Economy Prelims Question

An expert committee, set up by the erstwhile Planning Commission last year under C Rangarajan, former chairperson of the Prime Minister's Economic Advisory Council, has redefined the poverty line.
According to the report of the Committee, the new poverty line should be Rs. 32 in rural areas and Rs. 47 in urban areas. The earlier poverty line figure was Rs. 27 for rural India and Rs. 33 for urban India.
The Rangarajan Committee estimation is based on an independent large survey of households by the Centre for Monitoring Indian Economy (CMIE). It has also used different methodology wherein a household is considered poor if it is unable to save.
The methods also include certain normative levels of adequate nourishment, clothing, house rent, conveyance, education and also behavioural determination of non-food expenses. It also considered average requirements of calories, protein and fats based on the Indian Council of Medical Research (ICMR) norms differentiated by age and gender.
Based on this methodology, the Rangarajan Committee estimated the number of poor were 19 per cent higher in rural areas and 41 per cent more in urban areas, than what was estimated using the Tendulkar Committee formula.

An expert committee, set up by the erstwhile Planning Commission last year under C Rangarajan, former chairperson of the Prime Minister's Economic Advisory Council, has redefined the poverty line.
According to the report of the Committee, the new poverty line should be Rs. 32 in rural areas and Rs. 47 in urban areas. The earlier poverty line figure was Rs. 27 for rural India and Rs. 33 for urban India.
The Rangarajan Committee estimation is based on an independent large survey of households by the Centre for Monitoring Indian Economy (CMIE). It has also used different methodology wherein a household is considered poor if it is unable to save.
The methods also include certain normative levels of adequate nourishment, clothing, house rent, conveyance, education and also behavioural determination of non-food expenses. It also considered average requirements of calories, protein and fats based on the Indian Council of Medical Research (ICMR) norms differentiated by age and gender.
Based on this methodology, the Rangarajan Committee estimated the number of poor were 19 per cent higher in rural areas and 41 per cent more in urban areas, than what was estimated using the Tendulkar Committee formula.

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