India's porverty reduced from 269 million to 172 million : World Bank

[Abingdonboy]

India poverty figures varies with method. As of now on World Bank site, based on the Uniform Reference Period (URP) consumption method, India’s poverty rate for 2011/12 is reported as 21.2%. However by comparison, using the Modified Mixed Reference Period (MMRP) consumption method, then it is expected at 12.4% for India.

Going forward, The MMRP will set baseline for India and global poverty estimates.

A very informative post, much appreciated.

 

[mpk1988]

India poverty figures varies with method. As of now on World Bank site, based on the Uniform Reference Period (URP) consumption method, India’s poverty rate for 2011/12 is reported as 21.2%. However by comparison, using the Modified Mixed Reference Period (MMRP) consumption method, then it is expected at 12.4% for India.

Going forward, The MMRP will set baseline for India and global poverty estimates.

I don't get one thing in the report. Does it mean that by MMRP our Poverty stood at 12.4% for 2011/12 and is even lesser now?

 

[Great Sachin]

roughly 100 million above poverty line.....give 10 yrs to Modi we will bring it to 10 million

 

[AyanRay]

Also, 1.9$ (120 rupees) is too high for the poverty line in India. For chrissake, I could live on 60-70 rupees per day easily if I eat at home mostly and have no major transportation charges or phone or internet ones.

So, the actual poverty line could be much lesser. Another 10 years of Modi Sarkaar with inclusive growth will show lift our entire country by leaps and bounds. We just don't need Beef drama or some other nonsense.

Actually the poverty line of 1.9$ is terms of PPP, which comes to around 36 rs. The figures given in the article is wrong.

 

[Shotgunner51]

I don't get one thing in the report. Does it mean that by MMRP our Poverty stood at 12.4% for 2011/12 and is even lesser now?

The latest data (standardized to $1.90/day at 2011 PPP) are all for the same period i.e. 2011/12.

- By URP, it is 21.2%.. This is the official method now.

- By MMRP, it is 12.4%. This method is not official yet, but likely will replace URP.

No data for other periods yet.

 

[21 Dec 2012]

I think this further explains on what @Shotgunner51 has already posted. You people could do with a bit more googling.


Meaning URP, MRP, MMRP | The Indian Express
Meaning URP, MRP, MMRP
The World Bank’s new poverty rate estimate of 12.4% does not mean that Indians have suddenly become richer. In fact, it is how you collect data that determines the poverty rate. What are the methods in vogue?

The World Bank has this week released a report saying the proportion of people living in extreme poverty has fallen to single digits in 2015: 9.6 per cent, down from 12.8 per cent in 2012. This is a first since the Bank started compiling such data in 1990. The other main takeaway was the claim that India has been overestimating its poverty rate. Far from the 21.9 per cent (for 2011-12) calculated by the Suresh Tendulkar Committee, or the even higher 29.5 per cent pegged by the Rangarajan Committee, the World Bank’s estimate is just 12.4 per cent. But more than any real change in the condition of the poor, the differences in poverty rates for the same year only underlines the importance of the way in which data is collected.

It is important to understand that a poverty line is essentially a monetary value. The idea is to collect data on people’s consumption expenditure, and to ascertain how many people surveyed fall below that poverty line. In India, there were two main ways of collecting data: Uniform Reference Period (URP) and Mixed Reference Period (MRP). Up until 1993-94, the poverty line was based on URP data. This involved asking people about their consumption expenditure across a 30-day recall period. In other words, the information was based on the recall of consumption expenditure over the last month alone.


Since 1999-2000, however, data are being collected according to MRP. Under this method, data on five less-frequently used items are collected over a one-year period, while sticking to the 30-day recall for the rest of the items. The low-frequency items include expenditure on health, education, clothing, durables etc. Currently, all poverty line data are compiled using the MRP method. These include the most recent estimates by the Suresh Tendulkar and Rangarajan Committees.

The World Bank’s 12.4 per cent poverty rate estimate for 2011-12 does not mean that people have become richer overnight. Rather, the Bank has used a new method for collecting data, called the modified mixed reference period, or MMRP.

In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected. Also, for some low-frequency items, instead of a 30-day recall, a 1-year recall is collected. This is believed to provide a more accurate reflection of consumption expenditures.

When such data was collected, consumption expenditures for people in both urban and rural areas went up by 10 per cent to 12 per cent.

This happened essentially because people could better recall their food expenditure over a shorter, 7-day period than what they might have done over the longer 30-day period. The higher expenditures, combined with the high population density around the poverty line, essentially meant that the poverty rate for India (for 2011-12) came down sharply.

Interestingly, the MMRP method was first used in 2009-10, alongside MRP.

 

[Shotgunner51]

I think this further explains on what @Shotgunner51 has already posted. You people could do with a bit more googling.


