\n\n<\/span>Dealing with the Challenges of Poverty<\/strong><\/span><\/span><\/h2>\nIndia is adopting the “graduation approach,” an innovative poverty alleviation strategy pioneered by the Bangladesh Rural Advancement Committee (BRAC) and successfully implemented across 50 countries. This model moves beyond conventional cash handouts, offering holistic support to ultra-poor families through social protection, empowerment, financial inclusion, and livelihood development. While these initiatives show promise, India still faces significant challenges in effectively tackling its widespread poverty.<\/span><\/p>\nHistory of Poverty Estimation in India<\/strong><\/span><\/h3>\nEvolution of Poverty Estimation in India<\/strong><\/span><\/h4>\nPre-Independence Period:\u00a0<\/span> \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/span><\/h5>\nDadabhai Naoroji’s Poverty Line (1867):<\/strong><\/span><\/p>\n\n- In his seminal work “Poverty and the Un-British Rule in India,” Dadabhai Naoroji provided one of the earliest estimates of poverty in India.<\/span><\/li>\n
- He defined a poverty line based on minimum subsistence requirements, estimating it to be between \u20b916 and \u20b935 per capita annually at 1867-68 prices.<\/span><\/li>\n
- His methodology focused on the cost of basic food, clothing, and shelter necessary for survival.<\/span><\/li>\n<\/ul>\n
National Planning Committee (1938):<\/strong><\/span><\/p>\n\n- Formed under the leadership of Subhash Chandra Bose, the committee recommended ensuring a minimum standard of living.<\/span><\/li>\n
- In 1944, the Bombay Plan proposed a poverty line of \u20b975 per capita annually.<\/span><\/li>\n<\/ul>\n
Post-Independence Period:<\/strong><\/span><\/h5>\nFirst Official Attempt (1962):<\/strong><\/span><\/p>\n\n- The Working Group of the Planning Commission defined poverty in terms of consumption expenditure.<\/span><\/li>\n
- It recommended a minimum monthly consumption expenditure of \u20b9100 per household (five persons or four adult units) or \u20b920 per capita, based on 1960-61 prices.<\/span><\/li>\n<\/ul>\n
Dandekar and Rath Committee (1971):<\/strong><\/span><\/p>\n\n- The first systematic assessment of poverty in India, led by V.M. Dandekar and N. Rath, utilized National Sample Survey (NSS) data.<\/span><\/li>\n
- It suggested defining the poverty line based on an expenditure ensuring a daily calorie intake of 2,250 calories for both rural and urban areas.<\/span><\/li>\n
- For rural areas, a minimum of \u20b917 per capita was deemed necessary to meet basic nutritional needs.<\/span><\/li>\n<\/ul>\n
Alagh Committee (1979):<\/strong><\/span><\/p>\n\n- This committee established separate poverty lines for rural and urban areas based on nutritional requirements and associated consumption expenditures.<\/span><\/li>\n
- It recommended updating poverty estimates by adjusting for inflation, laying the groundwork for subsequent methodologies.<\/span><\/li>\n<\/ul>\n
Lakdawala Committee (1993):<\/strong><\/span><\/p>\n\n- The committee retained calorie-based poverty estimation but introduced state-specific poverty lines, updated using the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and Consumer Price Index for Industrial Workers (CPI-IW) for urban areas.<\/span><\/li>\n
- It discontinued scaling poverty estimates using National Accounts Statistics.<\/span><\/li>\n<\/ul>\n
Tendulkar Committee (2009):<\/strong><\/span><\/p>\n\n- This committee moved away from calorie-based estimations, adopting a broader consumption basket that included health and education expenses.<\/span><\/li>\n
- It introduced uniform poverty lines for rural and urban areas. For 2004-05, the poverty line was set at \u20b9446.68 for rural areas and \u20b9578.80 for urban areas, equivalent to \u20b933\/day in PPP terms.<\/span><\/li>\n<\/ul>\n
Rangarajan Committee (2014):<\/strong><\/span><\/p>\n\n- Using large household surveys, it set poverty thresholds at \u20b932\/day (rural) and \u20b947\/day (urban), based on normative nutritional and behavioral standards.<\/span><\/li>\n
- However, the government rejected its recommendations, and Tendulkar’s methodology remains the benchmark.<\/span><\/li>\n<\/ul>\n
Modern Developments:<\/strong><\/span><\/h5>\nMultidimensional Poverty Index (MPI):<\/strong><\/span><\/p>\n\n- Introduced in 2010 by the UNDP and Oxford Poverty and Human Development Initiative, the MPI measures poverty across multiple dimensions, including education, health, and living standards.<\/span><\/li>\n
- India has adopted MPI to capture non-income-based aspects of poverty.<\/span><\/li>\n<\/ul>\n
Periodic Labour Force Surveys (PLFS):<\/strong><\/span><\/p>\n\n- These surveys provide updated data on income and employment, contributing to poverty assessments and addressing labour market dynamics<\/span><\/li>\n<\/ul>\n
![\"https:\/\/triumphias.com\/sociology-offline.php\"](\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/11\/WhatsApp-Image-2024-11-28-at-16.08.34-1-104x150.jpeg\") <\/h4>\nCurrent Status of Poverty in India<\/strong><\/span><\/h4>\nStatus:<\/strong><\/span><\/p>\n\n- India has achieved a substantial decline in multidimensional poverty, dropping from 29.17% in 2013-14 to 11.28% in 2022-23, marking a reduction of 17.89 percentage points.<\/span><\/li>\n
- However, as of 2024, nearly 129 million Indians still live in extreme poverty, surviving on less than $2.15 (approximately \u20b9181) per day.<\/span><\/li>\n<\/ul>\n
Rural vs. Urban Disparity:<\/strong><\/span><\/p>\n\n- The poverty headcount ratio in rural areas fell significantly from 32.59% to 19.28%, while in urban areas, it declined from 8.65% to 5.27%.<\/span><\/li>\n
- This indicates a pro-poor bias, with rural regions experiencing a faster decline in poverty levels compared to urban areas.<\/span><\/li>\n<\/ul>\n
Key Indicators Driving Progress:<\/strong><\/span><\/p>\n
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