Redefining India's Poverty Threshold: Embracing New Perspectives

  • 16 May 2024

Why is it in the News?

It is important to recognize India’s progress in alleviating poverty based on norms established in the 1970s. However, there is a need to update the poverty threshold to reflect contemporary notions of a ‘decent standard of living’.

Context:

  • The recent release of the Household Consumer Expenditure Survey (HCES) data by the National Sample Survey Office (NSSO) has sparked renewed debates on poverty estimation in India.
  • According to estimates derived from the methodologies proposed by the Tendulkar and Rangarajan Committees, poverty levels have reportedly decreased significantly since 2011-12, with figures standing at approximately 6.3% and 10% respectively for the year 2022-23.

Evolution of Consumption-Based Poverty Measurement in India:

  • India's consumption-based poverty measurement has evolved since its inception in the 1960s.
  • The approach was first introduced by the 1962 Working Group and further refined by the 1979 Task Force.

The 1979 Task Force:

  • The task force defined the poverty line as the per-capita consumption expenditure level that could satisfy the average daily calorie requirement of 2,400 kcal in rural areas and 2,100 kcal in urban areas.
    • This included associated non-food expenditures, and the monetary value of this norm became the foundation for subsequent poverty line revisions.

Tendulkar and Rangarajan Committees:

  • These committees revisited the calorie norms and expenditure levels established by the 1979 Task Force.
    • However, they did not adequately address non-food components.
    • The committees argued that if expenditures on specific necessities meet nutritional requirements, they should also cover other essential non-food needs.

Implications of the estimates:

  • The estimates indicate a notable decrease in poverty since 2011-12.
  • However, some commentators advocate for a reassessment of the poverty line in light of changes in survey methodology.
  • They contend that recent alterations in survey methodology in the Household Consumer Expenditure Survey (HCES) make previous methodologies unsuitable for analyzing HCES data.
  • Surjit S. Bhalla, an economist and former member of the Economic Advisory Council, has provided comprehensive counterarguments to such assertions.
  • Nevertheless, none of these discussions have addressed the suitability of current methodologies for monitoring poverty using consumption data.

Historical Background of Poverty Measurement:

  • Early approaches: Consumption-based poverty measurement was initiated with a Working Group established by the Planning Commission in 1962 and further refined by a task force in 1979.
    • This task force meticulously outlined its rationale for establishing a poverty line specific to India.
  • Definition of poverty line: It was delineated as the per-capita consumption expenditure required to fulfil average daily calorie needs (2,400 Kcal in rural areas, 2,100 Kcal in urban areas) along with associated non-food expenses.
    • This average calorie standard was derived from an analysis of the demographic and activity-based composition of the population during that period.
  • The monetary value assigned to this standard became the foundation for subsequent revisions of poverty lines.
    • However, the fundamental methodology underpinning this calculation was not critically reassessed.

Reevaluating Poverty Measurement Norms in India:

  • The Tendulkar and Rangarajan Committees acknowledged the evolving demographic and activity composition in India, leading them to propose adjustments to calorie norms and expenditure levels for poverty measurement.
    • However, these committees did not adequately reconsider the non-food components of the poverty line.
  • At the core of their argument was the assertion that if spending within an expenditure class is sufficient to meet nutritional requirements, it should also be adequate to cover associated non-food needs.
    • This assumption is questionable in the context of modern India, as the country has undergone significant changes since the 1970s when the Task Force on Poverty was established.

Demographic and Educational Indicators in India Since the 1970s:

Several significant demographic and educational shifts have taken place in India since the 1970s:

  • Life Expectancy: Life expectancy at birth has improved from 49.7 years in 1970 to 69.4 years in 2018, reflecting advancements in healthcare and overall quality of life.
  • Ageing Population: The proportion of individuals aged 60 and above has grown from 6.1% in the 1970s to 10.1% by 2021.
    • This shift highlights the need for policies and programs that address the unique needs of an ageing population.
  • Primary Education: The Gross Enrolment Ratio (GER) in primary education has experienced substantial growth, increasing from 62% in 1971 to universal enrolment today.
    • This progress demonstrates a stronger emphasis on ensuring access to basic education for all children.
  • Higher Education: The Gross Enrolment Ratio for higher education has also seen significant growth, rising from below 6% in the 1970s to approximately 28% in recent years.
    • This development signals a greater focus on providing opportunities for advanced education and skill development.

