Indian poverty ratio declined by nine percent

Indx TechStyle

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Hello guys, I was surprised to know that there wasn't any thread about this on DFI while in porkies cried for about two weeks on the topic that after increasing the poverty line level in 2014(1.9$ a day) when World Bank had a survey of poverty, Indian poverty had massively reduced to 12.4%
:india::india::india::india::india:
while porkies had again something happened like literacy rate (their poverty level increased to 22%).
:D



India has reduced its poverty rate to
12.4% from the 2011-12 estimate of
21%, according to new data released
by World Bank, which identified
rural electrification as an important
driving factor for everything from
greater rural spending to schooling
for girls.
Against the earlier estimate of 269
million people living below the
poverty line, according to
government data, India now has 172
million people, although the World
Bank revised the line upwards.
The global poverty line is the ability
to live on $1.90 (Rs 123.5) per day,
up from $1.25 (Rs 81). The change
was made to reflect differences in
cost of living across countries based
on 2011 prices–in other words, to
adjust for inflation and other
economic variables. Here is a good
explanation of why the Bank changed
the definition of who is poor.
“The new global poverty line is set at
$1.90 using 2011 prices. Just over 900
million people globally lived under
this line in 2012 (based on the latest
available data), and we project that
in 2015, just over 700 million are
living in extreme poverty,” the
World Bank said.
Sometime this year, the percentage of
global population living below the
poverty line of $1.90 is expected to
fall to single digits for the first time.
:)
That is why Riaz Haq has been berozgar from a month.
:biggrin2::biggrin2::biggrin2::biggrin2::biggrin2:

Anyway,
Indian poverty rate falls to 12.4%, Electricity played big role
 

Indx TechStyle

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good step ,still long way to go but atleast on right track.

but for pakis india will remain poorest and without toilet :biggrin2::biggrin2::biggrin2:
Yup, but I've got a confusion.
I received in notifications that my this thread has been deleted due to violation of rules.
I was asking mods about this but you are still able to reply here.
Was this thread not deleted?
 

Blackwater

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Yup, but I've got a confusion.
I received in notifications that my this thread has been deleted due to violation of rules.
I was asking mods about this but you are still able to reply here.
Was this thread not deleted?

:biggrin2::biggrin2::biggrin2::biggrin2::biggrin2::biggrin2::biggrin2:
 

The enlightened

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No need to get excited. Its just a change of method.

http://indianexpress.com/article/explained/meaning-urp-mrp-mmrp/
Meaning URP, MRP, MMRP

The World Bank’s new poverty rate estimate of 12.4% does not mean that Indians have suddenly become richer. In fact, it is how you collect data that determines the poverty rate. What are the methods in vogue?

The World Bank has this week released a report saying the proportion of people living in extreme poverty has fallen to single digits in 2015: 9.6 per cent, down from 12.8 per cent in 2012. This is a first since the Bank started compiling such data in 1990. The other main takeaway was the claim that India has been overestimating its poverty rate. Far from the 21.9 per cent (for 2011-12) calculated by the Suresh Tendulkar Committee, or the even higher 29.5 per cent pegged by the Rangarajan Committee, the World Bank’s estimate is just 12.4 per cent. But more than any real change in the condition of the poor, the differences in poverty rates for the same year only underlines the importance of the way in which data is collected.

It is important to understand that a poverty line is essentially a monetary value. The idea is to collect data on people’s consumption expenditure, and to ascertain how many people surveyed fall below that poverty line. In India, there were two main ways of collecting data: Uniform Reference Period (URP) and Mixed Reference Period (MRP). Up until 1993-94, the poverty line was based on URP data. This involved asking people about their consumption expenditure across a 30-day recall period. In other words, the information was based on the recall of consumption expenditure over the last month alone.

Since 1999-2000, however, data are being collected according to MRP. Under this method, data on five less-frequently used items are collected over a one-year period, while sticking to the 30-day recall for the rest of the items. The low-frequency items include expenditure on health, education, clothing, durables etc. Currently, all poverty line data are compiled using the MRP method. These include the most recent estimates by the Suresh Tendulkar and Rangarajan Committees.

The World Bank’s 12.4 per cent poverty rate estimate for 2011-12 does not mean that people have become richer overnight. Rather, the Bank has used a new method for collecting data, called the modified mixed reference period, or MMRP.

In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected. Also, for some low-frequency items, instead of a 30-day recall, a 1-year recall is collected. This is believed to provide a more accurate reflection of consumption expenditures.

When such data was collected, consumption expenditures for people in both urban and rural areas went up by 10 per cent to 12 per cent.

This happened essentially because people could better recall their food expenditure over a shorter, 7-day period than what they might have done over the longer 30-day period. The higher expenditures, combined with the high population density around the poverty line, essentially meant that the poverty rate for India (for 2011-12) came down sharply.

Interestingly, the MMRP method was first used in 2009-10, alongside MRP.
 

Indx TechStyle

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No need to get excited. Its just a change of method.

http://indianexpress.com/article/explained/meaning-urp-mrp-mmrp/
Meaning URP, MRP, MMRP

The World Bank’s new poverty rate estimate of 12.4% does not mean that Indians have suddenly become richer. In fact, it is how you collect data that determines the poverty rate. What are the methods in vogue?

The World Bank has this week released a report saying the proportion of people living in extreme poverty has fallen to single digits in 2015: 9.6 per cent, down from 12.8 per cent in 2012. This is a first since the Bank started compiling such data in 1990. The other main takeaway was the claim that India has been overestimating its poverty rate. Far from the 21.9 per cent (for 2011-12) calculated by the Suresh Tendulkar Committee, or the even higher 29.5 per cent pegged by the Rangarajan Committee, the World Bank’s estimate is just 12.4 per cent. But more than any real change in the condition of the poor, the differences in poverty rates for the same year only underlines the importance of the way in which data is collected.

It is important to understand that a poverty line is essentially a monetary value. The idea is to collect data on people’s consumption expenditure, and to ascertain how many people surveyed fall below that poverty line. In India, there were two main ways of collecting data: Uniform Reference Period (URP) and Mixed Reference Period (MRP). Up until 1993-94, the poverty line was based on URP data. This involved asking people about their consumption expenditure across a 30-day recall period. In other words, the information was based on the recall of consumption expenditure over the last month alone.

Since 1999-2000, however, data are being collected according to MRP. Under this method, data on five less-frequently used items are collected over a one-year period, while sticking to the 30-day recall for the rest of the items. The low-frequency items include expenditure on health, education, clothing, durables etc. Currently, all poverty line data are compiled using the MRP method. These include the most recent estimates by the Suresh Tendulkar and Rangarajan Committees.

The World Bank’s 12.4 per cent poverty rate estimate for 2011-12 does not mean that people have become richer overnight. Rather, the Bank has used a new method for collecting data, called the modified mixed reference period, or MMRP.

In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected. Also, for some low-frequency items, instead of a 30-day recall, a 1-year recall is collected. This is believed to provide a more accurate reflection of consumption expenditures.

When such data was collected, consumption expenditures for people in both urban and rural areas went up by 10 per cent to 12 per cent.

This happened essentially because people could better recall their food expenditure over a shorter, 7-day period than what they might have done over the longer 30-day period. The higher expenditures, combined with the high population density around the poverty line, essentially meant that the poverty rate for India (for 2011-12) came down sharply.

Interestingly, the MMRP method was first used in 2009-10, alongside MRP.
Why not get excited, this means that at first they had ignored about cost of living in India and were making us embarrassed against a failed state.
Now, things are okay.
:biggrin2:
 

The enlightened

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Why not get excited, this means that at first they had ignored about cost of living in India and were making us embarrassed against a failed state.
Now, things are okay.
:biggrin2:
There is no reason to feel excited because real poverty hasn't declined to 12.4% from 21%. It is significantly higher than either of the two.
The Rangarajan committee pegged poverty at 30% with the qualifiers of Rs 47 per day in cities and Rs 32 in villages. Seriously? A person earning above this should not be considered poor? Can a person meet even basic needs such as clothing and shelter (even if can feed himself according to the Rangarajan report) in Rs 47. Not to mention education and health-care? Can you imagine living in such conditions?
 

Indx TechStyle

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There is no reason to feel excited because real poverty hasn't declined to 12.4% from 21%. It is significantly higher than either of the two.
The Rangarajan committee pegged poverty at 30% with the qualifiers of Rs 47 per day in cities and Rs 32 in villages. Seriously? A person earning above this should not be considered poor? Can a person meet even basic needs such as clothing and shelter (even if can feed himself according to the Rangarajan report) in Rs 47. Not to mention education and health-care? Can you imagine living in such conditions?
Reason to get excited is that world has came out of one misconception about India. And I didn't said that poverty has vanished from India.
Every country has problems and our country is catching up fast.
Even pakistan had not to start with just 13% literacy and 99% poverty ratio.
So, keep calm and see your country progressing.
Everything will be improved with time.
Don't be so much worried or denial or probably you'll get in depression.
Be happy yaar!
:)
 

The enlightened

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Reason to get excited is that world has came out of one misconception about India. And I didn't said that poverty has vanished from India.
Every country has problems and our country is catching up fast.
Even pakistan had not to start with just 13% literacy and 99% poverty ratio.
So, keep calm and see your country progressing.
Everything will be improved with time.
Don't be so much worried or denial or probably you'll get in depression.
Be happy yaar!
:)
So you think we should feel excited if foreigners no longer think of India as a poor country? Never mind the actual reality that we are still neck deep in it? Very high self-esteem you have there.
BTW
The World Bank has this week released a report saying the proportion of people living in extreme poverty has fallen to single digits in 2015: 9.6 per cent, down from 12.8 per cent in 2012.
Everyone has become richer according to WB not just us.

Funny that I am the one who is supposedly in denial when you didn't even know the meaning of the WB report at all.
 

Indx TechStyle

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Funny that I am the one who is supposedly in denial when you didn't even know the meaning of the WB report at all.
WB= World Bank
So you think we should feel excited if foreigners no longer think of India as a poor country?
Read my previous comments again, I didn't said that.

Everyone has become richer according to WB not just us.
What do you mean by everyone?
Forgot about western neighbour?
:biggrin2::biggrin2:
At what extent?
"How much richer"?
Don't forget about economic speed (rate of increment of GDP per capita).
 
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I_PLAY_BAD

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We are doing good but not as needed.
The rate of growth of population is much higher than the rate in which we are eradicating poverty.
I am happy that lakhs have come out of poverty but still there are crores.
 

Satybharat

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one thing is sure that people are coming out of poverty in a significant rate.....
 

Rowdy

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With only 3 % middle class against a world avg of 14% we are pathetic.
 

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With only 3 % middle class against a world avg of 14% we are pathetic.
Some years ago, same thing was said for internet users in India.
Let's see the move of government.
Government has target to have 600 million internet users by 2020(they'll easily achieve 580 million by 2018).
Probably after 2025, when smart city project will be on ground, we will watch a great improvement in middle class strength.
As told before,
sudden increment in literacy, sudden revolution in internet popularity and recent fall in poverty, we can see a great improvement in middle class population strength also.
But in my views, government's target should be 10K GDP per capita (in PPP) by 2020.
:)
 

Hari Sud

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No need to get excited. Its just a change of method.

http://indianexpress.com/article/explained/meaning-urp-mrp-mmrp/
Meaning URP, MRP, MMRP

The World Bank’s new poverty rate estimate of 12.4% does not mean that Indians have suddenly become richer. In fact, it is how you collect data that determines the poverty rate. What are the methods in vogue?

