Question

Poverty estimation in India

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

estimate: 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.

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

3. Source: Press Note on Poverty Estimates, 2011-12

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.The table shows national poverty levels for the last twenty years, using

the 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.

Pre-independence poverty estimates:One of the earliest estimations

of poverty was done by Dadabhai Naoroji in his book, ‘Poverty and the

Un-British Rule in India’. He formulated a poverty line ranging from ₹ 16

to ₹ 35 per capita per year, based on 1867-68 prices. The poverty line

proposed by him was based on the cost of a subsistence diet consisting

of ‘rice or flour, dhal, mutton, vegetables, ghee, vegetable oil and salt’.

Next, in 1938, the National Planning Committee (NPC) estimated a

poverty line ranging from ₹ 15 to ₹ 20 per capita per month. Like the

earlier method, the NPC also formulated its poverty line based on ‘a

minimum standard of living perspective in which nutritional requirements

are implicit’. In 1944, the authors of the ‘Bombay Plan’ (Thakurdas et al

1944) suggested a poverty line of ₹ 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 ₹ 20

and ₹ 25 per capita per year respectively. VM Dandekar and N Rath

made the first systematic assessment of poverty in India in 1971, based

on the National Sample Survey (NSS) data from 1960-61. They argued

that the poverty line must be derived from the expenditure that was

adequate to provide 2250 calories per day in both rural and urban

areas. This generated debate on minimum calorie consumption norms

while estimating poverty and variations in these norms based on age

and sex.

On the basis of your understanding of the above passage, answer

ANY TEN questions from the eleven given below: 10 marks

i. The Planning Commission estimates levels of poverty in the

country on the basis of:

a. surveys conducted by the NSSO

b. consumer expenditure survey conducted by NSSO

c. expenditure surveys conducted by NSSO

d. after adjusting for the difference in prices due to inflation

. According to the passage, the percentage of the population living

below the poverty line in India has decreased up to ________

from 2004-05 to 2011 -12:a. 12%

b. 15%

c. 13%

d. 25%

. "Like the earlier method, the NPC also formulated its poverty

line..." The earlier method here means:

a. Method formulated by Tendulkar Committee

b. Method of conducting a survey of consumer's expenditure

c. Method formulated by Dadabhai Naoroji

d. The method mentioned in the book Bombay Plan

. "This generated debate on minimum calorie consumption norms

while estimating poverty and variations in these norms based on

age and sex." This here refers to:

a. A poverty line ranging from ₹ 16 to ₹ 35 per capita per year

b. A poverty line ranging from ₹ 15 to ₹ 20 per capita per

month.

c. Poverty lines for rural and urban areas – of ₹ 20 and ₹ 25

per capita per year respectively.

d. Poverty line derived from expenditure that was adequate to

provide 2250 calories per day in both rural and urban areas.

. Based on the passage, choose the option that correctly

demonstrates the poverty estimates for 2009-10:Based on the passage, choose the options that list the statements

that are TRUE according to the information:

​

Answer 1

From the given question the correct answer is :

i.answer

c. expenditure surveys conducted by NSSO

ii.Answer

b. 15%

iii .Answer

d. The method mentioned in the book Bombay Plan

iv.answer

c. Poverty lines for rural and urban areas – of ₹ 20 and ₹ 25

v . Answer

They argued  that the poverty line must be derived from the expenditure that was  adequate to provide 2250 calories per day in both rural and urban  areas. This generated debate on minimum calorie consumption norms  while estimating poverty and variations in these norms based on age  and sex.

Answer 2

Explanation:

Hello,

1=c

2=b

3=d

4=c

Here is your answer..