{"id":34243,"date":"2023-04-04T10:23:20","date_gmt":"2023-04-04T04:53:20","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=34243"},"modified":"2025-04-20T10:18:19","modified_gmt":"2025-04-20T04:48:19","slug":"poverty-estimation-in-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/poverty-estimation-in-india\/","title":{"rendered":"Poverty Estimation in India"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>The Poverty Estimation in India (Meaning, need, approaches)<\/strong><\/li>\n<li><strong>Key Highlights of the Paper &#8211; \u2018Poverty and Inequality in India: Before and After Covid-19\u2019<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>According to a new paper authored by former Niti Aayog Vice Chairman (Arvind Panagariya), r<strong>ural poverty as a percentage of total rural population declined<\/strong> continuously every quarter beginning July-September 2020.<\/li>\n<li>Based on household expenditures reported in the Periodic Labour Force Survey (PLFS 2020-21), <strong>this estimate contradicts widespread claims showing a large rise in poverty<\/strong> in both rural and urban India post the Covid-19 pandemic.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>The Poverty Estimation in India:<\/strong><\/h2>\n<ul>\n<li><strong>Meaning of poverty: <\/strong>Poverty can be defined as a condition in which an individual or household lacks the financial resources to afford a basic minimum standard of living.<\/li>\n<li><strong>Need for poverty estimation:<\/strong>\n<ul>\n<li><strong>Poverty elimination<\/strong> has remained a major challenge and lies at the core of India&#8217;s national development agenda to create <strong>a just and equitable society<\/strong>.<\/li>\n<li><strong>Reliable estimation of poverty<\/strong> is the first step towards eradication of poverty as a basic input for design, implementation and monitoring of anti-poverty programmes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Approaches of poverty estimation:<\/strong>\n<ul>\n<li>The conventional approach is to specify a minimum expenditure\/income <strong>(poverty line)<\/strong> required to purchase a basket of goods and services necessary to satisfy basic human needs.<\/li>\n<li><strong>Estimation of poverty in India has been based on two critical components:<\/strong>\n<ul>\n<li>Information on the consumption expenditures and its distribution across households is provided by the NSS consumption expenditure surveys;\u00a0<\/li>\n<li>These expenditures by households are evaluated with reference to a given poverty line.<\/li>\n<\/ul>\n<\/li>\n<li>In India, the official poverty definition and numbers are estimated based on the <strong>Consumption Expenditure Survey<\/strong> (CES) conducted by the National Statistical Office (NSO).\n<ul>\n<li>The last published data of CES is available for <strong>2011-12<\/strong>, while the government had junked the CES conducted in 2017-18.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/C55---dPNPEPHb2YCTY2j8_tdUV7ublYey8vOOE5ievnpfcqFjWXVmz_WWLmomL88mQ6dPrC8GGP2OwJfi64YBqkpcflCnH-GV4MbEsOHCDd9gFA8okKqyhO_9xC20xbowmKOwm_3vZD\" alt=\"\" \/><\/p>\n<p>Image Caption: India\u2019s Poverty Analysis<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Key Highlights of the Paper &#8211; \u2018Poverty and Inequality in India: Before and After Covid-19\u2019:<\/strong><\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/pYqm6pGuY_CPFuKhC5nSoeoWxQs7qz1EnS9G_7PxcVJ-9Z4vVcWKJZYW3mh-3byw_yhezpMZ72bgtelucopF__ioACDy8yh1itC2GWaLBxgErcgXr-U5x153N_ctvUaljDMvaRnntT7E\" alt=\"\" \/><\/p>\n<p>Image Caption: Poverty and Inequality in India: Before and After Covid-19<\/p>\n<ul>\n<li><strong>Poverty in rural India:<\/strong>\n<ul>\n<li><strong>It is only during the strict lockdown period<\/strong> (April-June 2020) that rural poverty saw a modest rise.<\/li>\n<li>It fell for the full year 2019-20, at a significantly lower rate and <strong>witnessed a sharp decline in 2020-21<\/strong> as in the pre-Covid year of 2018-19.<\/li>\n<li>These results are consistent with the<strong> robust performance of agriculture<\/strong> (in 2019-20 and 2020-21), significant expansion of <strong>NREGA<\/strong> and free distribution of 5 kg food grain per person per month under the <strong>Food Security Act.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Poverty in urban India:<\/strong>\n<ul>\n<li>It saw a <strong>modest rise<\/strong> on an annual basis in 2020-21 and started to decline by April-June 2021.<\/li>\n<li>The rise in urban poverty for four quarters beginning April-June 2020 was consistent with the <strong>large decline in the production of contact-intensive industries.<\/strong><\/li>\n<li><strong>The free distribution of additional 5 kg food grain <\/strong>helped arrest a sharper rise in urban poverty.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Why does the paper&#8217;s findings (reduction in poverty and inequality) differ from earlier findings (showing increase)?<\/strong>\n<ul>\n<li>This is mainly due to differences in sample design between the <strong>Current Employment Statistics <\/strong>(CES 2011-12)<strong> and PLFS<\/strong> (2017-18).<\/li>\n<li>This makes poverty estimates derived from the two sources entirely <strong>non-comparable<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1)\u00a0 Why was the Suresh Tendulkar Committee constituted?<\/strong><\/h3>\n<p>In 2005, another expert group to review methodology for poverty estimation, chaired by Suresh Tendulkar, was constituted by the Planning Commission to address the shortcomings of the previous methods.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2) Why is the Periodic Labour Force Survey (PLFS)?<\/strong><\/h3>\n<p>It gives estimates of key employment and unemployment indicators like, the Labour Force Participation Rates (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR), etc.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/india\/arvind-panagariyas-new-paper-after-pandemic-poverty-kept-falling-every-quarter-from-july-sept-2020-8536270\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>After pandemic, poverty kept falling every quarter from July-Sept 2020<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/rural.nic.in\/sites\/default\/files\/WorkingPaper_Poverty_DoRD_Sept_2020.pdf\" target=\"_blank\" rel=\"nofollow noopener\"><u>Rural.nic.in<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Poverty is a condition in which an individual lacks financial resources to afford a basic standard of living.<\/p>\n","protected":false},"author":5,"featured_media":34244,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-34243","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=34243"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/34244"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=34243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=34243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=34243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}