2008 · Paper IV · 10 marksFrequently asked

Explain the methods of measuring poverty in India.

In short

Poverty in India is measured through consumption-based poverty lines drawn by expert committees using NSSO household surveys, supplemented by NITI Aayog's Multidimensional Poverty Index covering health, education and living standards. The Lakdawala (1993), Tendulkar (2009) and Rangarajan (2014) committees successively moved the poverty line beyond calorie norms.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Measuring poverty in India is crucial for policy targeting and inclusive growth, with significant declines yet persistent disparities, notably in Andhra Pradesh1 where progress has been uneven.
Institutional Framework
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Expert Committees and Methodologies

Lakdawala (1993), Tendulkar (2009), and Rangarajan (2014) committees refined poverty lines by incorporating regional price variations, nutritional outcomes, and non-food essentials to better reflect living costs.

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Multidimensional Poverty2 Index Adoption

NITI Aayog’s MPI includes health, education, and living standards, reflecting a holistic poverty view beyond income or consumption alone.

Implementation Challenges
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Data and Regional Disparities

NSSO surveys face comparability issues due to differing recall periods and price deflators; urban poverty in Andhra Pradesh sometimes exceeds rural, revealing gaps in measurement and policy reach.

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Welfare Scheme Impact and Lapses

Schemes like MGNREGA and PM Ujjwala Yojana reduce poverty nationally, but Andhra Pradesh faces welfare fund diversion and scheme3 lapses as highlighted by CAG audits, limiting effectiveness.

Refining Measurement
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Composite Indices and State Customization

Combining consumption data with multidimensional indicators and tailoring poverty lines to states like Andhra Pradesh improves accuracy and policy responsiveness.

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Technology and Data Integration

Leveraging digital public infrastructure and data convergence can enhance real-time poverty monitoring and adaptive interventions.

Way Forward
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New Expert Committee and Survey Improvements

Constitute a committee to revise poverty lines reflecting current consumption patterns, inflation, and regional disparities; standardize NSSO survey recall periods and sampling for better comparability.

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Strengthen Welfare Implementation

Address administrative lapses and fund diversion issues in Andhra Pradesh to maximize poverty alleviation program impact.

Conclusion
India’s poverty measurement is advancing towards multidimensional, region-sensitive frameworks that better capture deprivation’s complexity, enabling more effective targeting and improved welfare outcomes.

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Hand-drawn diagram: Methods of Measuring Poverty. Methods of Measuring Poverty. Diagram (tree): Methods of Measuring Poverty; Consumption-based; Calorie norms; Committee poverty lines; Multidimensional; NITI Aayog MPI; Material deprivation
Diagram: Methods of Measuring Poverty

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Inclusive Growth: India and AP schemes49 questions

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2
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2025
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Most tested: Women empowerment and poverty reduction through AP welfare and credit-linked institutions

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