GROUP A - What is Poverty Estimation and write its Importance?

 

In India, the most commonly used method to estimate poverty is through the measurement of income and consumption levels and poverty line. A person is considered poor if his/her income level falls below a minimum level that fails to meet his/her basic needs. This minimum level is known as the ‘poverty line’. When the income or consumption of an individual or the household belongs to fall below minimum level then they are designated to be Below the Poverty Line

The Poverty Line calculation is now carried out by the NITI Aayog through the calculation of the poverty line based on the data collected by the National Sample Survey Office (NSSO) under the National Bureau Of statistics Implementation to calculate the poverty line (MOSPI). The Planning Commission, which was formerly in charge of establishing the poverty line in India, has been replaced by NITI Aayog as a policy think tank.

Importance for Poverty Estimation

• Poverty estimates are significant not only for academic purposes but also for tracking the impact and success of various government policies, particularly social welfare programs aimed at eradicating poverty. 
• The Ministry of Rural Development (in collaboration with the state) conducts the BPL Census to identify poor households.
•  Poverty estimates in the form of poverty lines are used to create poverty elimination plans that are centred on the poor.
•  Poverty assessment paves the path for poverty elimination, which in turn opens the way for a just and equal society, according to the Constitution.