Skip to main content

New Rangarajan committee report on BPL suggests Gujarat has slipped in rural poverty

By Rajiv Shah 
Prof Bibek Debroy, an economist who is known to have taken a leading role in “authoring” the concept what came to be known as “Gujarat model”, said in his book “Gujarat: Governance for Growth and Development”, released in 2012, that the real growth in Gujarat could be found in rural areas, where poverty reduction has come about as a “trickle-down effect.” Quoting National Sample Survey (NSS) figures, he said, “In rural Gujarat, there has been a very sharp drop in poverty, significantly more than all-India trends. In 2004-05, the below poverty line (BPL) number for rural Gujarat was 9.2 million. That’s still a large number, but is significantly smaller than the 12.9 million in 2004-05.” Based on this, he said, the poverty in Gujarat had gone down during that period by 12.4 per cent, which was one of the highest in India.
It seems, however, that in just about two years of his drastic observation, which Prof Debroy kept repeating at several forums, things appear to be looking a little gloomy for Gujarat. Latest Government of India study report of the Expert Group, headed by former Reserve Bank of India (RBI) governor C Rangarajan, on measurement of poverty, has found that Gujarat has slipped in rural poverty rank. According to the study, in 2009-10, Gujarat’s rural poverty was 9th highest in a group of 20 states, which in 2011-12 became 8th highest. Worse, if in 2009-10, the BPL in rural Gujarat (37 per cent) was below the national average (39.6 per cent), in 2011-12, the BPL in rural Gujarat (31.4 per cent) was higher than the national average (30.9 per cent).
The slip in rural poverty, if the Rangarajan committee report is to be believed, has been made up by a somewhat better performance in urban Gujarat. Thus, in 2009-10, there were 35.6 per cent BPL in urban Gujarat, making the state 11th most poor, in 2011-12, the ranking improved to 12th, with 22.2 per cent poor. However, this improvement has failed to get reflected in the overall ranking of Gujarat. The state continues to remain the 9th most poor state of India with the total BPL of 27.4 per cent in 2011-12. The ranking was the same (ninth most poor state out of 20 major states) in 2009-10, when the total BPL were 36.4 per cent.
The new poverty line, worked out by Rangarajan, fixes the rural poverty line for each state separately. For Gujarat, it has fixed it at Rs 1,103 for rural areas and Rs 1,507 for urban areas per capita per month consumption expenditure. At the all-India level, the Rangarajan committee fixed poverty line at monthly per capita consumption expenditure of Rs. 972 in rural areas and Rs 1407 in urban areas. “This implies”, the report states, that at the all-India level, poverty line is drawn as the “monthly consumption expenditure of Rs 4,860 in rural areas or Rs 7,035 in urban areas for a family of five at 2011-12 prices”, the report says, adding, “This has to be seen in the context of public expenditure that is being incurred in areas like education, health and food security.”
Based on this, the report states, at the all-India level, “the Expert Group (Rangarajan) estimates that the 30.9 per cent of the rural population and 26.4 per cent of the urban population was below the poverty line in 2011-12. The all-India ratio was 29.5 per cent. In rural India, 260.5 million individuals were below poverty and in urban India 102.5 million were under poverty. Totally, 363 million were below poverty in 2011-12.” It adds, “The poverty ratio has declined from 39.6 per cent in 2009-10 to 30.9 per cent in 2011-12 in rural India and from 35.1 per cent to 26.4 per cent in urban India. The decline was thus a uniform 8.7 percentage points over the two years. The all-India poverty ratio fell from 38.2 per cent to 29.5 per cent. Totally, 91.6 million individuals were lifted out of poverty during this period.”
As for absolute numbers in Gujarat, in 2011-12, there were 10.98 million people in rural areas and 5.89 million people in urban areas below poverty line (total 16.88 million BPL). As against this, in 2009-10, there were 12.71 million people in rural areas and 8.87 million in urban areas below poverty line (total 21.58 million BPL).
Considering that poverty line should be “based on certain normative levels of adequate nourishment, clothing, house rent, conveyance and education, and a behaviorally determined level of other non-food expenses”, the report states, adding, “The Expert Group (Rangarajan) computed the average requirements of calories, proteins and fats based on Indian Council for Medical Research (ICMR) norms differentiated by age, gender and activity for all-India rural and urban regions to derive the normative levels of nourishment. Accordingly, the energy requirement works out to 2,155 kcal per person per day in rural areas and 2,090 kcal per person per day in urban areas. The protein and fat requirements have been estimated on the same lines as for energy. These requirements are 48 gms and 28 gms per capita per day, respectively, in rural areas; and 50 gms and 26 gms per capita per day in urban areas.”
The report states, “A food basket that simultaneously meets all the normative requirements of the three nutrients defines the food component of the poverty line basket proposed by the Expert Group (Rangarajan).” Other calculations taken into account include “clothing expenses, rent, conveyance and education expenses, basic non-food expenses of clothing, housing, mobility and education.” All of it together has led to the committee working out the new poverty line – which is “monthly per capita consumption expenditure of Rs 972 in rural areas and Rs.1,407 in urban areas in 2011-12”.
The report also states that the estimations of the poverty line are not just based on the National Sample Survey Organisation (NSSO) data collected by the Government of India’s data collection department, Ministry of Statistics and Programme Implementation. It has simultaneously relied on an independent large survey of households by the Centre for Monitoring Indian Economy (CMIE). It observes, the CMIE results “are remarkably close to those derived using the NSSO data. This provides additional evidence in support of the poverty line derived by the Expert Group (Rangarajan).“
The report further states, “The national rural and urban poverty lines computed as above were used to derive the state-wise poverty lines by using the implicit price derived from the quantity and value of consumption observed in the NSSO’s 68th Round of Consumer Expenditure Survey (2011-12) to estimate state relative to all-India Fisher price indices. Using these and the state-specific distribution of persons by expenditure groups (NSS), state-specific ratios of rural and urban poverty were estimated. State-level poverty ratio was estimated as weighted average of the rural and urban poverty ratios and the national poverty ratio was computed again as the population-weighted average of state-wise poverty ratios.”

