How poverty line is defined as per the Rangarajan Committee methodology?
Answer: Under Rangarajan Committee methodology, poverty line is estimated as Monthly PerCapita Expenditure of Rs. 1407 in urban areas and Rs. 972 in rural areas.
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Multidimensional poverty estimates from different methodologies:
- NITI Aayog’s Multidimensional poverty estimates are not substitutes for National Sample Survey (NSS) consumption-based poverty ratios.
- The estimates of poverty based on consumer expenditure and using the Tendulkarcommitteemethodology show that the number of poor came down by 137 million despite an increase in population between 2004-05 and 2011-12.
- Under this methodology poverty line was at Rs. 859.6 per capita per month in urban areas and Rs.672.8 per capita per month in rural areas from 2009-2010 and in 2010–11 it was Rs. 1000 for urban and Rs. 816 for rural areas.
- According to the Rangarajan Committee methodology, the decline between 2009-10 and 2011-12 is 92 million, which is 46 million per annum.
- Under this methodology poverty line is estimated as monthly per capita expenditure of Rs. 1407 in urban areas and Rs. 972 in rural areas.
- As per the Global Multidimensional Poverty Index (MPI) of the United Nations Development Programme (UNDP) India has been successful in reducing multidimensional poverty.
- Between 2005/06 and 2015/16– the number of poor people in India fell by more than 271 million.
- The Human Development Index of the United Nations Development Programme arbitrarily weighs sum of non-commensurate indexes.
Why in News? A recent report by NITI Aayog on multidimensional poverty has shown that the percentage of the poor has decreased from 25% in 2015-16 to 15% in 2019-21 and around 135 million people were lifted out of poverty during this period.
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