Rangarajan Report Estimates the Poverty Line, still 21.9 Percent

BANGALORE: India is on a constant pace of development, many IT sectors are emerging to new heights, several Indian companies have gained their name worldwide, and as a result, the economic growth is increasing.

But hold on, is growth in the economy is the sole objective? It is essential, that all sections of the society must get benefited from it, poverty rate must go down, and each and every one should get better food and a descent standard of living.

C. Rangarajan, Chairman of the Prime Minister's economic advisory council has presented a report on poverty estimation and concern issue under the title ‘Report of the expert group to review the methodology for measurement of poverty.’ The report has been made as per the changed perceptions regarding the minimally acceptable standards of living in the country.

According to the report, on an average state-wise poverty line for 2011-12 -based on Proposed Methodology in rural areas is 972 per capita per month and in urban areas it is 1407 per capita per month.

Based on the Rangarajan methodology poverty ratio and number of poor in 2011-12, on an average 2605 lakh person were categorized under poor in rural areas and around 1024 lakh person were categorized under poor in urban areas.

Although, the Rangarajan committee report differ slightly from the report presented by Suresh Tendulkar. The Rangarajan method predicted around 29.8 percent people were poverty stricken in 2009-10 whereas the ratio reduced to 21.9 percent in 2011-12. According to Tendulkar report, 38.2 percent of people were under poverty in 2009-10 while it was reduced to 29.5 percent in 2011-12.

Since long, various theories have been presented regarding the estimation of poverty, how to measure poverty and measures for its reduction, but still India is counted in the list of poverty stricken nations.

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