UPSC Exam Comprehensive News Analysis. June 20th, 2024 CNA. Download PDF [Video]

2. Need to ask if decline in inequality is a good thing: Debroy

Syllabus: Issues related to the development and management of the social sector/Services relating to Health, Education, Human Resources

Prelims: Multidimensional Poverty Index (MDPI)

Mains: Significance of Multidimensional Poverty Index (MDPI)

Context​: Bibek Debroy, chairman of the Prime Minister’s Economic Advisory Council (PMEAC), has called for a reassessment of India’s official poverty line. He raised questions about the implications of declining inequality and the adequacy of existing measures of poverty, such as the Tendulkar line and the Multidimensional Poverty Index (MDPI) from Niti Aayog.

Background

• Current Poverty Line: The Tendulkar Committee in 2009 pegged India’s poverty line at ₹33 per day in urban areas and ₹27 per day in rural areas.
• Rangarajan Committee: A 2014 review by the Rangarajan Committee suggested a higher threshold, but its recommendations were never officially adopted.
• MDPI:Niti Aayog’s Multidimensional Poverty Index, based on the National Family Health Survey, is …