally poor if he is deprived of one third or more (mean 33% or
more) weighted out of ten indicators. who are deprived in one half or more
The weighted indicators are considered to be living in extreme multidimensional poverty. MPI Range
From 0 to 1, higher values ​​indicate higher poverty. it is the product of the incidence of poverty
(proportion of poor people) and poverty intensity (average deprivation score of the poor)
People). Currently, it is the most comprehensive measure of multidimensional poverty in comparison.
For the traditional method that measures poverty only in terms of income or monetary terms.
Global Multidimensional Poverty Index (MPI) 2018 Frames it as a success story dedicated to India
Separate chapter for India.
It says, “India has made momentous progress in reducing multidimensional
poverty. The incidence of multidimensional poverty was almost halved between 2005/06 and 2015/16,
climbing down to 27.5%. The global Multidimensional Poverty Index (MPI) was cut by half due to faster progress among the poorest. Thus within ten years, the number of poor people in India fell by more than 271 million – a truly massive gain. The scale of India’s scale of multi-dimensional poverty reduction has global implications that could parallel China’s progress.”

The Global MPI 2018 on India shows that during 2005-06 to 2015-16:
  • Among the 10 selected countries, India (and Cambodia) reduced their MPI values ​​the fastest and The poorest groups were not left behind. Which among the following had the fastest poverty reduction in India? The country's most weak (including Muslims and residents of the poorest states) offering that they are "catching up" with the rest of society.
  • India (along with Ethiopia and Peru) significantly reduced deprivation in all 10 indicators, i.e. nutrition, sanitation, child mortality rate, drinking water, years of schooling, electricity, School attendance, housing, cooking fuel and assets.
  • India exhibits clearest pro-poor pattern at the sub-national level: poorest regions The absolute fastest reduction of multidimensional poverty. poverty reduction in rural areas It has gone beyond this in urban areas. Improvement in average attainment in all of the above 10 Indicators of the middle of the bottom 40% exceeded the indicators of the middle of the total population.
Global MPI 2020 Report Indicates that India
Ranked 62nd out of 107 countries with MPI scores 0.123 and 27.9%  of the population identified as multidimensionally poor, was 36.8% for rural areas and 9.2% for urban India. There were wide variations among states. district-level data shows deep pockets of poverty but also makes impressive progress across the country.
Global MPI reports are providing a more complete picture of who is disadvantaged, how they are
deprived, and where they live. They also capture the significant progress made by India
Reducing multidimensional poverty across the country. Global MPI is also part of Govt.
Under India's decision to monitor the country's performance in 29 select global indices
"Global Index for Promoting Reforms and Growth (GIRG)" 11 Exercises.

b) World Bank Poverty Line

Currently, the World Bank defines extreme poverty as living on less than $1.90 a day, measured by
Purchasing Power Parity Value in 201112
, However, measuring poverty through the proportion of the workforce
Fails to capture the intensity of poverty – individuals with consumption levels marginally below
The poverty line is counted as poor as individuals with consumption levels as high as
further below the poverty line. In what form has the World Bank developed the 'Poverty Gap Index'?
An alternative method of measuring poverty that measures the intensity of poverty is by computing
How much money does a poor family need to reach the poverty line. In other words,
It calculates the reduction in income or consumption from the poverty line. "Poverty Gap Index"
Denied as an average reduction in income or consumption above the international poverty line
($1.90 a day in 2011 international dollars) counting the non-poor as zero reduction,
Expressed as % age of poverty line13
, The poverty gap in India was recorded at 4.3 percent in 2011
According to the World Bank Compendium of Development Indicators, down from 20% in 1977,
Compiled from officially recognized sources. There is a clear positive correlation between
The incidence and intensity of poverty are but far from perfect. For example, India and
Bolivia has a relatively similar poverty gap (meaning the deficit is closer to 4% of the poverty line),
But their poverty rate is very different (the share of the population in poverty in India is 21%,
Whereas in Bolivia it is 7.7%).

c) World Poverty Clock (WPC) 

The WPC is a deliberate insightful system for estimating progress towards the SDGs by world information.the lab. The World Poverty Clock (WPC) gives constant destitution evaluations to up to 2030 (pretty much) every country on the planet. The World Poverty Clock (WPC) is a worldwide model that Tracks neediness progressively. It utilizes openly accessible information on pay dissemination, creation and Spans the normal decadal hole among utilization and mass overview and statistics. As per the WPC, for the last 25 years, the level of the total populace
The quantity of individuals living beneath the outrageous neediness line has dropped from 36% to 10% in 2015. It shows that a In 2015, the quantity of individuals living in outrageous destitution diminished from around 1.9 billion individuals to around 736 million. While much of that progress is due to declines in Southeast Asia and East Asia, China, in particular, the decline in this decade is largely due to South Asia, India in particular. World Poverty Clock displays real-time poverty trends in India, which based on the latest figures from the World Bank, among others. According to recent estimates, the country is on .Track to end extreme poverty by meeting your SDGs by 2030. The current poverty level for India is USD 1.9 $ depending on the poverty line is shown as 4%. 