Comments

TRENDING

Sengol imbroglio suggests reason why Modi, BJP don't respect modern Indian history

By Vidya Bhushan Rawat*  The new parliament building opened on February 28. It looks it is not the Parliament but part of #Pratinidhisabhas ' started by earstwhile #princelystates in India. The #BJP for long has been acting as if India is a #Kingdom and Modi ji the new #King of India. Even at the coronations of Kings, you find a large number of people, and dignitaries but look at the opening ceremony we have only one face as if he build everything. Is it the dream of a republic.

Cave of Spleen - a feminist perspective: Status of women in early 18th century England

The Cave of Spleen: Aubrey Beardsley's illustration for Pope's “The Rape of the Lock” By Pragya Ranjan  "The Rape of the Lock" by Alexander Pope published in 1712 is a mock-heroic narrative which satirically glorifies trivial incident of cutting of locks of protagonist Belinda. This poem was written in the Augustan Era (1660-1784) which is marked by the period of scientific reason and rationality, whose effect can be seen on the writers of those times. This timeline is particularly important to analyse the episode of the Cave of Spleen.

Abrogation of Art 370: Increasing alienation, relentless repression, simmering conflict

One year after the abrogation by the Central Government of Art. 370 in Kashmir, what is the situation in the Valley. Have the promises of peace, normalcy and development been realised? What is the current status in the Valley? Here is a detailed note by the People’s Union for Civil Liberties , “Jammu & Kashmir: One Year after Abrogation of Art. 370: Increasing Alienation, Relentless Repression, Simmering Conflict”:

Release of dabang neta: Rule of law can't be allowed to be slave to political rhetoric

By Vidya Bhushan Rawat*  When we look to politicians for solutions and politics as the 'final solution' for every evil then we are disappointed most of the time. In politics, we knowingly or unknowingly become part of the propaganda tool of the ruling elite which exists everywhere across different castes. We often provide issues and talk about them in binaries which suit our elites. The minorities among the marginalised who have no political space and representation rarely get heard by these majoritarian parties whose agenda remain power communities. Every political party in today's time is following the 'successful' formula of 'democracy' which is keeping the 'powerful' 'jaatis' with them leaving aside the marginalised one. The BJP started this but yes they cobbled together all other communities too through a diverse narrative.

Discussion on making school education meaningful to vulnerable communities

ActionAid note on workshop to boost National Curriculum Framework operations: *** Leading educationists and activists striving to make education meaningful to vulnerable communities gathered in Delhi to discuss the National Curriculum Framework for School Education (NCFSE). Acting in response to the call of the NCF Steering Committee appointed by the Ministry of Education, Government of India, ActionAid Association had organised the meeting to gather feedback on the draft NCFSE. This is part of ActionAid Association’s commitment to promote inclusive and gender-responsive education. The two-day national workshop titled ‘NCF Perspectives: Seeking Feedback on National Curriculum Framework (NCF)’ on May 30 and 31, 2023, was held at India International Centre, New Delhi. The workshop aimed to ensure a structured approach to gathering feedback from key stakeholders and enhancing their active participation in shaping the response sought by the Government of India. Stakeholders representing e

Why are 17 Indian cos, including Sterlite, blacklisted by Norway bank

By Venkatesh Nayak* Readers may recall the gory incidents that took place at Thoothukudi (Tuticorin) in Tamil Nadu in the southern part of India on 22 May, 2018. Thirteen protesters died on the spot when the police opened fire to disperse an assemblage of thousands of local residents and representatives of civil society groups. They were protesting against the adverse environmental impact of the industrial operations of Sterlite Copper which runs a copper smelter plant in the area. Accusations against the company have ranged from polluting local water resources to plans for expanding the installed capacity of the plant without the necessary environmental clearances. A ground report published in The Wire recently, mentions the decision taken by Norges Bank a few years ago to not invest funds from Norway’s Government Pension Fund Global (GPFG) in Sterlite “due to an unacceptable risk of complicity in current and future severe environmental damage and systematic human rights violations

J&K RTI activist denied opportunity to address audience, bring forward critical issues

Statement by Er. Irfan Banka, Founder of J&K RTI Foundation and convener of the Nalae Ferozpora Bachav Movement, regarding the incident of official misconduct during the My Town My Pride Jan Abhiyan Program and communication to Raj Bhavan: *** Er. Irfan Banka, a prominent RTI Activist and advocate, has come forward to address an incident of misconduct that occurred during the My Town My Pride Jan Abhiyan Program held at Mugam Town Hall in  Budgam. Additionally, Er. Irfan Banka has communicated the matter to Raj Bhavan, seeking appropriate action. During the event, Er. Irfan Banka was denied the opportunity to address the audience and bring forward critical issues concerning the people and services in the community, including waste management, traffic management, and the achievement of sustainable development goals. The incident involved the Additional Registrar Co-operative Kashmir, who not only prevented Er. Irfan Banka from speaking but also subjected him to public humiliation. E

Danger ahead: Smartphones making teens sexually smart, but mentally disturbed

By Harasankar Adhikari  We live in a digitally globalised society. Bombarded consumerism and imitation of foreign cultures and practises reshape our everyday lives. Life choices and lifestyles are the driving forces of modernity at present. People of almost all ages are within this realm and rhythm of consumerism for happiness.

Big challenge for environment movement: How to link with justice, peace movements?

By Bharat Dogra  The biggest hope for resolving life-threatening environmental problems of our planet increasingly rests now not with the world-level political leadership, which has failed miserably in many critical contexts, but instead with those highly committed environmental activists who have many significant achievements to their credit despite working in the middle of many difficulties. Alas, even they too are often grim today instead of being enthused because of the rather overwhelming conditions of world which force environment protection to go two steps backward even when the activists and movements achieve the difficult task of moving one step ahead.

Worship practice of Hindu religion in official functions should be considered appropriate

By NS Venkataraman* The new Indian parliament building was inaugurated with much fanfare, pomp and show by Prime Minister Modi befitting the occasion. While the magnificent building with several technological features was built in just over two years , the style and structure of the building has been acclaimed by millions of people who saw the inaugural programme. Those who saw this programme in person or in visual media could not miss the fact that the installation of Sengol ( Sceptre) was the hall mark of this elegant programme . In India, historically, Sengol is considered to be the symbol of justice and good governance.