An Assessment of Poverty Studies in India with Special Reference to Economic Reforms

Abstract

As it is well-known, the study of poverty is extremely important on moral and philosophical and also, political grounds. Further, evidences are available to show that poverty affects growth adversely. We, therefore, have made an attempt to review some of the important studies on poverty in India. The concept of poverty relates to socially perceived deprivation with respect to basic minimum needs. In the Indian context, poverty is measured in terms of a specified normative poverty line reflecting the minimum living standard of the people. Defining a poverty line is, therefore, the first step in estimating poverty. According to the Expert Group (1993), a poverty line, dividing the poor from the non-poor, is used by putting a price on the minimum required consumption levels of food, clothing, shelter, fuel and health care, etc. In equal practice however, the poverty lines are normative only in terms of calorie requirements of the diet. Since the beginning of sixties a number of studies have been conducted to estimate the incidence of poverty and to find out the determinants of poverty. Different methods have been used to estimate the incidence. All these are, however, based on the use of poverty lines and the distribution of expenditure of households. These lines have been updated by using alternative price index numbers, and, expectedly, it has resulted in different estimates. Even the base year poverty lines, used by various authors, are different. Various measures of poverty to know its severity and depth have also been estimated by the researchers. The relationships between the incidence of poverty and its determinants have been estimated by using different variables and models.