The last official estimate of poverty released by the Planning Commission in 2011-12 was:
21.92%, which was estimated using the Tendulkar Committee approach. After that, no guesses
has been officially released. NITI Aayog's SDG 2019 report also mentions Tendulkar's poverty
The 21.92% line was adopted as the official poverty line in 2011. It is interesting to know that the global The MPI report 2019 and 2020 puts India's poverty line at 21.2% for 2011-12 (for the year 2011-12), based on the World Bank's poverty line of $1.90 for extreme poverty, pretty close to Tendulkar Committee Based Poverty Line Some of the developments in recent years are briefly discussed below:

a) Task Force constituted by NITI Aayog

In 2015, NITI Aayog constituted a task force on poverty under the then Vice-Chairman of NITI Aayog.
Prof. Arvind Panagariya, The task force deliberated on the issue of whether the poverty line
Required. It was stated that the poverty line and poverty ratio have three possible uses:
identification of the poor; allocation of expenditure on anti-poverty programs in the states or
Area; and tracking poverty over time and across regions. The identity of the poor in India is
Based on below poverty line (BPL) census information done by state governments
The latest of which is the Socio-Economic Caste Census 2011 (SECC 2011). allocation of
Expenditure on anti-poverty programs is also done using tools other than poverty
Ratio. Universal programs such as under Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) and Sarva Shiksha Abhiyan (SSA) are available to all
Question on allocation So the main objective behind measuring poverty is
The need to track overall progress in combating poverty over time and space.
Report of the Task Force based on the work of the Task Force and consultations with the States
Introduced in July 2016. The task force proposed four options for tracking the poor.

i) Tendulkar continues along the poverty line;
ii) switch to Rangarajan or other higher rural and urban poverty lines;
iii) track the progress of the bottom 30% of the population;
iv) Specific components of physical poverty such as nutrition, housing,
Drinking water, sanitation, electricity and connectivity.

It was suggested that options (iii) and (iv) enrich our understanding of progress in coping
Different dimensions of poverty do not replace the poverty ratio approach.

Improving the spending levels of various decisions will not tell us exactly whether
The incidence of poverty is without the specification of the poverty line. Similarly, there is no consensus
Approach to arrive at a single indicator to aggregate various dimensions of poverty
Poverty. The advantage of the level of expenditure as an indicator of poverty is that it is
something that we can see directly and that is closely related to poverty as well in different ways
Dimensions. So it appears that while there are additional complementary approaches
For tracking poverty, none of them can replace the poverty line based approach. without reference
Up to a poverty line, we cannot determine whether a given family has grown out of poverty. to keep track
A poverty line is needed for poverty reduction.
This leaves it to be decided between options (i) and (ii) above. The main criticism of the Tendulkar line is Being low, it risks depriving many deserving families from government programs
By classifying them as Above Poverty Line (APL) families. However, there is a counterargument
That if the objective is to assess whether we are making progress in bringing homes out?
extreme poverty, it calls for setting the poverty line at a level that allows families to achieve two
Plenty of food in a day and other basic necessities of life. It's families below this minimum
an acceptable living standard whose welfare should concern us the most and whose progress we
should be monitored. In other words, if we set the poverty line at a very high level, we would be tracking What percentage of the population has already achieved a certain level of convenience
yet more comfortable. It will fail to inform us about the families in abject poverty. Thus,
The sole purpose behind the poverty line should be to track progress in tackling extreme
Poverty and not identifying specific families/individuals as poor for government purposes
the profit. Therefore, it makes more sense to set it at a level high enough to reach basic
necessities of life. On this ground the case against Tendulkar line is weakened. Settings
The level at which the individual has a comfortable existence, the poverty line will not allow us to
Measure progress in the fate of people in abject poverty. so the task force Recommended that the final decision on the question needs to be communicated further Deliberation with due attention to the above aspect.

