Has poverty really dropped to 5% in India?

La Excellence IAS Academy

Has poverty really dropped to 5% in India?

Current Affairs Daily Editorials

La Excellence IAS Academy | March 15, 2024 | Economy

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

Leave a Reply