12 indicators -

National Multidimensional Poverty Index

Multidimensional Poverty in India

since 2005-06 NITI AAYOG Poverty
24.82 Cr people have escaped poverty
Absolute Poverty severe deprivation of Basic Human needs
In Uttar Pradesh max people
wealth distribution, talks
have escaped poverty
about income inequality Household income lower than the median
Relative Poverty
income
Gini Coefficient: - 0 to 1
0 - perfect equality Subjective Poverty
1 - perfect inequality
Headquarter - Washington D.C
Lorenz Curve
1st done by - Dadabhai Naroji,
MPI gave unofficial poverty line through his
book - Poverty and UnBritish Rule in India

He made the earliest estimation of poverty

Pre Independence
Own account/money in your bank National Planning Committee, 1938
by Subash Chandra Bose
NOSTRO 1st Chairman: J L Nehru
Eg: Bank X has an account with Bank Y in Bank
Y’s home currency
Bombay Plan, 1944
Your account/money in our bank
VOSTRO
IMF (International Made the 1st systematic assessment of
Poverty
Eg: City Banks partners with HDFC Bank based
in India and opens an account with the
Monetary Fund)
Dandekar & Rath Committee Used the data of NSSO (National Sample
denoted currency INR
1971 Survey Office) Under MoSPI

Foreign Exchange Regulation Act, 1973 FERA POVERTY Expenditure based poverty line
replaced by
Foreign Exchange Management Act, 1999 FEMA Nutrition based poverty line
Alagh Committee
Poverty 1979
Rural - 2400 Calories
Urban - 2100 Calories
Decreases of value of domestic currency Estimation
Depreciation
Due to market forces Poverty line based on
Exporters will benefit in case of depreciation
Floating Exchange Rates Lakdawala Committee CPI-IW (Rular), CPI-AW (Urban)
1993
Increase of value of domestic currency Appreciation 1991 - Balance of payment crisis in India State-wise poverty line

it is Official Depreciation Devaluation Foreign currency assets Health and Education should also be taken
Government interference
under Basic Needs
Fixed Exchange Rates
it is Official Appreciation Revaluation Gold reserves
Poverty line based on Purchasing Power Parity:
Currencies - if someone is spending more than 33/day (not
USA, Euro, Yen (Japan), Special Drawing Rights (SDR) Empty of FOREX Reserves poor), not more than 33/day (poor)
Yuan (China) & Pound (Britain)
Uniform Reference Period replaced by
Mixed Reference Period (Health/education)
Reserve Tranche Position: required quota to be Balance of Post Independence
maintained within the IMF
Payment Crisis Tendulkar Committee
Poverty Line (2011-12)
Rural - 816/month

then PM - P V Narasimha Rao 2009

Urban - 1000/month
then Finance Minister - Manmohan Singh
% of people below poverty line Rural - 25.7%
- 21.9% (2011-12)
Urban - 13.7%

Rural - 30.9%
Poverty Ratio - 29.5%
1st - Argentina Urban - 26.4%
Debaters in IMF
4th - Pakistan Proportion of Population BPL
Head count Ratio

Balance of Payment
Calories
3.3% of GDP (currently) Created categories within
Current Account Deficit (CAD) Protein
nutritional requirements
Value of imports > Value of Exports Rangarajan Committee Fat
2014
Twin Deficit = CAD + Fiscal Deficit Also, talked about Modified Mixed Reference
Period