b) Update of SECC data

The issue arises whether the Socio-Economic Caste Census (SECC) offers an alternative to the poverty line. SECC allows plans to be targeted for each of the inclusion criteria or deprivation indicators.
To an extent, SECC data is based on the traditional. more robust than and in line with ground reality
Poverty Line, which is based on the consumption expenditure of households - Poverty Line Basket
(PLB). Threshold consumption expenditure is based on a certain assumption that people make
Their basic needs need to be met. Since it is authentic, it is also the subject of debate and controversy.
Secondly, the limit is also based on the household consumption survey on a sample basis and not
Unlike SECC, census of each household. Third, SECC data is also extremely
Details of family members, occupation, level along with granularity, locality and house number
Type of education, type of home, ownership of selected gadgets, among other things. SECC is
It is, therefore, useful to identify potential beneficiaries of social programs like the Affordable
Housing, electricity, water and toilets but not for tracking overall poverty over time. SECC
does not collect information about the overall income or expenditure of the family, which may
Suggest if any family is BPL. even if we started gathering such information over time
Household responses are at high risk of being biased because they know that their responses determine
Whether they will get benefits under various social schemes or not. to maintain usefulness
SECC 2011 data needs to be updated to capture a consolidated view of benefits
Use of updated data for delivery, changes in socioeconomic status and distributed to pro-poor masses
welfare programs can be effectively made using multi-dimensional SECC data, thus
Identifying beneficiaries in different schemes while poverty estimates are relevant for tracking
Progress in combating overall poverty.

c) Establishment of Social Registry

Social Registry is a vibrant information system on beneficiaries and advantages - to promote
Coordination between welfare programs along with involving the beneficiaries. it is being done
Implemented in many countries - Chile, Brazil and Turkey - pioneers in the social implementation
Registry. Sumit Bose committee had suggested leveraging the potential of SECC data
A simple database becomes the core of a social registry information system. it was believed that
Frequent installation of standalone SECCs would be an unnecessary drain on public resources and
could have been avoided. It can be used for the effective implementation of multiple programs by using The capability of SECC and Aadhaar through the development of an integrated MIS interface with an individual
social programme. In India, a system like a social registry is currently being implemented
Some states like Samagra in MP and Bhimashah in Rajasthan.

c) Multidimensional Poverty Index by NITI Aayog

NITI Aayog has constituted Multidimensional Poverty Index Coordination Committee
(MPICC) with the members of the concerned Ministries and Departments16. OPHI. experts of
UNDP, as the publishing agency, has also been included for their technical expertise.
Preparation of an MPI parameter dashboard to rank the States and Union Territories, and a State Reform Action Scheme (SRAP) is in an advanced stage of development. The purpose of the exercise is compelling States to take aggressive poverty reduction measures by competing with each other. Result
UNDP is also expected to be included in the Multidimensional Poverty Index (MPI).

e) Shared Prosperity Goal: Tracking progress below 30-40%

In addition to the poverty reduction goal, in 2013 the World Bank Group adopted
Shared Prosperity Target which it defines as growth of real income of the bottom 40%. this is
strengthened the bank's focus on inclusive growth, lower income levels, and comprehensive
Development agenda that includes inequality. India may also consider tracking reforms
Average standards of living below 30% - 40% of the population17 over time a . In form of
Supplement to poverty line/MPI. Then we can track progress in combating poverty
Analyzing progress in average and average actual expenditure of the bottom 3 or 4 decibels
population over time. This approach reverses the traditional approach. instead of taking
the initial level of absolute expenditure as the poverty line and tracking changes in
the proportion of the population below it over time, it takes a fixed proportion of the population
To be poor from the bottom up and over time change tracks in the fortunes of this population.

