Economics India

Wednesday, January 18, 2006

Some Comments on the Recent Poverty Reduction in India

As per the Planning Commission’s official statistics based on 55th round of National Sample Survey, BPL population declined from 36% in 1993 to 26% in 2000, i.e. by about 100 million. However, this number has been a subject of hot debate among economists because the survey methodology that was used for the 55th round of the National Sample Survey was not compatible with that used in earlier quinquennial, 50th round survey. However, it is acknoledged by experts that even if alternative methods were used there was a fall in poverty rate though it could be lower than that shown by the official statistics.


  • Dear Ramesh:

    Indeed the statistical analysis on poverty has picked up in India again. When I worked at IIM, Ahmedabad in the late seventees several professors of IIMA had done a study for FAO on the effect of agricultural growth on poverty, with projections for the year 2000. I can not believe that now we are in 2006. Our study had concluded that poverty in India will continue to decline but would still remain above 25%. Our assumed growth rate for agriculture was about 4%..your earlier write up in the EconomicsBolg talks about much less actual growth rate.

    So something is still missing in India for poor people.

    I hope that the others who are reading the Economics Blog will comment.


    By Anonymous Anonymous, at 1:58 AM  

  • Congratulations Mr. Deshpande on this innovative blog. We look forward to ideas that are being generated here.

    Manmohan Singh

    By Anonymous Manmohan Singh, at 2:40 PM  

  • Mr. Manmohan Singh, thanks. Please do visit the blog from time to time; comment and contribute; and raise issues on which you would want to have a discussion. Ramesh.

    By Blogger Ramesh G. Deshpande, at 4:52 PM  

  • Dear Ramesh:

    Apart from growth and poverty related issues another major issue in which I would like your Blog to focus is the recent news of "Farmer Suicides". What are the causes and consequences of the suicides? Any thoughts?


    By Anonymous Anonymous, at 4:50 AM  

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