Skip to main content

UPA miscalculation? World Bank says, 2011-12 Indian poverty was 12.4%, not 20.1%, blames methodology

By A Representative
A World Bank policy paper, approved by its chief economist Kaushik Basu, has said that India has been over-estimating its poverty levels by adopting an old methodology. The paper says that a major reason why India miscalculated is because it did not include long-term nonfood consumption items in consumer expenditure in its calculation methodology.
Titled “Ending Extreme Poverty and Sharing Prosperity: Progress and Policies”, in a sub-section, “Why poverty in India could be even lower”, the paper suggests, a major “non-food” factor which may have contributed in reducing poverty in India is infrastructure development in remote areas, particularly rural electrification.
As a result, says the paper, which has been authored by Marcio Cruz, James Foster, Bryce Quillin and Philip Schellekens, the actual poverty in India should not be 21.1 per cent, as earlier calculated, but actually 12.4 per cent in 2011-12.
As the reference year for poverty is 2011-12, observers say, it is “safe to assume” that the paper refers to the success achieved by the Rajiv Gandhi Rural Electrification Mission, floated by the previous UPA government, in order to provide subsidized power to the poorer sections of the population across India.
Pointing out that targeted infrastructure development has helped reduce poverty, the paper says, “Rural electrification in India has caused changes in consumption and earnings, with increases in the labor supply of both men and women, and promoted girls’ schooling by reallocating their time to tasks more conducive to school attendance.”
Apart from rural electrification, the paper says, better railroads has helped, too: “Investment in integration and connectedness through railroads in India helped reduce the exposure of agricultural prices and real income to rainfall shocks, and helped diminish the famine and mortality risks associated with recurrent weather shocks.” 
Pointing towards what was wrong in the past methodology in poverty calculation, the paper says, “Poverty measures for India are based on the household expenditure surveys done as part of the National Sample Surveys (NSS). Since NSS began in the 1950s, it has used 30-day recall for consumption of both food and nonfood items to measure expenditures.”
“These so-called uniform reference period (URP) consumption aggregates collected in every consumption survey (except 1999/2000) provide the longest consistent series for measuring poverty in India”, the paper says, adding, even the World Bank used this methodology earlier. Under the UR-based consumption, India’s poverty would be 21.2 percent.
However, the NSS “introduced a new consumption series based on a modified mixed reference period (MMRP) in the 2009/10 survey. The MMRP series (which modified the 30-day recall to a 7-day recall for some food items and to a 1-year recall for low-frequency nonfood consumption items) was recommended as a more accurate reflection of consumption expenditures”, the paper says.
“As a result of the shorter recall period for food items, MMRP-based consumption expenditures in both rural and urban areas are 10–12 percent larger than URP-based aggregates. These higher expenditures, combined with a high population density around the poverty line, translates to a significantly lower poverty rate of 12.4 percent for 2011/12”, the paper underlines.

Comments

TRENDING

Dalit woman student’s death sparks allegations of institutional neglect in Himachal college

By A Representative   A Dalit rights organisation has alleged severe caste- and gender-based institutional violence leading to the death of a 19-year-old Dalit woman student at Government Degree College, Dharamshala, Himachal Pradesh, and has demanded arrests, resignations, and an independent inquiry into the case.

From colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah  Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

From protest to proof: Why civil society must rethink environmental resistance

By Shankar Sharma*  As concerned environmentalists and informed citizens, many of us share deep unease about the way environmental governance in our country is being managed—or mismanaged. Our complaints range across sectors and regions, and most of them are legitimate. Yet a hard question confronts us: are complaints, by themselves, effective? Experience suggests they are not.

Kolkata event marks 100 years since first Communist conference in India

By Harsh Thakor*   A public assembly was held in Kolkata on December 24, 2025, to mark the centenary of the First Communist Conference in India , originally convened in Kanpur from December 26 to 28, 1925. The programme was organised by CPI (ML) New Democracy at Subodh Mallik Square on Lenin Sarani. According to the organisers, around 2,000 people attended the assembly.

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

The architect of Congolese liberation: The life and legacy of Patrice Lumumba

By Harsh Thakor*  Patrice Émery Lumumba remains a central figure in the history of African decolonization, serving as the first Prime Minister of the independent Republic of the Congo. Born on July 2, 1925, Lumumba emerged as a radical anti-colonial leader who sought to unify a nation fractured by decades of Belgian rule. His tenure, however, lasted less than seven months before his dismissal and subsequent assassination on January 17, 1961.

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat*  Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu.  He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Towards long-term destabilization in South America's northern half: Attack on Venezuela

By Taroa Zúñiga, Vijay Prashad   A little after 2am, Venezuela time, on 3 January 2026, in violation of Article 2 of the United Nations Charter, the United States began an attack on several sites in the country, including Caracas, the capital. Residents awoke to loud noises and flashes, as well as large helicopters in the sky. Videos began to appear on social media, but without much context. Confusion and rumor flooded social media.