Poverty Estimation In India – C Rangarajan and Tendulkar Committee
- To Measures Exact numbers of Poor People And Per capita expenditure various methods Had been adopted by Government of India.
- The official measure of Indian government, before 2005, was based on food security and it was defined from per capita expenditure for a person to consume enough calories and be able to pay for associated essentials to survive.
- Since 2005, Indian government adopted the Tendulkar methodology which moved away from calorie anchor to a basket of goods and used rural, urban and regional minimum expenditure per capita necessary to survive.
- The Planning Commission has been estimating the number of people below the poverty line (BPL) at both the state and national level based on consumer expenditure information collected as part of the National Sample Survey Organization (NSSO) since the Sixth Five Year Plan.
- The latest available data from such surveys is from NSSO conducted in 2004-05.
Government Of India Formed various Committees for Poverty Estimation In India
- Alagh Committee (1977),
- Lakdawala Committee (1989)
- Tendulkar Committee (2005)
- Saxena committee
- Hashim Committee
- C . Rangrajan Committee ( 2012)
Poverty Line Estimation
|Set Up By||Planning Commission||Planning Commission|
|Set Up In||2005||2012|
|Poverty Estimation Method||Per capita Expenditure Monthly||Monthly Expenditure of family of five.|
|Urban Poverty Line Per Day per Person||33||47|
|Urban Poverty Line Per Month per Person||1000||1407|
|Urban Poverty Line Per Month, Family of Five Members||5000||7035|
|Rural poverty line Per Day Per Person||27||32|
|Rural poverty line (Rs) per Month Per Person||816||972|
|Rural poverty line (Rs) Per month Family Of Five Members||4080||4860|
|BPL ( Below Poverty Line ) In crore||27 crore||37 crore|
|Calorie Expenditure||only calorific value in Expenditure||Calorie +Protein + fat|
|Calories In Rural Areas||2400||2155|
|Calories In Urban areas||2100||2090|
|Main Focus Areas||Only counts Expenditure on food, health, education, clothing.||1-food
2- nonfood items such as education,
7- non-food items that meet nutritional requirements.
- C Rangarajan Committee Was Set up By Planning commission In 2012 And Submitted Report In 2014.
- The Planning commission had set up the five-member expert group under Rangarajan to review the methodology for measurement of poverty.
- The committee was set up in the backdrop of national outrage over the Planning Commission’s suggested poverty line of Rs 22 a day for rural areas.
- The Rangarajan committee estimation is based on an independent large survey of households by Center for Monitoring Indian Economy (CMIE).
- It has also used different methodology wherein a household is considered poor if it is unable to save.
- The methods also include on certain normative levels of adequate nourishment, clothing, house rent, conveyance, education and also behavioral determination of non-food expenses.
- It also considered average requirements of calories, protein and fats based on ICMR norms differentiated by age and gender.
- Based on this methodology, Rangarajan committee estimated the number of poor were 19 per cent higher in rural areas and 41 per cent more in urban areas than what was estimated using Tendulkar committee formula.
- Tendulkar, an economist, had devised the formula to assess poverty line in 2005, which the Planning Commission had used to estimate poverty in 2009-10 and 2011-12.