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LATEST NEWS UPDATES | Poverty in India is on the rise again -Santosh Mehrotra and Jajati Keshari Parida

Poverty in India is on the rise again -Santosh Mehrotra and Jajati Keshari Parida

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published Published on Aug 4, 2021   modified Modified on Aug 4, 2021

-The Hindu

In the absence of CES data, the Periodic Labour Force Survey shows a rise in the absolute number of the poor

India has not released its Consumption Expenditure Survey (CES) data since 2011-12. Normally a CES is conducted by the National Sample Survey Office (NSO) every five years. But the CES of 2017-18 (already conducted a year late) was not made public by the Government of India. Now, we hear that a new CES is likely to be conducted in 2021-22, the data from which will probably not be available before end-2022.

Meanwhile, we know that the economy has been slowing for nine quarters prior to the outbreak of the novel coronavirus pandemic. Unemployment had reached a 45-year high in 2017-18, as revealed by NSO’s Periodic Labour Force Survey (PLFS).

Sufficient to estimate change

India’s labour force surveys, including the five-yearly Employment-Unemployment Rounds from 1973-4 to 2011-12, have also collected consumption expenditure of households. The PLFS has maintained that tradition. While the PLFS’s questions on consumption expenditure are not as detailed as those of the CES, they are sufficient for us to estimate changes in consumption on a consistent basis across time. It enables any careful researcher to estimate the incidence of poverty (i.e., the share in the total population of those below the poverty line), as well as the total number of persons below poverty. That is exactly what we do in the table.

There is a clear trajectory of the incidence of poverty falling from 1973 to 2012. In fact, since India began collecting data on poverty, the incidence of poverty has always fallen, consistently. It was 54.9% in 1973-4; 44.5% in 1983-84; 36% in 1993-94 and 27.5% in 2004-05. This was in accordance with the Lakdawala poverty line (which was lower than the Tendulkar poverty line), named after a distinguished economist, then a member of the Planning Commission.

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The Hindu, 4 August, 2021, https://www.thehindu.com/opinion/lead/poverty-in-india-is-on-the-rise-again/article35709263.ece?homepage=true


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