Question

How is the poverty line defined in India?

• A. The level of income that ensures basic necessities
• B. The minimum acceptable standard of living
• C. The level of private consumption expenditure ensuring a specific food basket
• D. The calorie intake required for survival

Answer 1

Answer:

C. The level of private consumption expenditure ensuring a specific food basket

• Poverty Line Definition: In India, the poverty line is primarily defined based on the minimum level of private consumption expenditure required to attain a specific food basket.

• Calorie Norms: Historically, the poverty line was linked to a minimum calorie intake, often set at 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.

• Planning Commission's Role: The Planning Commission of India (now NITI Aayog) has been instrumental in estimating poverty and defining the poverty line through various expert groups and methodologies.

• Lakdawala Committee (1993): This committee recommended a shift to a consumption expenditure approach rather than just calorie intake, continuing to use state-specific poverty lines based on CPI-IW (Consumer Price Index for Industrial Workers).

• Tendulkar Committee (2009): This committee proposed a new methodology, considering a basket of goods and services that includes food, education, health, and clothing, leading to a revised poverty line. It also recommended a uniform poverty line across rural and urban areas.

• Rangarajan Committee (2014): This committee reviewed the methodology and suggested a poverty line based on a minimum consumption expenditure for a basket of food and non-food items, aiming to better reflect actual living standards. They proposed higher poverty lines than the Tendulkar committee.

• NITI Aayog's Role: NITI Aayog is now responsible for poverty estimation in India and has been working on developing more robust and multidimensional poverty measurement techniques.

• Multidimensional Poverty Index (MPI): India also utilizes the MPI, which considers deprivations in health, education, and living standards, providing a more comprehensive view of poverty beyond just income or consumption.