| Syllabus: GS-III, Subject: Economy, Topic: Poverty, Issue: Poverty Calculation |
Context: NITI Aayog claimed that less than 5% of Indians now live below the poverty line
- The Claim relies on data from the Household Consumption Expenditure Survey 2022-23.
Argument against reduction poverty:
- Real wages have stagnated, growing by less than 1% annually since 2017.
- Increase in employment is largely due to unpaid family helpers, with a significant portion of women workers remaining unpaid.
- Overall increase in consumption is primarily driven by the higher economic class
- GDP growth is primarily fueled by capital expenditure.
- United Nations report indicating that 74% of Indians cannot afford the minimum nutritious diet prescribed by the FAO, highlighting persistent challenges.
 Issue in poverty calculation in India:
- The Tendulkar poverty line, which is currently used, lacks a conceptual basis.
- Issues with accuracy and comparability of data including base years
Data in India has become highly politicized Egg.- scrapping of the 2017-18 consumer expenditure survey and delays in releasing the PLFS until 2019 Lok Sabha elections
