Syllabus: GS-III, Subject: Economy, Topic: Growth and Development, Inclusion
Issue: Analysis of Household Consumption Expenditure Survey (HCES), 2022-23,
Context: Recently released HCES-2022-23
- A) Analyzing the changes in poverty line as per HCES using different methodology
- Tendulkar methodology: decline in poverty ratios from 2011-12 to 2022-23.( total poverty 6.3% in 2022-23)
- State Bank of India report: Rural poverty declines from more than 25% to nearly 7% and urban poverty from around 14% to around 4%%.
- Rangarajan Method: Overall poverty ratio (2022-23) is estimated at around 10%.
- B) Implications of the HCES 2022-23 for the Consumer Price Index (CPI)
- Decline in monthly per capita expenditure on food items and increase in non-food items has an implication for CPI index weightage.
- Monetary policy committee may need to work with a new price index reflecting changing consumption patterns.
