Roadmap for Answer Writing
1. Introduction
- Objective: Briefly introduce the concept of poverty estimation in India and its significance.
- Context: Mention the post-independence period as the starting point for systematic poverty estimation.
2. Early Estimates
- 1950s-1960s: Establish the initial poverty line.
- Fact: In 1962, the Planning Commission set rural and urban poverty lines at Rs 20 and Rs 25 per capita per year, respectively. (Source: Planning Commission)
3. Key Committees and Their Contributions
- VM Dandekar and N Rath (1971):
- Contribution: First comprehensive assessment using NSS data.
- Fact: Proposed a minimum calorie consumption norm of 2,250 calories per day. (Source: Dandekar and Rath report)
- Alagh Committee (1979):
- Contribution: Focused on nutritional requirements for defining poverty lines.
- Fact: Developed separate poverty lines for rural and urban areas based on these requirements. (Source: Alagh Committee Report)
- Lakdawala Committee (1993):
- Contribution: Suggested state-specific poverty lines and updated them using CPI-IW and CPI-AL.
- Fact: Emphasized the need for a more localized approach to poverty measurement. (Source: Lakdawala Committee Report)
- Tendulkar Committee (2009):
- Contribution: Recommended major changes in poverty estimation methodology.
- Fact: Introduced mixed reference period (MRP) for consumption data and set the poverty line at Rs 446.68 for rural and Rs 578.80 for urban areas in 2004-05. (Source: Tendulkar Committee Report)
- Rangarajan Committee (2012):
- Contribution: Provided a new estimation framework based on a large survey.
- Fact: Set new poverty lines at Rs 32 for rural and Rs 47 for urban areas. (Source: Rangarajan Committee Report)
4. Current Methodology
- NITI Aayog (2011-12):
- Fact: Currently defines the poverty line as Rs 816 per person per month in rural areas and Rs 1,000 in urban areas, using Monthly Per Capita Expenditure (MPCE) as a proxy for income. (Source: NITI Aayog Report)
5. Conclusion
- Summary: Recap the evolution of poverty estimation methodologies and highlight the shift from simplistic measures to more comprehensive assessments that consider various socio-economic factors.
Since India’s independence in 1947, the methodology for estimating poverty has undergone significant transformations, influenced by evolving economic policies, demographic changes, and social considerations. Various committees have played pivotal roles in refining these methodologies to better capture the multifaceted nature of poverty.
1. Dadabhai Naoroji’s Subsistence Approach (1876)
Introduced the “Drain Theory,” highlighting the economic exploitation of India under British rule.
Proposed that poverty resulted from the transfer of wealth from India to Britain, leading to widespread impoverishment.
2. Dandekar and Rath Methodology (1971)
Recommended a poverty line based on the expenditure required to provide 2,250 calories per person per day.
Calculated that a rural individual needed an annual income of ₹170.80, while an urban individual required ₹271.70 to meet basic nutritional needs.
Estimated that 40% of rural and 50% of urban populations lived below this poverty line in 1960–61.
3. Alagh Committee Recommendations (1979)
Adjusted poverty estimates for inflation, ensuring that the poverty line reflected changes in the cost of living.
Calculated poverty lines based on nutritional requirements, considering regional variations in food consumption patterns.
4. Lakdawala Committee Approach (1993)
Introduced state-specific poverty lines, acknowledging regional disparities in living standards and costs.
Discontinued scaling based on National Accounts Statistics, focusing instead on direct consumption measures.
5. Tendulkar Committee Methodology (2009)
Expanded the poverty line basket beyond calorie consumption to include items like clothing, housing, and education.
Recommended a uniform reference period for expenditure reporting, enhancing comparability across items.
Adjusted poverty lines for private expenditures, providing a more accurate reflection of household consumption.
Estimated that 29.8% of the population lived below the poverty line in 2009–10.
6. Rangarajan Committee Reassessment (2014)
Revised the poverty line to ₹972 per person per month in rural areas and ₹1,407 in urban areas, based on normative and behavioral consumption patterns.
Estimated that 29.5% of the population was below the poverty line in 2011–12, highlighting a significant portion of the population living in poverty.
