India's new rural poverty line: Rs 27 per day
Issue Date:
 2013-7-23

New poverty estimate claims fastest ever decline in poverty during UPA's
regime

The Planning Commission has declared the new poverty line for rural and
urban areas. It is Rs 27 a day for rural areas and Rs 30 a day for urban
areas.

Just a year ago when the Commission suggested a poverty line of Rs 22 a day
for rural areas, there was a national outrage over it. Subsequently,
government scrapped the poverty estimate based on a survey carried out in
2009 <http://www.downtoearth.org.in/content/new-poverty-estimate-scrapped>
[1]. The current estimate is based on survey carried out in 2011-12.

*269 million Indians are poor *

According to the new estimate, some 216.5 million people in rural areas are
poor while 52.8 million in urban areas are poor. This means out of the
country's total population, 269 million people survive on Rs 27-30 a day.

Going by the press note released on Tuesday by the Planning Commission,
poverty level has shown steepest ever fall in recent history. Since
2004-05, coinciding with the UPA's ascent to power, 138 million people have
escaped the poverty trap. In rural areas the dip in poverty is stark: there
were 326 million poor in 2004-05; in 2011-12 the number fell to 216
million—a decline of 110 million.

The political message in the new estimate is hard to miss. “It can be
concluded that the rate of decline in the poverty ratio during the most
recent seven-year period—2004-05 to 2011-12—was about three times of that
experienced in the 11-year period between 1993-94 and 2004-05,” says the
report. The earlier period of comparison coincides with the Opposition
BJP's tenure in government.

*Poorest states*

Chhattisgarh is the poorest state in the country with close to 40 per cent
of its population being below the poverty line.  However, the geography of
poverty remains the same. Seven states – Chhattisgarh, Bihar, Jharkhand,
Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh – account for 61 per
cent of India's total poor. These states traditionally host India's poorest.


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*Source URL:*
http://www.downtoearth.org.in/content/indias-new-rural-poverty-line-rs-27-day



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