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Difficulty: MediumPoverty Estimation, Inequality Metrics, and Inclusive Growth Strategies

With reference to the official methodology of poverty estimation in India, consider the following statements:

1. The C. Rangarajan Committee (2014) proposed poverty lines based on nutritional norms including protein and fat intake in addition to calories, alongside essential non-food expenses.
2. The Suresh Tendulkar Committee (2009) moved away from the uniform calorie anchor and used implicit private expenditure on health and education to determine poverty lines.
3. The National Multidimensional Poverty Index (MPI) published by NITI Aayog relies primarily on the Household Consumer Expenditure Survey conducted by the National Sample Survey Office (NSSO).

Which of the statements given above is/are correct?

  1. 1 and 2 onlyAnswer
  2. B
    1 only
  3. C
    2 and 3 only
  4. D
    1, 2, and 3

Answer

Statements 1 and 2 are correct, while Statement 3 is incorrect.
The statement combination containing 1 and 2 only is correct. The Rangarajan Committee incorporated a comprehensive nutritional basket (calories, proteins, and fats) along with essential non-food components. The Tendulkar Committee abandoned the strict calorie anchor used by the Alagh and Lakdawala committees, adjusting the poverty line to reflect expenditure on health and education. Statement 3 is false because NITI Aayog utilizes National Family Health Survey (NFHS) data for computing the National MPI across health, education, and standard of living dimensions.

Step-by-Step Solution

1
Evaluate Statement 1 regarding C. Rangarajan Committee (2014)
Statement 1 is correct.
The Rangarajan Committee revised the poverty estimation framework by establishing nutritional requirements based on ICMR norms (2090 kcal, 48g protein, and 28g fat per day for rural; 2036 kcal, 50g protein, and 26g fat per day for urban) along with normative non-food expenses.
2
Evaluate Statement 2 regarding Suresh Tendulkar Committee (2009)
Statement 2 is correct.
The Tendulkar Committee shifted away from the traditional anchor of explicit calorie norms (2400 kcal rural / 2100 kcal urban) and used uniform price baskets that incorporated actual private spending on health and education.
3
Evaluate Statement 3 regarding NITI Aayog's National Multidimensional Poverty Index (MPI)
Statement 3 is incorrect.
NITI Aayog's National MPI is derived using the Alkire-Foster methodology based on micro-data from the National Family Health Survey (NFHS), not the NSSO Household Consumer Expenditure Survey.

Key Concept

Methodological differences between Expert Committees (Tendulkar, Rangarajan) and data sources for Multidimensional Poverty Index in India.
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Topics

Poverty Estimation, Inequality Metrics, and Inclusive Growth Strategies