{"id":324528,"date":"2025-01-24T18:14:06","date_gmt":"2025-01-24T12:44:06","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=324528"},"modified":"2025-01-25T18:41:25","modified_gmt":"2025-01-25T13:11:25","slug":"understanding-poverty-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/understanding-poverty-in-india\/","title":{"rendered":"Understanding Poverty in India"},"content":{"rendered":"

Source: <\/strong>This post on Understanding Poverty in India <\/strong>has been created based on article \u201c<\/strong>Is poverty being underestimated in India?<\/a>\u201d<\/strong> published in The Hindu on 24th<\/sup> January 2025.<\/p>\n

UPSC Syllabus topic: <\/strong>GS Paper 2- Issues relating to Poverty and Hunger.<\/p>\n

Context: <\/strong>The article addresses the ongoing debate surrounding poverty estimation in India, especially in light of recent data released by the government.<\/p>\n

\"Poverty<\/p>\n

How has poverty been historically defined in India?<\/strong><\/h2>\n
    \n
  1. From the late 1970s to 2005, poverty was defined by the expenditure required to sustain a minimum calorie diet, with updates every five years based on NSSO data.<\/li>\n
  2. Initially, NSS estimates closely matched National Accounts, but over time, discrepancies arose.<\/li>\n
  3. The Tendulkar Committee later revised poverty estimation methods. After 2011-12, the government neither published official poverty estimates nor conducted new surveys, leading to alternative poverty measures such as the multidimensional poverty index.<\/li>\n<\/ol>\n

    Has poverty been underestimated in India?<\/strong><\/h2>\n

    For<\/strong>:<\/p>\n

      \n
    1. Poverty estimates depend on the poverty line and data. Claims of drastic reductions in poverty are questionable due to inconsistencies in methodologies and poverty lines.<\/li>\n
    2. For example, newer data collection methods, like the modified mixed reference period (MMRP), lead to higher expenditure estimates, which can lower poverty estimates when applied to older poverty lines.<\/li>\n<\/ol>\n

      Against: <\/strong><\/p>\n

        \n
      1. Poverty has drastically reduced over the last two decades due to factors like high GDP growth, flagship government programs, and the National Food Security Act.<\/li>\n
      2. Using any method, poverty estimates for 2022-23 were close to 10%, and recent data suggest it might now be in single digits.<\/li>\n
      3. However, defining poverty in broader terms beyond calorie consumption is essential.<\/li>\n<\/ol>\n

        What are the issues with HCES data collection and methodology?<\/strong><\/h2>\n

        For:<\/strong><\/p>\n

          \n
        1. Over the years, there has been a divergence between NSSO consumption data and National Accounts.<\/li>\n
        2. Experimenting with recall periods (e.g., seven days for food items, 30 days for others) has made older and newer data incomparable.<\/li>\n
        3. The NSSO\u2019s current methodology, involving three household visits for better recall, gives higher expenditure estimates but lacks an updated poverty line suited to this data.<\/li>\n<\/ol>\n

          Against: <\/strong><\/p>\n

            \n
          1. The old uniform reference period (URP) approach is outdated, as it fails to capture infrequent expenditures.<\/li>\n
          2. Modern methods are better suited to reflect broader consumption patterns, such as spending on services.<\/li>\n
          3. While criticisms exist, the data suggest a significant decline in poverty\u2014closer to 17% or more\u2014since 2011-12.<\/li>\n<\/ol>\n

            What does the data reveal about rural and urban poverty?<\/strong><\/h2>\n

            For:<\/strong><\/p>\n

              \n
            1. Rural-urban consumption gaps are narrowing, with rural areas showing diversified consumption patterns similar to urban areas.<\/li>\n
            2. However, the rural-urban classification, based on the 2011 Census, is outdated, as many rural areas are now peri-urban.<\/li>\n<\/ol>\n

              Against:<\/strong><\/p>\n

              Against:<\/strong><\/p>\n

                \n
              1. If peri-urban regions are reclassified as urban, urban poverty would likely show a sharper decline.<\/li>\n
              2. Nevertheless, public policy interventions continue to play a vital role in reducing poverty across both rural and urban areas.<\/li>\n<\/ol>\n

                Is there a need for an upward revision of the poverty line?<\/strong><\/h2>\n

                For:<\/strong><\/p>\n

                  \n
                1. Some studies, such as one by the Foundation for Agrarian Studies using the Rangarajan methodology, estimated poverty at 25% in 2022-23.<\/li>\n
                2. However, this lacks consensus. A clear and consistent methodology is necessary, but achieving agreement remains challenging.<\/li>\n<\/ol>\n

                  Against:<\/strong><\/p>\n

                    \n
                  1. The UNDP poverty line of $2.15\/day estimated poverty at 12.9% in 2019. NITI Aayog\u2019s estimates are also lower than the 25% figure cited.<\/li>\n
                  2. A single, consistent poverty line is essential for accurate measurement.<\/li>\n<\/ol>\n

                    Are criticisms of the index valid?<\/strong><\/h2>\n

                    For:<\/strong><\/p>\n

                      \n
                    1. The UNDP\u2019s framework allows countries to customize their indices.<\/li>\n
                    2. India\u2019s inclusion of additional indicators, such as bank accounts and maternal health, is appropriate for its context. Broadening the basket is a step in the right direction.<\/li>\n<\/ol>\n

                      Against:<\/strong><\/p>\n

                        \n
                      1. The index has limitations. Many indicators, like access to electricity or bank accounts, are permanent improvements, meaning households will not be deprived in the future. This creates a downward bias in poverty estimates.<\/li>\n
                      2. Additionally, the index does not account for income vulnerability, which should be measured.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

                        Source: This post on Understanding Poverty in India has been created based on article \u201cIs poverty being underestimated in India?\u201d published in The Hindu on 24th January 2025. UPSC Syllabus topic: GS Paper 2- Issues relating to Poverty and Hunger. Context: The article addresses the ongoing debate surrounding poverty estimation in India, especially in light… Continue reading Understanding Poverty in India<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":324660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[212,8131,10498],"class_list":["post-324528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","tag-gs-paper-2","tag-social-issues","tag-the-hindu","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Poverty-in-India.png?fit=1280%2C850&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/324528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=324528"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/324528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/324660"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=324528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=324528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=324528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}