Poverty Line: Measurement, Debate, and Policy Implications
TOPIC CLASSIFICATION
Subject: Indian Economy - Poverty & Inequality
Sub-topic: Poverty Line - Estimation Methods, Committees, and Policy Implications
Mains GS Paper-III: Poverty and hunger; measurement issues; government schemes.
EXAMINER REASONING
Poverty measurement is a conceptually tricky topic that UPSC uses to test analytical rigour. Prelims often asks about: the Tendulkar Committee (₹33/day urban, ₹27/day rural - 2011-12), the Rangarajan Committee (₹47/day urban, ₹32/day rural), and the multidimensional poverty index (MPI) methodology. Mains questions typically: (a) critique the consumption expenditure survey methodology, (b) debate the Tendulkar vs. Rangarajan poverty lines, (c) evaluate the relationship between poverty reduction and GDP growth. The 2023 NITI MPI report is now the most current hook.
Core Concept
What is the Poverty Line? A threshold of minimum income/consumption below which a person is considered poor. In India, it's consumption-based (not income-based) - measured via household consumption expenditure surveys.
Key Committees:
| Committee | Year | Poverty Line (per capita per day) | Methodology |
|---|---|---|---|
| Alagh Committee | 1979 | ₹49.09 (rural), ₹56.64 (urban) (1973-74) | Calorie intake - 2400 kcal (rural), 2100 kcal (urban) |
| Lakdawala Committee | 1993 | Updated Alagh using CPI-AL/CPI-IW | Fixed calorie... |
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