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The estimation of poverty in India has been a central concern of economic planning and policymaking since independence. Over the decades, various methodologies and approaches have been employed to assess the extent and nature of poverty in the country. These methodologies have evolved over time in response to changing socio-economic conditions, academic debates, and administrative needs. The estimation of poverty not only involves determining the number of people living below a defined poverty line but also understanding the depth, severity, and multidimensional aspects of poverty. The major factors considered in these approaches can be broadly categorized under consumption expenditure, calorie intake, price indices, and more recently, multidimensional indicators. 1. Consumption Expenditure as the Primary Indicator Historically, consumption expenditure has been the cornerstone of poverty estimation in India. The rationale is that consumption is a better indicator of welfare than income, especially in a country where the informal sector predominates, and reliable income data is difficult to obtain. The National Sample Survey Office (NSSO), now part of the National Statistical Office (NSO), has been conducting household consumer expenditure surveys at regular intervals since the 1950s. These surveys provide data on household consumption, which is then used to estimate the proportion of the population living below the poverty line. In the early approaches, a poverty line was drawn based on the minimum consumption expenditure required to meet a certain calorie intake – 2,400 calories per person per day in rural areas and 2,100 calories in urban areas. The expenditure corresponding to this calorie intake was calculated and updated using price indices to determine the poverty line. 2. Calorie Norms and the 1979 Task Force Approach One of the most influential early approaches was developed by the Task Force on Projections of Minimum Needs and Effective Consumption Demand in 1979, under the Planning Commission. It defined the poverty line based on the expenditure needed to obtain a normative minimum calorie intake of 2,400 kcal/day for rural areas and 2,100 kcal/day for urban areas. The rationale was that rural populations typically engage in more physical labor and hence require a higher ________ ___ ___ _____ ____.
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