describe how the poverty line is estimated in india
Answers
Answer:
The percentage of the population living below the poverty line in India decreased to 22% in 2011-12 from 37% in 2004-05, according to data released by the Planning Commission in July 2013. This blog presents data on recent poverty estimates and goes on to provide a brief history of poverty estimation in the country. National and state-wise poverty estimates The Planning Commission estimates levels of poverty in the country on the basis of consumer expenditure surveys conducted by the National Sample Survey Office (NSSO) of the Ministry of Statistics and Programme Implementation.
The current methodology for poverty estimation is based on the recommendations of an Expert Group to Review the Methodology for Estimation of Poverty (Tendulkar Committee) established in 2005. The Committee calculated poverty levels for the year 2004- 05. Poverty levels for subsequent years were calculated on the basis of the same methodology, after adjusting for the difference in prices due to inflation. Table 1 shows national poverty levels for the last twenty years, using methodology suggested by the Tendulkar Committee. According to these estimates, poverty declined at an average rate of 0.74 percentage points per year between 1993-94 and 2004-05, and at 2.18 percentage points per year between 2004-05 and 2011-12. Table 1: National poverty estimates (% below poverty line) (1993 - 2012)
Year
Rural
Urban
Total
1993 – 94
50.1
31.8
45.3
2004 – 05
41.8
25.7
37.2
2009 – 10
33.8
20.9
29.8
2011 – 12
25.7
13.7
21.9
Source: Press Note on Poverty Estimates, 2011 – 12, Planning Commission; Report of the Expert Group to Review the Methodology for Estimation of Poverty (2009) Planning Commission; PRS. State-wise data is also released by the NSSO. Table 2 shows state-wise poverty estimates for 2004-05 and 2011-12. It shows that while there is a decrease in poverty for almost all states, there are wide inter-state disparities in the percentage of poor below the poverty line and the rate at which poverty levels are declining. Table 2: State-wise poverty estimates (% below poverty line) (2004-05, 2011-12)
State
2004-05
2011-12
Decrease
Andhra Pradesh
29.9
9.2
20.7
Arunachal Pradesh
31.1
34.7
-3.6
Assam
34.4
32
2.4
Bihar
54.4
33.7
20.7
Chhattisgarh
49.4
39.9
9.5
Delhi
13.1
9.9
3.2
Goa
25
5.1
19.9
Gujarat
31.8
16.6
15.2
Haryana
24.1
11.2
12.9
Himachal Pradesh
22.9
8.1
14.8
Jammu and Kashmir
13.2
10.4
2.8
Jharkhand
45.3
37
8.3
Karnataka
33.4
20.9
12.5
Kerala
19.7
7.1
12.6
Madhya Pradesh
48.6
31.7
16.9
Maharashtra
38.1
17.4
20.7
Manipur
38
36.9
1.1
Meghalaya
16.1
11.9
4.2
Mizoram
15.3
20.4
-5.1
Nagaland
9
18.9
-9.9
Odisha
57.2
32.6
24.6
Puducherry
14.1
9.7
4.4
Punjab
20.9
8.3
12.6
Rajasthan
34.4
14.7
19.7
Sikkim
31.1
8.2
22.9
Tamil Nadu
28.9
11.3
17.6
Tripura
40.6
14.1
26.5
Uttar Pradesh
40.9
29.4
11.5
Uttarakhand
32.7
11.3
21.4
West Bengal
34.3
20
14.3
All Inda
37.2
21.9
15.3
In 1944, the authors of the ‘Bombay Plan’ (Thakurdas et al 1944) suggested a poverty line of Rs 75 per capita per year. Post independence poverty estimates: In 1962, the Planning Commission constituted a working group to estimate poverty nationally, and it formulated separate poverty lines for rural and urban areas – of Rs 20 and Rs 25 per capita per year respectively. VM Dandekar and N Rath made the first systematic assessment of poverty in India in 1971, based on National Sample Survey (NSS) data from 1960-61.
Committee
Rural
Urban
Total
Lakdawala Committee
28.3
25.7
27.5
Tendulkar Committee
41.8
27.5
37.2
Source: Report of the Expert Group on Estimation of Proportion and Number of Poor, 1993, Perspective Planning Division, Planning Commission; Report of the Expert Group to Review the Methodology for Estimation of Poverty, 2009, Planning Commission; PRS The Committee also recommended a new method of updating poverty lines, adjusting for changes in prices and patterns of consumption, using the consumption basket of people close to the poverty line. Thus, the estimates released in 2009-10 and 2011-12 use this method instead of using indices derived from the CPI-AL for rural areas and CPI-IW for urban areas as was done earlier. Table 5 outlines the poverty lines computed using the Tendulkar Committee methodology for the years 2004-05, 2009-10 and 2011-12. Table 5: National poverty lines (in Rs per capita per month) for the years 2004-05, 2009-10 and 2011-12
Year
Rural
Urban
2004-05
446.7
578.8
2009-10
672.8
859.6
2011-12
816.0
1000.0
Explanation:
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Answer:
the poverty line is discriminated in rular and urban area on two categories
1. income level
2.consumption level
In income level in which people have earn more than 816 rs in rular area and 1000 rs in urban area per month so he is above poverty line.
In consumption level people have consume more than 1800 calorie per day in urban areas and 2100 calorie per day in rular area so he is above poverty line.
Explanation: