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Question

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

In the structural evolution of official poverty estimation in India, evaluate the following statements concerning the methodology shift introduced by the Suresh Tendulkar Committee (2009):

1. The committee shifted away from anchoring poverty lines strictly to minimum calorie consumption requirements.
2. It recommended using a uniform Poverty Line Basket (PLB) derived from urban consumption patterns across both rural and urban areas.
3. It introduced the Modified Mixed Reference Period (MMRP) recall system for NSS household consumption expenditure surveys.

Which of the statements given above are correct?

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

Answer

1 and 2 only
The option stating '1 and 2 only' is correct. The Suresh Tendulkar Committee moved away from fixed calorie-intake norms and adopted a uniform urban consumption basket across rural and urban India. However, it utilized the Mixed Reference Period (MRP), not the Modified Mixed Reference Period (MMRP), which was instituted by the Rangarajan Committee.

Step-by-Step Solution

1
Analyze Statement 1 regarding calorie-based poverty estimation
Statement 1 is correct
Prior to Tendulkar (e.g., Task Force 1979, Lakdawala 1993), poverty lines were anchored to 2400 kcal (rural) and 2100 kcal (urban). Tendulkar decoupled the line from strict calorie norms, incorporating explicit monthly expenditure on health and education.
2
Analyze Statement 2 regarding the Poverty Line Basket (PLB)
Statement 2 is correct
The Tendulkar Committee adopted the urban consumption pattern of the 2004–05 NSS survey as the uniform reference basket (PLB) to evaluate poverty in both rural and urban areas after adjusting for spatial price variations.
3
Analyze Statement 3 regarding the recall period methodology
Statement 3 is incorrect
The Tendulkar Committee shifted from Uniform Reference Period (URP) to Mixed Reference Period (MRP - 365-day recall for 5 non-food items, 30-day for others). The Modified Mixed Reference Period (MMRP - 7-day recall for perishables) was recommended later by the C. Rangarajan Committee (2014).

Key Concept

Methodological differences between Suresh Tendulkar and C. Rangarajan Committees on poverty estimation in India
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Topics

Poverty Estimation, Inequality Metrics, and Inclusive Growth Strategies