Analyzing India’s Policy on Measurement of Poverty: Evolution and Progress Towards Eradicating Extreme Poverty
The government’s ambitious target to eradicate extreme poverty by 2030 has sparked a renewed focus on measuring poverty in India. With the development of a national indicator to track progress, it is crucial to understand the evolution of poverty measurement policies in the country.
Extreme poverty, as defined by the United Nations, refers to individuals living on less than $1.25 per day at purchasing power parity. In India, this threshold was adopted in 2015 and has remained unchanged since then. According to the National Sample Survey Office, nearly 22% of the population, or 269.3 million people, were living in extreme poverty in 2011-12.
The World Bank, on the other hand, uses a threshold of $2.15 per day to define extreme poverty. A recent update in 2023 revealed that 659 million people worldwide fall under this category, with significant numbers in South Asia and Sub-Saharan Africa. The upward revisions in poverty estimates at higher thresholds highlight the challenges faced by these regions.
India has made several attempts to define poverty, with expert groups like the one led by Suresh Tendulkar proposing poverty lines based on income levels. The Tendulkar line, set at Rs 33 per day, remains the official marker of poverty in the country. However, there is also a growing emphasis on measuring multidimensional poverty, which takes into account various aspects of deprivation beyond just income.
The NITI Aayog has developed a national multidimensional poverty index to track progress in reducing poverty across different dimensions. Recent estimates show a significant decline in multidimensional poverty, with millions of people moving out of poverty between 2013-14 and 2022-23. This progress can be attributed to sustained economic growth and targeted welfare schemes implemented by the government.
As India continues its efforts to eliminate poverty in all its forms, the focus on measuring poverty accurately and comprehensively will be crucial. By analyzing the evolution of poverty measurement policies and embracing multidimensional approaches, the country can make significant strides towards achieving its goal of eradicating extreme poverty by 2030.
