Poverty Estimation

Poverty estimation is the statistical process of determining the threshold income or consumption expenditure needed to meet basic human needs, or evaluating multidimensional deprivations to identify vulnerable populations in India.

Under Indian Economy

• It establishes the empirical foundation for targeting welfare entitlement schemes and determining federal fiscal allocations to states.
• Shift from calorie-based monetary lines to multidimensional deprivation indices reflects the evolving definition of socio-economic well-being in Indian governance.
• Methodological debates surrounding survey reliability, consumption baskets, and price indices directly affect the perceived success of national growth strategies.

UPSC frequently frames questions around the structural limitations of traditional consumption expenditure methodologies compared to modern multidimensional poverty metrics. Questions often test the candidate's ability to critically analyze how poverty measurement impacts target efficiency in social sector interventions. Candidates are also expected to evaluate how structural changes in the Indian economy necessitate revised criteria for identifying multi-sectoral deprivations.

• Poverty and hunger: issues and management GS2
• Role of women and women’s organizations, population issues, poverty GS1