Centre Developing National Indicators to Measure Extreme Poverty | Current Affairs | Vision IAS
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Centre Developing National Indicators to Measure Extreme Poverty

Posted 04 Jul 2024

Updated 06 Jul 2024

2 min read

The government in ‘Sustainable Development Goals (SDGs) – National Indicator Framework (NIF) Progress Report, 2024’, revealed that it is developing a national indicator to measure "extreme poverty"

  • NIF tracks India's progress on Sustainable Development Goals (SDGs)’ which aims to eradicate extreme poverty by 2030.

Need for National Indicator

  • Lack of updated official poverty line: India’s official poverty line is based on the Suresh Tendulkar Committee's report in 2009.
    • Committees led by D T Lakdawala (1993), and C Rangarajan (2014) also suggested criteria for “poverty line”.
      • However, C. Rangarajan committee’s report was not adopted by the Centre.
  • Varying global indicators: According to IMF less than 1% of Indians lived in extreme poverty in 2021, whereas according to the World Bank, it was 12.92% in 2021.
  • Policymaking and tracking progress: A reliable poverty estimate is critical for designing, implementing and monitoring anti-poverty programmes.

Measurement of Poverty in India 

  • The Official Poverty line is based on consumption expenditure (stated in rupees).
    • Consumption Expenditure Surveys (CES) are conducted every five years by the National Sample Survey Office.
  • NITI Aayog has launched National Multidimensional Poverty Index (NMPI) according to which poverty reduced to 14.96% in 2019-21 from 24.85% in 2015-16. 

Calculation of Poverty by Suresh Tendulkar Committee

  • A person living on a monthly expenditure of Rs 1,000 per month or Rs 33 or less per day in cities, and Rs 816 per month or Rs 27 or less per day in villages is considered poor.
    • Rangarajan Committee raised this limit and set an income of Rs. 32 for rural India, and Rs. 47 for urban India as the Poverty line limit.
  • Tags :
  • Poverty
  • Tendulkar Committee
  • National Indicator Framework (NIF) 2024
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