Measurement: Poverty line, Tendulkar and Rangarajan committees

  1. Poverty Line is a benchmark used to measure the level of poverty in a country.
  2. It is based on the minimum income required to meet basic needs like food, clothing, and shelter.
  3. In India, the Planning Commission traditionally estimated poverty using the poverty line concept.
  4. Poverty estimation is conducted by organizations like the NITI Aayog and the Ministry of Statistics and Programme Implementation.
  5. The Tendulkar Committee was formed in 2005 to review and update the poverty estimation methodology.
  6. The Tendulkar Committee emphasized consumption expenditure rather than income.
  7. It adopted a uniform Poverty Line Basket (PLB) across rural and urban areas.
  8. The committee shifted focus to caloric intake and included health and education expenses in poverty calculations.
  9. As per the Tendulkar methodology, the poverty line was defined at Rs. 816 per month in rural areas and Rs. 1,000 in urban areas (2011-12 prices).
  10. The Rangarajan Committee was established in 2012 to refine the poverty measurement further.
  11. The Rangarajan Committee introduced a multi-dimensional approach to poverty estimation.
  12. It included a higher level of expenditure for defining the poverty line to account for improved living standards.
  13. The poverty line under the Rangarajan Committee was set at Rs. 972 per month in rural areas and Rs. 1,407 in urban areas (2011-12 prices).
  14. The headcount ratio is a common measure of poverty derived from the poverty line.
  15. The committees faced criticism for setting the poverty line too low, excluding many individuals in need of support.
  16. India uses both absolute poverty and relative poverty measurements.
  17. The absolute poverty line is based on caloric needs and essential expenditures.
  18. Relative poverty compares income distribution across the population.
  19. Poverty lines differ across states due to variations in cost of living.
  20. The multi-dimensional poverty index (MPI) supplements income-based measures with broader indicators.
  21. Challenges in poverty measurement include data accuracy, regional disparities, and changing consumption patterns.
  22. Government schemes like PM-KISAN and MGNREGA aim to reduce poverty through direct income support.
  23. India's poverty reduction strategy involves a combination of economic growth and welfare programs.
  24. As of recent estimates, India has made significant progress in reducing extreme poverty.
  25. The United Nations' Sustainable Development Goal 1 aims to eradicate poverty by 2030.
  26. Poverty alleviation is integral to India's broader goals of economic and social development.
Category
Poverty in India
Poverty and Unemployment
Economics and Social Development