7. Recent Developments and Surveys (2022–2023)
The Ministry of Statistics and Programme Implementation conducted the Household Consumption Expenditure Survey during 2022–23, providing updated data on consumption patterns.
Based on this survey, the State Bank of India reported rural poverty at 7.2% and urban poverty at 4.6% for the period, with new poverty lines set at ₹1,622 per person per month for rural areas and ₹1,929 for urban areas.
These evolving methodologies reflect India’s dynamic approach to poverty estimation, adapting to changing economic landscapes and striving for more accurate and inclusive measures. Each committee’s recommendations have contributed to a nuanced understanding of poverty, influencing policy interventions aimed at poverty alleviation.
The answer provides a good chronological overview of the evolution of poverty estimation in India, clearly mentioning key committees and their contributions. It maintains logical flow and links methodologies with broader socio-economic shifts. However, there are important missing elements that could enhance depth and accuracy.
Firstly, Dadabhai Naoroji’s approach, while foundational, predates independence and focuses on colonial exploitation rather than post-independence poverty measurement — its inclusion is misplaced for this specific question. The Planning Commission’s early poverty assessments, like the 1962 Working Group (which first set a calorie-based poverty line for India post-independence), are missing.
Secondly, key concepts like the shift from calorie-based to consumption expenditure-based poverty lines by the Tendulkar Committee could be better emphasized. Also, the Rangarajan Committee used a different methodology (normative food, education, and health needs), which needs clearer explanation.
Recent developments could also mention NITI Aayog’s Multidimensional Poverty Index (2021) for a fuller picture of contemporary poverty measurement.
Overall, while structured well, the answer needs minor corrections, deeper explanations, and updated facts for completeness.
Dinesh You can use this feedback also
Missing Facts and Data:
1962 Working Group’s calorie norms (2,400 rural, 2,100 urban).
NITI Aayog’s Multidimensional Poverty Index (2021).
Clearer distinction between pre- and post-independence methodologies.
Better explanation of Rangarajan Committee’s revised approach.
Note that Tendulkar moved away from calorie norms entirely.
Since independence, India’s poverty estimation methodology has evolved significantly. Initially, poverty was measured using calorie intake norms. The 1962 Planning Commission defined poverty based on minimum food energy intake—2,400 calories in rural areas and 2,100 in urban. The Alagh Committee (1979) introduced consumption expenditure as a proxy for calorie intake. Later, the Lakdawala Committee (1993) retained calorie norms but excluded health and education spending, leading to criticism.
The Tendulkar Committee (2009) made a major shift by incorporating broader consumption data including education and health, lowering the rural-urban poverty line divide. It estimated 21.9% of Indians lived in poverty in 2011-12. The Rangarajan Committee (2014) set a higher poverty line and included basic needs, estimating poverty at 29.5%.
Each committee’s approach reflected changing socio-economic realities and the need for more inclusive indicators.
Today, multidimensional indices are preferred to capture poverty more holistically.
Your answer is clear and logically sequenced, showing a good understanding of how India’s poverty estimation evolved. You correctly cover major committees like Alagh, Lakdawala, Tendulkar, and Rangarajan, and explain how the methodology shifted over time. The structure is neat, and the mention of multidimensional indices gives a forward-looking conclusion.
However, a few facts and data points are missing or could be improved:
Darshan You can use this feedback also
Missing Facts/Data:
Poverty Line Figures: Specific poverty line figures set by the committees (e.g., ₹32/day urban, ₹27/day rural by Tendulkar; ₹47/day urban, ₹32/day rural by Rangarajan).
Criticisms: More details on criticisms (e.g., Lakdawala’s failure to account for inflation in non-food expenses).
Methodological Changes: Tendulkar’s move from calorie-based to expenditure-based estimation was based on NSSO data (Mixed Recall Period, MRP).
Multidimensional Poverty Index: It would be good to name the Global MPI and mention India’s national MPI initiatives.
Overall Tip: Add key figures and criticisms briefly for a stronger, fact-rich answer without making it lengthy. Well done!