Poverty β Definition, Measurement & Poverty Line
Absolute vs relative poverty, Tendulkar Committee, Rangarajan Committee, BPL, and India’s poverty estimates.
π What is Poverty?
Poverty is a condition where a person lacks the minimum income, resources, or capabilities needed to meet basic needs like food, clothing, shelter, healthcare, and education. It is not just about money β it is about the inability to live a dignified life.
A daily wage labourer in rural Bihar earning βΉ150/day cannot afford three meals, school fees for children, or medicines when sick. This is absolute poverty β income below the minimum threshold to survive.
π Types of Poverty
| Type | Definition | Example |
|---|---|---|
| Absolute Poverty | Income below a fixed minimum threshold (poverty line) regardless of others’ income | Person earning less than βΉ32/day (rural) β Tendulkar line |
| Relative Poverty | Income significantly below the average income of society β measured by comparison | Bottom 20% of income earners in any country |
| Chronic Poverty | Persistent poverty over long periods β trapped in poverty cycle | Landless agricultural labourers across generations |
| Transient Poverty | Temporary poverty due to shocks β illness, drought, job loss | Farmer losing crop due to flood, falling below poverty line temporarily |
π Poverty Line in India
A poverty line is a minimum income/expenditure threshold below which a person is considered poor. India uses a calorie-based approach β the minimum calories needed per day determine the poverty line.
- Rural poverty line: 2,400 calories/day
- Urban poverty line: 2,100 calories/day
ποΈ Major Poverty Estimation Committees
1. Tendulkar Committee (2009)
- Chaired by Suresh Tendulkar
- Shifted from calorie-based to expenditure-based poverty line
- Poverty line: βΉ27/day (rural) and βΉ33/day (urban) β 2011-12 prices
- Estimated poverty at 21.9% of population (2011-12)
- Included health and education expenditure in poverty measurement
Under Tendulkar line, a person spending less than βΉ27/day in rural areas is BPL. Critics said this was too low β βΉ27/day cannot even buy a basic meal in most parts of India.
2. Rangarajan Committee (2014)
- Chaired by C. Rangarajan
- Revised poverty line upward: βΉ32/day (rural) and βΉ47/day (urban)
- Estimated poverty at 29.5% of population (2011-12) β higher than Tendulkar
- Included food, clothing, shelter, education, health, and transport
- More comprehensive and realistic than Tendulkar
3. Earlier Committees
| Committee | Year | Key Contribution |
|---|---|---|
| Alagh Committee | 1979 | First calorie-based poverty line |
| Lakdawala Committee | 1993 | State-specific poverty lines; used CPI |
| Tendulkar Committee | 2009 | Expenditure-based; 21.9% poor (2011-12) |
| Rangarajan Committee | 2014 | Revised upward; 29.5% poor (2011-12) |
π India’s Poverty Trends
| Year | Poverty % (Tendulkar) | No. of Poor (approx.) |
|---|---|---|
| 1993-94 | 45.3% | ~400 million |
| 2004-05 | 37.2% | ~407 million |
| 2011-12 | 21.9% | ~270 million |
| 2019-21 (MPI) | ~15% | ~200 million |
π·οΈ BPL β Below Poverty Line
BPL (Below Poverty Line) is a government classification used to identify poor households eligible for welfare schemes. BPL families get subsidised food (PDS), free healthcare, housing schemes, and other benefits.
- APL: Above Poverty Line β not eligible for most subsidies
- BPL: Below Poverty Line β eligible for subsidised food, PMAY, etc.
- AAY: Antyodaya Anna Yojana β poorest of the poor; 35 kg grain/month at βΉ2-3/kg
A BPL family in Telangana gets 5 kg rice/month at βΉ1/kg under PDS (Public Distribution System). Without BPL card, they would pay βΉ35-40/kg in the open market β a 35x difference that makes a huge impact on food security.
π Key Terms to Remember
- Poverty Line: Minimum expenditure threshold to meet basic needs
- BPL: Below Poverty Line β eligible for government welfare
- Absolute Poverty: Income below fixed minimum threshold
- Relative Poverty: Income significantly below societal average
- Calorie norm: 2,400 cal/day (rural), 2,100 cal/day (urban)
- Tendulkar line: βΉ27/day rural, βΉ33/day urban (2011-12)
- Rangarajan line: βΉ32/day rural, βΉ47/day urban (2011-12)