Implications of Demographic and Educational Changes in India:

  • The demographic and educational shifts observed in India since the 1970s have significant implications for out-of-pocket expenditures on health and education, as revealed by National Sample Survey (NSS) data. Key implications include:

Education Expenditures:

  • The increase in primary and higher education enrolment has led to stiffer competition for aspirational jobs.
  • This competition has driven higher spending on private tuition, leading to 'education poverty' among families with young children.
  • Addressing this issue requires a change in the approach to education, as outlined in the National Education Policy (2020).

Health Expenditures:

  • The rise in life expectancy and an ageing population have led to increased health expenditure needs, especially among the elderly.
  • Changes in household composition and a growing elderly population living independently have further highlighted the need for better healthcare provisions.
  • Political parties, like the ruling party with its Ayushman Bharat promise, recognize the importance of addressing these healthcare needs, indicating a potential shift in policy focus.

Elderly Population and Household Composition:

  • The increase in life expectancy and decline in mortality rates have created a more age-diverse population with a larger elderly population.
  • This ageing population necessitates greater attention to healthcare and financial support for the elderly, an issue that may not be adequately captured by current poverty measurement norms.

Redefining Poverty Norms for a Changing India:

  • Current consumption-based poverty measures capture average population attributes but face limitations when accounting for increased population heterogeneity.
  • As the population structure evolves, using averages to describe poverty becomes problematic.
    • For example: Elderly households may meet nutrition expenditure requirements but struggle with healthcare costs.
  • Households with young children might cover food needs yet face challenges in meeting aspirational education expenses, like private tuition.
  • These examples highlight how households could surpass extreme poverty thresholds yet lack resources for a decent living standard.
    • Consequently, updating poverty norms is essential to accurately capture the realities of diverse household needs.
  • To achieve the Sustainable Development Goal of eradicating poverty in all forms, India must redefine its poverty norms, moving away from outdated standards based on 1970s data.
  • By establishing fresh norms for the Amrit Kaal, India can better address the unique challenges faced by its population and make significant strides towards alleviating poverty.

Conclusion

India has made remarkable progress in alleviating poverty based on existing norms. However, to ensure a decent living standard for all citizens, it is crucial to update poverty measures to reflect current demographic and economic changes. By acknowledging the evolving needs of its population, India can continue making significant strides in poverty reduction and work towards a more inclusive and prosperous future.

India is in Dire need of Police Reforms (LiveMint)

  • 03 Aug 2023

Why in the News?

The outbreak of communal violence in the Delhi region raises concerns over the role of law enforcement; police forces need structural autonomy and revised incentives.

About Police and Policing Framework in India:

Police forces play a crucial role in upholding and enforcing laws, investigating crimes, and providing security to the nation's people. Given India's large population, well-equipped police forces with adequate personnel, weaponry, forensic, communication, and transport support are essential for effective performance.

The existing legal and institutional framework for police matters in India was inherited from the British, but it lacks accountability in establishing a responsible police force. Despite multiple reform proposals acknowledged by the Government of India and the Supreme Court, comprehensive implementation remains elusive. Consequently, India must revise the legal and institutional framework to advance towards smart policing.

Constitutional and Legal Provisions:

  • As per the Constitution of India, 'Police' and 'Public Order' fall under state subjects in the Seventh Schedule, granting each state its own police force.
  • The central government is also permitted to maintain its police forces to assist states in maintaining law and order.
  • The foundational framework for policing in India was established through the Police Act, of 1861, during the pre-independence era.
  • Additionally, several other laws and regulations, such as the Criminal Procedure Code (CrPC), Indian Penal Code (IPC), Evidence Act, and state-specific laws, govern the functioning of the police in India.

