Poverty Decline in India after 2011–12 | Economic and Political Weekly


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Key Findings on Poverty Decline in India

This article examines the debate surrounding India's poverty trends after 2011-12, a period marked by the absence of official poverty estimates. Analyzing existing consumption-based poverty estimates, the authors suggest a likely slowing of poverty reduction post-2011-12.

Methodological Challenges

The analysis faces significant challenges related to the comparability of consumption data over time and space, and the choice of poverty lines and price deflators. These issues complicate a precise assessment of poverty decline.

Analysis of Indicators

The study explores various indicators beyond consumption-based poverty, including aggregate income, wages, earnings, and employment. These indicators are used to build a more comprehensive understanding of poverty trends.

Call for Action

Despite the methodological difficulties, the authors express concerns about the pace of poverty reduction and call for a renewed and intensified focus on poverty alleviation efforts.

Recent Poverty Estimates

The authors reference a recent study by Himanshu et al. (2025a) that utilizes the 2022-23 Household Consumption Expenditure Survey (HCES). This study used both the Tendulkar Committee methodology (officially endorsed) and the Rangarajan Committee methodology for comparison. The authors note the tentative nature of these 2022-23 estimates due to substantial comparability issues between surveys.

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The absence of official poverty estimates after 2011–12 has led to a new debate about the recent evolution of poverty in India. Reviewing the existing estimates of consumption-based poverty after 2011–12, it is argued that a slowing of poverty reduction after 2011–12 is most likely. A variety of complementary indicators of poverty in India are assembled and probed, focusing on trends in aggregate income, as well as wages, earnings, and employment. Given the absence of a clear resolution to the vexed issues of non-comparability of consumption over time and space, choice of poverty lines and price deflators, a precise assessment of poverty decline remains pending. However, there are sufficient grounds for concern, and a doubling-down on poverty reduction efforts is clearly warranted.

 

The authors gratefully acknowledge the comments and suggestions from Mahendra Dev and thank Oxford Policy Management for their support with the Data and Evidence to End Extreme Poverty project. 

 

In an earlier paper, Himanshu et al (2025a) present poverty estimates using the recently released Household Consumption Expenditure Survey (HCES) of 2022–23. These estimates are based on the officially endorsed methodology suggested by the Tendulkar Committee which underpins estimates for 2011–12. For comparative purposes, Himanshu et al (2025a) also present estimates based on the Rangarajan Committee methodology, proposed in 2014, but never formally accepted by the government. While Himanshu et al’s (2025a) estimates are the first from the 2022–23 survey to be based on an officially endorsed methodology, the study also emphasises that they are tentative at best, given serious comparability issues between the 2022 and 2023 survey and earlier consumption surveys of the National Sample Survey Office (NSSO). 

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