fighting extreme poverty

It is now well accepted globally as well as in India that poverty is multidimensional and only
A real dent in poverty can be made by making concerted efforts on its various dimensions. Global
Evidence indicates that India is moving towards the fastest pace of poverty reduction and is meeting
the poverty alleviation target by 2030. Which is at the core of India's national development agenda. average annual maintenance A GDP growth rate of 8% in real terms is an important element of the strategy of building Gain jobs for new entrants to the labour market as well as those facing redundancy
in agriculture or other sectors. Secondly, the targeted program19 aims to directly attack various
aspects of poverty and help the poor. They facilitate income growth financially Deprived of developing agricultural infrastructure and support services, making them productive assets, and developing skills and entrepreneurship. Social Security Measures and Mitigation The risk from natural and other disasters aims to ensure that unforeseen exigencies are not interrupted Efforts to reduce poverty.
Over the years, the emphasis on poor and underprivileged families has been reflected in several sectors. Interventions covering food security, nutritional support Housing for all with basic amenities,
education for all, universal health coverage, road connectivity, social security, employment,
Pradhan Mantri Jan Dhan Yojana is ensuring livelihood diversification, skill development, etc.
Financial inclusion of poor households by delivering universal access to banking facilities
For credit and insurance cover. Pradhan Mantri Jan Arogya Yojana (PMJAY) popularly known as
Ayushman Bharat Yojana scheme aims to provide universal health security to the poor
vulnerable population. Quality houses for the underprivileged under PMAY with basic amenities
Like LPG, electricity, drinking water, toilets etc. are helping in bridging the gap of scarcity.
Emphasis on sustainable assets generating income (farm ponds, wells, goat sheds, cattle sheds, housing
assistance, etc.) through individual beneficiary schemes under Mahatma Gandhi National Rural
An important intervention for the Employment Guarantee Scheme (MGNREGA) for poor families is
Rapid poverty reduction. More than 6 crore families have been included in Self Help Groups under
DAY-NRLM, large scale social capital formation taking place in rural areas in the country
India. Use of IT/Direct as well as SECC 2011 data for beneficiary selection
Benefit Transfer (DBT), Aadhaar, geo-tagging, and other governance and financial reforms have
Changed to benefit the poor. All-weather extension of rural roads Pradhan Mantri Gram Sadak Yojana (PMGSY) has strengthened the potential of the underprivileged Families to take advantage of the markets to their advantage. Feeling poor in India Transformational change in their way of living and access to various services through digital means Like Common Service Center (CSC).

