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

Consider the following statements regarding the official evolution of poverty estimation methodologies in India:

1. The Y. K. Alagh Task Force (1979) established poverty lines based on a minimum daily nutritional requirement of 2400 kcal per person in rural areas and 2100 kcal per person in urban areas.
2. The D. T. Lakdawala Committee (1993) recommended updating state-specific poverty lines using the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas.
3. The Lakdawala Committee discontinued the earlier practice of scaling National Sample Survey (NSS) consumption expenditure data to match National Accounts Statistics (NAS) aggregate data.

Which of the statements given above are correct?

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

Answer

All three statements (1, 2, and 3) are correct.
All three statements are historically and methodologically accurate. The Alagh Task Force (1979) fixed the daily caloric consumption norms (2400 kcal rural / 2100 kcal urban). The Lakdawala Committee (1993) introduced state-specific poverty lines updated via CPI-AL and CPI-IW, while simultaneously eliminating the pro-rata adjustment of NSS survey estimates to match National Accounts Statistics (NAS) data.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the Y.K. Alagh Task Force (1979).
Statement 1 is correct.
The 1979 Alagh Task Force formally introduced calorie-based poverty lines of 2400 kcal/day for rural areas and 2100 kcal/day for urban areas based on average body requirements and activity levels.
2
Evaluate Statement 2 regarding the D.T. Lakdawala Committee (1993) inflation indexing.
Statement 2 is correct.
The Lakdawala Committee recommended disaggregated state-specific poverty lines updated for inflation using CPI-AL for rural workers and CPI-IW for urban industrial workers.
3
Evaluate Statement 3 regarding NAS data adjustment.
Statement 3 is correct.
Prior to 1993, NSS survey estimates were pro-rata adjusted upward to match NAS aggregate consumption figures. The Lakdawala Committee ended this adjustment practice, relying directly on unadjusted NSS survey distribution.

Key Concept

Methodological Milestones in Indian Poverty Estimation (Alagh and Lakdawala Committees)
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Topics

Poverty Estimation, Inequality Metrics, and Inclusive Growth Strategies