Thali index questions India’s poverty decline

Source: The post Thali index questions India’s poverty decline has been created, based on the article “The thali index” published in “Indian Express” on 1st July 2025

UPSC Syllabus Topic: GS Paper2- population and associated issues, poverty and developmental issues And GS Paper 3-food security

Context: The release of the 2023–24 Household Consumption Expenditure Survey by the National Statistics Office triggered widespread discussion on India’s poverty levels. Reports by SBI and the World Bank suggested sharp poverty decline, prompting debate on poverty metrics, standard of living, and the future of subsidies.

For detailed information on India’s poverty reduction has significantly slowed down read this article here

Official Poverty Estimates and Their Limitations

1. Recent Estimates Suggest Sharp Decline: The SBI report estimated rural poverty at 4.86% and urban poverty at 4.09% in FY24. The World Bank report was even more optimistic, stating rural extreme poverty at 2.8% and urban at 1.1% in 2022–23.
2. Political and Analytical Responses: Government supporters claimed these figures reflect policy success. Critics questioned comparability with 2011–12 due to changes in survey methods.
3. Neglect of Standard of Living: Both sides overlooked whether these numbers actually reflect an improved standard of living or whether the current methodology is capable of measuring it meaningfully.

From Calorie Intake to Thali Consumption

1. Calorie-Based Poverty Norm: India’s official poverty line is based on minimum calorie intake, treating food as a source of energy needed for survival and work.
2. Cultural and Nutritional Context: An alternate view treats food as nutrition and satisfaction, shaped by culture. The thali—a balanced meal of rice/roti, lentils, vegetables, and possibly dairy or meat—symbolizes this.
3. Thali as Consumption Metric: The thali is a culturally accepted, balanced unit of food. Measuring affordability of thalis offers a relatable and realistic way to assess standard of living through food.

Thali-Based Assessment Findings

1. High Food Deprivation Levels: Using Crisil’s ₹30 cost for a vegetarian thali and food expenditure data (including PDS and free welfare items), it was found that 40% of rural Indians and 10% of urban residents couldn’t afford two thalis a day.
2. Gap Between Poverty and Food Access:?These findings show higher food deprivation than poverty rates from SBI and the World Bank. This is because actual food expenditure, not total consumption, better reflects the real standard of living.
3. Essential Non-Food Costs: Spending on housing, transport, health, education, and communication is unavoidable. Hence, food becomes the residual, making thali-based analysis more realistic.

Policy Implications and Subsidy Reform

1. Improved Poverty Indicator: The thali index ties poverty to actual food consumed and aligns with calorie-based methods, offering a more grounded metric.
2. Need for Rational Subsidy Use: Low poverty estimates led some to suggest subsidy removal. But thali data indicates subsidies must be rationalised, not removed.
3. Better Targeting of Food Subsidies: In rural areas, the 70th percentile receives nearly the same food subsidy as the 5th, despite being able to afford twice as many thalis. Subsidies should be reduced for the better-off and enhanced for the deprived.

Question for practice:

Discuss how the thali-based approach provides a more realistic measure of standard of living compared to traditional poverty estimates in India.