UPSC Mains Answer: Though there have been several different estimates of poverty in India, all indicate reduction in poverty levels over time. Do you agree? Critically examine with reference to urban and rural poverty indicators.

Difficulty Level: Medium

Pre-requisite: Foundational knowledge of India’s poverty estimation committees (Lakdawala, Tendulkar, Rangarajan) and their methodologies, including expenditure-based poverty lines, calorie norms, and the Multidimensional Poverty Index (MPI). Familiarity with post-1991

Sub-category: Social Justice (Welfare Schemes for Vulnerable Sections)

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Poverty estimation in India has evolved through multiple methodologies, reflecting a broad consensus on declining poverty levels, albeit with variations in urban and rural contexts. Historically, the Planning Commission’s Lakdawala Committee (1993) and the Tendulkar Committee (2009) adopted expenditure-based poverty lines, while the Rangarajan Committee (2014) incorporated calorie norms and non-food expenditures. These estimates consistently show a reduction in poverty: from 45% in 1993-94 to 21.9% in 2011-12 (Tendulkar), and further to 29.5% (Rangarajan). However, the decline is uneven across regions and demographics.
Rural poverty has seen a sharper decline due to targeted schemes like MGNREGA, PDS reforms, and agricultural subsidies, which improved livelihoods and food security. The rural poverty ratio dropped from 50.1% in 1993-94 to 25.7% in 2011-12. Conversely, urban poverty, though lower in absolute terms, has reduced at a slower pace (from 31.8% to 13.7% in the same period) due to informal employment, rising living costs, and inadequate social infrastructure. The Multidimensional Poverty Index (MPI) by UNDP and OPHI (2021) further corroborates this trend, highlighting deprivations in health, education, and living standards.
Critically, while poverty estimates indicate progress, challenges persist. Methodological discrepancies (e.g., consumption vs. income-based measures), underreporting of urban poverty, and regional disparities (e.g., Bihar vs. Kerala) complicate the narrative. The COVID-19 pandemic also reversed some gains, particularly in urban areas. Forward-looking policies must prioritize inclusive growth, skill development, and robust social protection to sustain poverty reduction.