The World Bank has this week released a report saying the proportion of people living in extreme poverty has fallen to single digits in 2015: 9.6 per cent, down from 12.8 per cent in 2012. This is a first since the Bank started compiling such data in 1990. The other main takeaway was the claim that India has been overestimating its poverty rate. Far from the 21.9 per cent (for 2011-12) calculated by the Suresh Tendulkar Committee, or the even higher 29.5 per cent pegged by the Rangarajan Committee, the World Bank’s estimate is just 12.4 per cent. But more than any real change in the condition of the poor, the differences in poverty rates for the same year only underlines the importance of the way in which data is collected.

It is important to understand that a poverty line is essentially a monetary value. The idea is to collect data on people’s consumption expenditure, and to ascertain how many people surveyed fall below that poverty line. In India, there were two main ways of collecting data: Uniform Reference Period (URP) and Mixed Reference Period (MRP). Up until 1993-94, the poverty line was based on URP data. This involved asking people about their consumption expenditure across a 30-day recall period. In other words, the information was based on the recall of consumption expenditure over the last month alone.

Since 1999-2000, however, data are being collected according to MRP. Under this method, data on five less-frequently used items are collected over a one-year period, while sticking to the 30-day recall for the rest of the items. The low-frequency items include expenditure on health, education, clothing, durables etc. Currently, all poverty line data are compiled using the MRP method. These include the most recent estimates by the Suresh Tendulkar and Rangarajan Committees.

The World Bank’s 12.4 per cent poverty rate estimate for 2011-12 does not mean that people have become richer overnight. Rather, the Bank has used a new method for collecting data, called the modified mixed reference period, or MMRP.

In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected. Also, for some low-frequency items, instead of a 30-day recall, a 1-year recall is collected. This is believed to provide a more accurate reflection of consumption expenditures.

When such data was collected, consumption expenditures for people in both urban and rural areas went up by 10 per cent to 12 per cent.

This happened essentially because people could better recall their food expenditure over a shorter, 7-day period than what they might have done over the longer 30-day period. The higher expenditures, combined with the high population density around the poverty line, essentially meant that the poverty rate for India (for 2011-12) came down sharply.

Interestingly, the MMRP method was first used in 2009-10, alongside MRP.

You are a nay sayer and will not change your eighties views at all. When an independent body like World Bank collects data without being influenced by others, that data is to be believed. India is not the same ad it was in eighties. I belong to a village culture of Himachal Pardesh where four wheeled carriers arrived in 1970 and electricity arrived twenty years later. School by a private philonthropist openef in fifties, it was upgraded to high school in eighties. A 12 bed hospital exists today.

Today, as I visit my village of Pirsaluhi, there are more people supporting cell phones, more houses has TV a very big percentage of children can read and write not only Hindi but also English. People are wearing better clothes and crop yields seem to be higher than ever before.

That is progress.

If a conspiracy theorist questions progress as this forum reader/ poster has done, then he needs to be reeducated.
 

Rowdy

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Some years ago, same thing was said for internet users in India.
Let's see the move of government.
Government has target to have 600 million internet users by 2020(they'll easily achieve 580 million by 2018).
Probably after 2025, when smart city project will be on ground, we will watch a great improvement in middle class strength.
As told before,
sudden increment in literacy, sudden revolution in internet popularity and recent fall in poverty, we can see a great improvement in middle class population strength also.
But in my views, government's target should be 10K GDP per capita (in PPP) by 2020.
:)
:lol:
Have fun............................
 

The enlightened

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If a conspiracy theorist questions progress as this forum reader/ poster has done, then he needs to be reeducated.
:hail:
Your brilliant technical analysis of how the WB report unquestionably showcases a reduction in India's poverty level from 21% in 2011 to about 12.4% in 2014 has left me floored and dumbfounded, sir. My eyes burn from the luminance of your wisdom and the darkness of my ignorance has been dispelled . Please forgive me for my transgression of bringing forth my 80's view (even as I was born in the 90's). My re-education is now complete.
 

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