Question

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

With reference to the historical evolution of poverty estimation committees in India, consider the following statements:

1. The Task Force chaired by Y.K. Alagh (1979) established official poverty lines anchored directly to a minimum daily intake of 2,400 calories in rural areas and 2,100 calories in urban areas.
2. The Task Force chaired by D.T. Lakdawala (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.

Which of the statements given above is/are correct?

  1. A
    1 only
  2. B
    2 only
  3. Both 1 and 2Answer
  4. D
    Neither 1 nor 2

Answer

Both statement 1 and statement 2 are correct.
Both statements are factually correct. The Y.K. Alagh Committee (1979) established the 2,400 kcal (rural) and 2,100 kcal (urban) daily minimum thresholds. Subsequently, the Lakdawala Committee (1993) decentralized poverty line construction to the state level and adopted CPI-AL for rural price updates and CPI-IW for urban price updates.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the Y.K. Alagh Task Force (1979).
Statement 1 is correct.
The Y.K. Alagh Task Force constituted by the Planning Commission in 1979 introduced nutritional requirements as the basis for the poverty line, setting per capita daily calorie requirements at 2,400 kcal for rural areas and 2,100 kcal for urban areas.
2
Evaluate Statement 2 regarding the D.T. Lakdawala Committee (1993).
Statement 2 is correct.
The Lakdawala Committee retained the Alagh Committee's calorie norms but recommended constructing state-specific poverty lines updated for inflation using CPI-AL (rural) and CPI-IW (urban).

Key Concept

Methodological differences between official poverty estimation expert groups in India (Y.K. Alagh and Lakdawala Committees).
Estimated Time:1m 0s
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