The expert group headed by Rangarajan dismissed Suresh Tendulkar-led Committee’s methodology on estimating poverty and estimated that the number of poor in India was much higher in 2011-12 at 29.5 percent of the population.
As per the estimates of Rangarajan-led panel, three out of 10 in India would be poor. Estimates based on Tendulkar-led Committee’s methodology, had pegged the poverty ratio at 21.9 percent in 2011-12.
"I don’t think that it is conservative estimates. In my view, it is reasonable estimates. We have derived poverty estimates independently," Rangarajan told a news channel.
He was responding to the criticism that anyone spending more than Rs 47 per day in cities and Rs 32 in villages would not be poor.
“The World Bank also talks about purchasing power parity terms, the minimum expenditure per day. They are talking about USD 2 per day whereas our estimate comes to USD 2.4. Therefore, it is in keeping with the international standards,” he said while elaborating further.     

He explained that the benefits are not being provided on the basis of any poverty line as in the case of food security law, which would benefit 67 percent of the population.
The noted economist urged the people to look at the poverty line in terms of a household's consumption expenditure per month, which is estimated at Rs 4,860 in villages and Rs 7,035 in cities for a family of five persons.
Apart from the private consumption expenditure, the people also benefit from public expenditure on health, education and other facilities, he said, adding that poverty line is at an appropriate level.   


Latest News from India News Desk