The issue of Poverty Line in India

Poverty Line in India is an unresolved issue ever since our planners started using it as a measure to estimate poverty. Many economists and social activists call it the 'Starvation line' as it is based on calorie intake and ignores other basic amenities like health and education. However lets focus ourselves on the recent roe over the poverty line. Every one from media to social activists are pointing finger at govt. for keeping it as low as Rs. 32 per person per day in urban areas and Rs. 26per person per day in rural areas. The matter of the fact however is that these are revised figures adjusted for inflation using CPI for Industrial laborers and CPI for agricultural laborers respectively. Earlier this figure was around Rs. 20 per person per day in urban areas and Rs. 15per person per day in rural areas as revised by Tendulkar Committe in 2004-05. However there was no hue and cry then except for some silent crusaders putting up the fight. The reason for this is that it was stated as Rs. 446.68 per capita per month for rural areas and Rs. 578.80  per capita per month for urban areas, which doesn't look a very small small amount. 

There is a very good article that appeared in Times of India on the same issue by S A Aiyar  entitled "Middle class hypocrisy on the poverty line". This shows how statistical illusions are created and how the middle class satisfies its philanthropic instinct hypocritically.

However, although the recent hue and cry doesn't go with what was happening earlier it definitely isn't uncalled for. The govt. definitely needs to find out a mechanism to estimate poor correctly as on it relies the expenditure of hard earned money of tax payers and also the all round development of nation as 'Inclusive Growth is the Order of the Day'.