India's Poverty Narrative
NITI Aayog’s B.V.R. Subrahmanyam recently made a striking claim that less than 5% of Indians currently live below the poverty line, drawing from the Household Consumption Expenditure Survey (HCES) for 2022-23. This assertion posits a significant decline in poverty levels, suggesting a noteworthy shift in India’s socio-economic landscape.
The poverty line serves as a critical benchmark for gauging economic well-being. In India, this threshold varies between rural and urban regions, with current figures hovering around ₹1,500 for rural areas and ₹1,800 for urban locales, as per the Tendulkar poverty line. This metric, however, has sparked debates on its adequacy and the pressing need for its revision to more accurately reflect contemporary economic realities.
National Sample Survey Organisation (NSSO) data: Shows a 3% annual increase in real consumption.
Counterpoint: This growth might not be evenly distributed.
A noteworthy decline from 12.5% in 2011-12 to a mere 2% in 2022-23, advocating for an upward revision of the poverty line to better capture the essence of extreme poverty and its eradication.
Lack of Official Poverty Line: Currently, India lacks a definitive, government-declared income-based poverty line.
Alternative Measures
Data Discrepancies:
Consumption Increase: He acknowledges a 40% real increase in per capita consumption expenditure over 11 years.
Supporting Data:
In essence:
Low female labor participation: The data reveals a significant portion of women working unpaid (37.5% in 2022-23) compared to paid employment (13%).
The discussion underscores a consensus on the necessity to elevate the poverty threshold. Applying the World Bank’s lower-middle-income criterion reveals a broader spectrum of poverty at 25% in rural areas and 11% in urban zones, culminating in an overall rate of 21%. This disparity calls for a recalibrated approach to poverty measurement, ensuring a more inclusive and realistic assessment of economic hardship.
The discussions surrounding India’s economic growth, consumption patterns, and the reliability of data shed light on the complex interplay between economic development and equitable access to resources. As India strives for economic progress, it is imperative to ensure that growth is inclusive, nutritional well-being is prioritized, and the integrity of statistical data is maintained to inform effective policymaking.
NITI Aayog's claim of less than 5% of Indians living below the poverty line indicates a significant decline in poverty levels, suggesting positive socio-economic changes.
The poverty line serves as a benchmark for assessing economic well-being, varying between rural and urban regions. Currently, it stands at around ₹1,500 for rural areas and ₹1,800 for urban areas.
Alternative measures include the Tendulkar Line, based on minimum calorie intake, and the World Bank's $2.15/day international poverty line. However, these measures have faced criticism for various reasons.
Elevating the poverty threshold is essential to provide a more inclusive and realistic assessment of economic hardship, especially considering disparities in rural and urban poverty rates.
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