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Since India commenced the process of economic reforms, a major shift has taken place in the country’s poliy-orientation towards poverty alleviation and employment generation—in place of wage employment, the focus has shifted to self-employment – so that ‘gainful employment’ could be created and poverty could be alleviated permanently10.
The Planning Commission used to estimate poverty using data from the large sample surveys on household consumer expenditure carried out by the National Sample Survey Office (NSSO) every five years. It defines poverty line on the basis of monthly per capita consumption expenditure (MPCE).
The methodology for estimation of poverty followed by the Planning Commission has been based on the recommendations made by experts in the field from time to time—the recent estimates based on the recommendations of the Expert Group headed by Prof. Suresh D. Tendulkar which submitted its report in December 2009.
As per this methodology, poverty estimates (NSSO, 68th Round, 2011-12) for the period 2004-05 to 2011-12 are as given below:
(i) Total poverty declined from 37.2 to 21.9 per cent.
(ii) Rural poverty declined from 41.8 to 25.7 per cent.
(iii) Urban poverty declined from 25.7 to 13.7 per cent
Looking at the controversy and confusion related to per day monetary estimates of poverty line criteria, late 2015, the GoI did set up a task force under the vice-chairman of the NITI Aayog (Arvind Panagariya) to suggest a new method for poverty estimates. The report the task force is awaited (March 2017).