Three out of every 10 Indians are poor, says C Rangarajan panel

A panel headed by former Prime Minister's Economic Advisory Council Chairman C. Rangarajan put the number of poor India in 2011-12 at 29.5 per cent of the population, or three out of every 10 people, much higher than the estimate of the Suresh Tendulkar Committee.

A report submitted by Rangarajan to Planning Minister Rao Inderjit Singh said persons spending less than Rs 47 a day in cities should be considered poor. This is much higher than the spending of Rs 33 per day suggested by the Tendulkar Committee.

According to the Rangarajan panel's estimates, the number poor declined from 38.2 per cent in 2009-10 to 29.5 per cent 2011-12.

This goes against the estimates of the poor given by the Tendulkar Committee that put the number of poor 29.8 per cent in 2009-10 and 21.9 per cent in 2011-12.

According to the Rangarajan panel, the number of poor stood at 36.3 crore in 2011-12, down from 45.4 crore in 2009-10. However, the Tendulkar Committee had suggested that the number of poor was 35.4 crore in 2009-10 and 26.9 crore in 2011-12.

The Rangarajan Committee was formed last year to review the Tendulkar Committee's methodology for estimating poverty and clear ambiguity about the number of poor in the country.

The Rangarajan Committee said a person spending less than Rs 1,407 a month (Rs 47 a day) in cities would be considered poor, while the Tendulkar Committee had suggested the figure should be Rs 1,000 a month (Rs 33 a day).

In villages, those spending less than Rs 972 a month (Rs 32 a day) would be considered poor, the Rangarajan Committee said. This is higher than the figure of Rs 816 a month (Rs 27 a day) recommended by the Tendulkar Committee.

In association with Mail Today