Issues and challenges in Police Forces:

  • Colonial Legacy: The current police system in India is still rooted in colonial-era laws, with past misuse of police as a tool to suppress dissent, which sometimes continues in the present government.
  • Shortage of Police Personnel: Despite a sanctioned strength of 181 police per lakh persons in 2016, the actual strength was only 137 police, well below the United Nations' recommended standard of 222 police per lakh persons, leading to overburdened police personnel.
  • Custodial Death: Instances of custodial death due to torture or pressure in police/judicial custody remain a concern, despite the Supreme Court's guidelines against it.
  • Inadequate Infrastructure: Modern policing requires robust communication support, modern weapons, and high mobility, but funds allocated for police infrastructure often face underutilization.
  • Lack of Torture Law: While India has signed the "United Nations Convention Against Torture," a specific domestic law against torture is yet to be enacted.
  • Political Interference: Political interference hampers police officers' ability to perform their duties effectively, with insufficient tenure and posting security for higher-ranking officers.
  • Promotion and Working Conditions: Qualifications and training for police personnel, especially at lower levels, need improvement. Verbal abuse from superiors and inhumane working conditions for lower ranks impact their relationship with the public negatively.

Significance of Police Reforms:

  • Police-Population Ratio: India's low ratio of 120 police per 100,000 people, compared to the global average of 270, results in inadequately equipped and politically oriented police, posing a security challenge for its citizens.
  • Tackling Corruption: A significant rise in vigilance inquiries against police personnel in 2016 and a decrease in corruption from 66% (2014) to 34% (2015) highlight the need for reforms to address corruption within the police force.
  • Adapting to Changing Crime Patterns: Evolving social and technological changes, driven by the internet and social media, have transformed crime, necessitating reforms to effectively combat lawlessness and global terrorism.
  • Ensuring Inclusivity: Underrepresentation of women and marginalized castes can lead to insensitivity towards these groups, highlighting the importance of reforms to promote inclusivity within the police force.
  • Addressing Caste-Based Violence: Reforms are crucial to tackling escalating violence arising from caste conflicts, including recent Dalit uprisings and farmers' issues across the country.

Various Committees for Police Reforms:

  • Gore Committee on Police Training (1971-73): Reviewed police training from constabulary to IPS officers.
  • National Police Commission (1977): Produced eight Reports on various aspects of police administration.
  • Ribeiro Committee (1998): Recommended setting up Police Performance and Accountability Commissions at the state level and a District Complaints Authority, and replacing the Police Act, of 1861.
  • Padmanabhaiah Committee (2000): Studied police force recruitment, training, duties, investigations, and prosecution.
  • Soli Sorabjee Committee (2005).
  • Vohra Committee Report: Exposed the nexus between criminals, politicians, and government officials, suggesting the establishment of an institution to address the issue.

Way Forward for Police Reforms: Seven Supreme Court Directives

  • Curbing Political Control: Ensure state governments do not exert undue influence or pressure on the police.
  • Merit-Based Appointments: Implement a transparent and merit-based process for appointing the Director-General of Police, ensuring a minimum tenure of 2 years.
  • Tenure Stability: Provide a minimum tenure of 2 years to police officers handling operational duties, including district Superintendents of Police and Station House Officers.
  • Separation of Functions: Separate the roles of investigation and law enforcement to enhance efficiency and transparency.
  • Police Establishment Board: Establish a Police Establishment Board to address transfers, postings, promotions, and service-related matters for officers up to the rank of Deputy Superintendent of Police.
  • State and District Police Complaints Authority: Set up independent Police Complaints Authorities at the state and district levels to address serious misconduct complaints against police officers.
  • National Security Commission: Establish a National Security Commission at the union level to facilitate the selection and placement of chiefs of Central Police Organizations with a minimum tenure of 2 years.