What is poverty?
According to the Suresh Tendulkar Report 2009, the concept of poverty is associated with socially perceived deprivation with respect to basic human needs.
What is a poverty line?
• Poverty levels refer to some level of income or expenditure below which one can reasonably argue that someone is poorer than the rest of the society.
• It is a level of income or consumption expenditure that divides the population between the poor and non-poor.
• The poverty line suggested by the Tendulkar Committee was Rs 29 per day per person in urban areas and Rs 22 per day per person in rural areas.
• The purpose behind choosing a poverty line is two-fold.
1. To accurately design policies for the poor
2. To assess the success or failure of government policies over time
Reasons why poverty has gone up
1. India’s GDP growth rate has faltered post demonetization
2. Unprecedented rise in joblessness where 2017-18 period had touched a 45-year high unemployment
3. Fall or stagnation of real wages even before the COVID pandemic
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