Way forward

There are two important issues in the discussion on poverty in India. one is related to poverty
measurement. The second relates to effective poverty alleviation.
Measures of poverty compare people in society to assess the extent of unacceptable
disadvantages that exist. Yet any measure of poverty is imperfect in itself. imperfect stem
Mainly from two factors: data limitations and the diversity of human life being over-evaluated.
So likes India in a huge country. In addition, the concepts that define basic human needs differ.
Widely according to income, level of development, socio-political beliefs and other factors. This
This is why views on how the poverty line should be defined vary widely. This a. chooses
Poverty Line Difficult to recalculate poverty line based on changes in income,
consumption patterns and prices. In India, poverty measurement has repeatedly
Controversial Debate on the Poverty Line Despite these shortcomings, poverty ideologically
Line 22 and related poverty estimates help to focus public policy discourse around a
Agreed to track the numbers as well as progress in combating poverty.
Over time, priorities have changed with the development in India. Today's aspirational poor search
Improving education, health, housing, skills and consumption, not just the minimum amount of food
and shelter. Therefore, poverty is no longer just about basic food to hold body and soul together.
but about the standard of living – sanitation, housing, piped water, electricity, education, health, and
Jobs. The estimation of the poverty line, if it were to be done at present, cannot be based on the minimum
Expenditure on subsistence basket as done earlier. Also, the current corona pandemic is
underscored the importance of something "essential" - access to quality health care, education and
Awareness, need for water and sanitation facilities, adequate nutrition, and accommodation
Where social distancing can be followed. World Bank has classified India in the following category
Middle-income countries and the corresponding poverty line PPP would be $3.2 (2011 prices).
Which translates into a consumption level of around Rs 75 per person per day. Over time, India
A lower middle income country will need to adjust to the new reality of transition, in
Which means poverty does not mean living on the edge of hunger, but lack of income to take
Take advantage of opportunities thrown up by a growing economy.
Furthermore, deprivations in different regions are positively correlated with each other. It is possible
People who lack resources, they lack education, sanitation and clean water and
health care. These intersections of deprivation also add a critically important dimension to
In directing public policy to understand and tackle poverty. growing in india
Recognition for the need for a multidisciplinary approach to move towards a vision of
Poverty free India. Global MPI is already providing useful information on deprivation in various sectors
regions and at different levels. Current Project for Developing Multidimensional Poverty Index
(MPI) led by NITI Aayog can be expected to provide national, state poverty index
and minimizes the level of granularity with a focus on multidimensionality. While multidimensional and
Income measures of poverty use different and sometimes different types of information.
A complementary approach may provide a more complete view of poverty and better insight
policy action.
It is also important to differentiate between chronic poverty and sporadic poverty: Ex, a
The result of generations of deprivation and, later, the result of a sudden crisis or short-term
Shock like the current corona pandemic. The study of poverty has generally focused on the condition of
being poor instead of 'poverty dynamics' - getting into and out of poverty, and
The processes and factors that determine it. Why are there large numbers of people in India
Persistently poor? What enables those who are poor to escape poverty? why do big
The number of people who are not poor become poor? Study the dynamics of poverty to answer these
The questions may bring about a new understanding of poverty and welfare.
The second aspect relates to the focus on poverty alleviation. exceeding the minimum income or
Consumption limits don't mean lack of education or health won't force
Evidence in poverty back home shows India is successfully addressing
Multidimensional poverty through a variety of interventions. along with the average level of
Poverty, some important socioeconomic indicators like literacy, education and health
Has shown considerable improvement. Global MPI report shows what has been successful and
Where are the critical gaps for future policy making?
However, progress in poverty
The reduction and improvement in socio-economic indicators in India has been marked by
substantial inequalities. Poverty is endemic and concentrated between both social and economic
groups, and those most vulnerable to poverty include landless labourers, marginal farmers,
Socially backward classes and people living in remote areas. Global MPI is also in the report
Highlighted the wide inequalities across states, districts and social groups. two-pronged strategy of
Enabling the economy to grow rapidly (with high employment intensity) on an ongoing basis and
Attacking poverty and eliminating inequalities through social welfare programs remains relevant.
The programs of the Ministry of Rural Development are focused on reducing the poverty of both
Families through MGNREGA, NRLM, PMAY, DDUGKY, and poverty of areas
PMGSY, SPRM, SAGY are on the right track.
The role of rural infrastructure in reducing poverty cannot be overemphasized. Better
Infrastructure fuels change in agriculture from low-productivity casual labor to more
Productive casual work in the non-farm sector. It is also the key to higher wages and helps in
Improvement in literacy rate and school attendance. Thus, poverty reduction pays more
Investment in rural infrastructure is likely to be higher, especially in backward poor states.
The findings of Mission Antyodaya 2020 have broadly highlighted the gaps in the social-distancing-
Economic infrastructure and interventions at the Gram Panchayat level that can be used
Remove the specific shortcomings of Gram Panchayat. Markets and value chains for products can be diversified
rural economies and bring down poverty even faster. Benefits in health, education and
Nurturing outcomes can be manifold through a shared approach to the participant
Development involving community organizations like Panchayati Raj Institutions and Women Self Help Groups.
To whom is India's success in eradicating multidimensional poverty important, even on a global scale?
Achievement of ambitious Sustainable Development Goals (SDGs) that aim to leave no one unattended
behind. As the use of evidence-based policy-making has been widely advocated, it is
Collecting and using accurate data and relevant insights is critical to driving the design of wellness
To find out the programs as well as their impact. SECC 2011 has already proved its mettle
Capacity to target beneficiaries in many social welfare programmes. it needs to be updated
The sooner the data becomes obsolete to avoid the exclusion and inclusion errors. a
Dynamic Social Registry will be extremely useful for achieving India's poverty alleviation
Objective It will help policy makers to make evidence-based decisions by identifying trends and
Intervention hotspots, meaning that public resource officers can be directed more effectively.
A more complete picture provided by the MPI will help monitor the effectiveness of poverty
efforts to reduce, to understand which components of multidimensional poverty are improving,
and those who are not.


  • Alkire Sabina and Maria Emma Santos (2010). Multidimensional poverty index, Oxford Poverty and Human Development Initiative, July.
  • Dandekar V.M. and N. Rath (1971), ‘Poverty in India’, Economic and Political Weekly, Vol. 6, Nos. 1 & 2, January 9.
  • Datta, K. (2010). Index of Poverty and Deprivation in Context of Inclusive Growth. Indian Journal of Human Development, 4 (1), 45-73.
  • Dev Mahendra S (2005). “Calorie Norms and Poverty”, Economic & Political Weekly, 40(8): 789-92.
  • Government of India (2016a). ‘Report of the Expert Group on Socio-Economic Caste Survey”, , Ministry of Rural Development, New Delhi.
  • Government of India (2016b). Eliminating Poverty: Creating Jobs and Strengthening Social Programs, Occasional Paper No. 2, 21. March, NITI Aayog, New Delhi.
  • Government of India (2014). Report of the Expert Group to Review The Methodology For Measurement Of Poverty, Planning Commission, New Delhi.
  • Government of India (2009a). ‘Report of the Expert Group to Review the Methodology for Estimation of Poverty’, Chaired by S.D. Tendulkar, Planning Commission, New Delhi. 
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