Has poverty really dropped to 5% in India?
The HinduSubrahmanyam recently claimed that less than 5% of Indians now live below the poverty line. Mr. Subrahmanyam argued that the average consumption expenditure in the bottom 5% of India’s population, as estimated by the survey, is about the same as the poverty line in India, suggesting that the poverty rate in India is somewhere in the range of 0 to 5%. Surjit Bhalla and Jayati Ghosh discuss the question in a conversation moderated by Prashanth Perumal J. Edited excerpts: The claim is that less than 5% of Indians live below the poverty line. What Surjit is using is the Tendulkar line adjusted for consumer price inflation and the World Bank’s purchasing power poverty line of $2.15 a day, both of which would give you less than 5% extreme poverty or extreme destitution. In Focus podcast |Multidimensional poverty in India: decoding the Niti Aayog report GDP growth is now driven by capital expenditure, largely public capital expenditure, because we really haven’t seen the same revival in private investment, largely because mass consumption demand is stagnant.