Global Poverty and India's Estimates

Context:

• The International Day for the Eradication of Poverty (IDEP) has been observed annually on October 17 since 1992.

Background:

• The theme for the 2024 IDEP is “Ending Social and Institutional Maltreatment, Acting Together for Just, Peaceful, and Inclusive Societies”.

Key Takeaways:

1. Global Poverty Line:

   • According to the World Bank, anyone living on less than $2.15 per day is considered to be in extreme poverty.

2. Poverty Measurement in India:

   • Based on the Household Consumption Expenditure Survey for 2022-23, less than 5% of Indians are expected to live below the poverty line.
   • However, there is ongoing debate regarding the poverty line used to determine the level of deprivation.

Evolution of Poverty Estimates in India:

1. 1971 – Dandekar and Rath Definition:

   • The poverty line was based on daily calorie consumption (2,250 calories) from the National Sample Survey (1960-61).
   • It was set at Rs 15 for rural areas and Rs 22.5 for urban areas.

2. 1979 – Y K Alagh Task Force:

   • Revised calorie requirements: 2,400 calories for rural and 2,100 calories for urban areas.
   • This remained the official method until the 1990s, though many critiqued it for providing an inaccurate picture of poverty.

3. 1989 – Lakdawala Expert Group:

   • Introduced state-specific poverty lines that adjusted for regional price differences but faced criticism for not adhering to original calorie norms.

4. 2005 – Tendulkar Expert Group:

   • Recommended moving away from calorie consumption as the primary indicator of poverty.
   • Proposed a uniform poverty line basket for rural and urban areas.
   • Suggested accounting for private expenditure on health and education.
   • Used the Mixed Reference Period for poverty estimation.
   • In 2009, the Tendulkar Committee estimated the poverty line for 2004-05 as Rs 446.68 (rural) and Rs 578.80 (urban) per capita per month.

5. 2012 – Rangarajan Committee:

   • Reinstated separate poverty lines for rural and urban areas at Rs 972 (rural) and Rs 1,407 (urban) per capita per month.
   • However, the government did not officially adopt the report.

6. Last Official Data (2011-12):

   • The last official poverty data, released in 2013 based on the Tendulkar line, indicated that 21.9% of India's population was living below the poverty line.