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Is India winning the war on poverty? | Is India winning the war on poverty? |
(about 2 hours later) | |
Is India winning the battle against poverty? Going by the latest figures, yes. | Is India winning the battle against poverty? Going by the latest figures, yes. |
The number of Indians living in extreme poverty has fallen from 37% to 22% in the past seven years, according to the latest official data from the Planning Commission. | The number of Indians living in extreme poverty has fallen from 37% to 22% in the past seven years, according to the latest official data from the Planning Commission. |
The good news is that poverty in large swathes of dirt-poor northern India - states like Bihar, Madhya Pradesh, Orissa and Uttar Pradesh, which have been considered a drag on India's development - has fallen sharply. | The good news is that poverty in large swathes of dirt-poor northern India - states like Bihar, Madhya Pradesh, Orissa and Uttar Pradesh, which have been considered a drag on India's development - has fallen sharply. |
Today there are more people living in extreme poverty in the economically prosperous western state of Gujarat (16.63%) than in the traditional northern laggard Rajasthan (14.71%). | Today there are more people living in extreme poverty in the economically prosperous western state of Gujarat (16.63%) than in the traditional northern laggard Rajasthan (14.71%). |
In eastern Orissa, which had the highest number of poor in 2004, poverty levels have nearly halved. | In eastern Orissa, which had the highest number of poor in 2004, poverty levels have nearly halved. |
Economists like YK Alagh say the latest data are significant and show a "rapid decline" in poverty. | Economists like YK Alagh say the latest data are significant and show a "rapid decline" in poverty. |
Dr Alagh says this is because of various factors: | Dr Alagh says this is because of various factors: |
But sceptics believe the new data are flawed since they are based on India's contentious definition of the term "poor"- anyone earning fewer than 32 rupees (55 cents, 35 pence) in urban areas and 27 rupees (45 cents, 30 pence) in rural areas is counted as a person living below the poverty line. | |
The four-decade-old "official poverty line"', which has been updated over the years, is essentially based on the minimum calories consumed by a person. | The four-decade-old "official poverty line"', which has been updated over the years, is essentially based on the minimum calories consumed by a person. |
But food consumption patterns have changed, people's aspirations have grown and therefore the definition of extreme poverty has altered. | But food consumption patterns have changed, people's aspirations have grown and therefore the definition of extreme poverty has altered. |
The government expects to announce a new threshold next year, which according to economist C Rangarajan will "re-define poverty". | The government expects to announce a new threshold next year, which according to economist C Rangarajan will "re-define poverty". |
"We definitely need to come up with a new, updated poverty line based on current realities," agrees Dr Alagh. | "We definitely need to come up with a new, updated poverty line based on current realities," agrees Dr Alagh. |
The new data will help the beleaguered Congress Party-led government, which has come under vicious attack from its critics for slow growth, high inflation, a precarious current account deficit, blocked projects and a splurge on social welfare despite falling revenues (a law to provide cheap food to two thirds of the population is the latest scheme). | The new data will help the beleaguered Congress Party-led government, which has come under vicious attack from its critics for slow growth, high inflation, a precarious current account deficit, blocked projects and a splurge on social welfare despite falling revenues (a law to provide cheap food to two thirds of the population is the latest scheme). |
Despite the good tidings, India's war on poverty is far from over. | Despite the good tidings, India's war on poverty is far from over. |
Remember, 270m Indians still live in extreme poverty. That is one in five Indians. | Remember, 270m Indians still live in extreme poverty. That is one in five Indians. |
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