Meaning URP, MRP, MMRP | The Indian Express
Meaning URP, MRP, MMRP
The World Bank’s new poverty rate estimate of 12.4% does not mean that Indians have suddenly become richer. In fact, it is how you collect data that determines the poverty rate. What are the methods in vogue?

The World Bank has this week released a report saying the proportion of people living in extreme poverty has fallen to single digits in 2015: 9.6 per cent, down from 12.8 per cent in 2012. This is a first since the Bank started compiling such data in 1990. The other main takeaway was the claim that India has been overestimating its poverty rate. Far from the 21.9 per cent (for 2011-12) calculated by the Suresh Tendulkar Committee, or the even higher 29.5 per cent pegged by the Rangarajan Committee, the World Bank’s estimate is just 12.4 per cent. But more than any real change in the condition of the poor, the differences in poverty rates for the same year only underlines the importance of the way in which data is collected.

It is important to understand that a poverty line is essentially a monetary value. The idea is to collect data on people’s consumption expenditure, and to ascertain how many people surveyed fall below that poverty line. In India, there were two main ways of collecting data: Uniform Reference Period (URP) and Mixed Reference Period (MRP). Up until 1993-94, the poverty line was based on URP data. This involved asking people about their consumption expenditure across a 30-day recall period. In other words, the information was based on the recall of consumption expenditure over the last month alone.


Since 1999-2000, however, data are being collected according to MRP. Under this method, data on five less-frequently used items are collected over a one-year period, while sticking to the 30-day recall for the rest of the items. The low-frequency items include expenditure on health, education, clothing, durables etc. Currently, all poverty line data are compiled using the MRP method. These include the most recent estimates by the Suresh Tendulkar and Rangarajan Committees.

The World Bank’s 12.4 per cent poverty rate estimate for 2011-12 does not mean that people have become richer overnight. Rather, the Bank has used a new method for collecting data, called the modified mixed reference period, or MMRP.

In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected. Also, for some low-frequency items, instead of a 30-day recall, a 1-year recall is collected. This is believed to provide a more accurate reflection of consumption expenditures.

When such data was collected, consumption expenditures for people in both urban and rural areas went up by 10 per cent to 12 per cent.

This happened essentially because people could better recall their food expenditure over a shorter, 7-day period than what they might have done over the longer 30-day period. The higher expenditures, combined with the high population density around the poverty line, essentially meant that the poverty rate for India (for 2011-12) came down sharply.

Interestingly, the MMRP method was first used in 2009-10, alongside MRP.

That's correct.

This is all about using two different methods (URP vs MMRP), reaching two different data (21.2% vs 12.4%), for the same timeframe (2011/12).

 

[Trisonics]

Just in : Mr Riaz Haq was found sulking

 

[ito]

@RiazHaq I hope you wouldn't write anymore posts on India not doing enough to eradicate poverty.

 

[Skull and Bones]

Also, 1.9$ (120 rupees) is too high for the poverty line in India. For chrissake, I could live on 60-70 rupees per day easily if I eat at home mostly and have no major transportation charges or phone or internet ones.

So, the actual poverty line could be much lesser. Another 10 years of Modi Sarkaar with inclusive growth will show lift our entire country by leaps and bounds. We just don't need Beef drama or some other nonsense.

How you compensate for the house, and eating is not the only issue, what about health care? Its easy to talk about it on the internet, rather than living a life on that sum of money.

I believe poverty level should be measured on the lines of access to proper nutrition, healthcare and education, not on the lines of monetary figures.

 

[Dungeness]

Also, 1.9$ (120 rupees) is too high for the poverty line in India. For chrissake, I could live on 60-70 rupees per day easily if I eat at home mostly and have no major transportation charges or phone or internet ones.

So, the actual poverty line could be much lesser. Another 10 years of Modi Sarkaar with inclusive growth will show lift our entire country by leaps and bounds. We just don't need Beef drama or some other nonsense.

Where did you get this idea? Indian's official poverty line since 2011 was Rs 32 for urban and Rs 26 for rural. A rich kid total out of touch with ground reality in India?

 

[manojb]

These figures are wrong. @RiazHaq will come up with correct figures. .

 

[PatriotLover]

The latest data (standardized to $1.90/day at 2011 PPP) are all for the same period i.e. 2011/12.

- By URP, it is 21.2%.. This is the official method now.

- By MMRP, it is 12.4%. This method is not official yet, but likely will replace URP.

No data for other periods yet.

So nothing has changed, India is still the shitty piss poor slum filled country? As i thought. Carry on the mental masturbation.

 

[Mike_Brando]

So nothing has changed, India is still the shitty piss poor slum filled country? As i thought. Carry on the mental masturbation.

Lol,so says a person whose country has a lower HDI score than that of India and lags behind us in literally every dept. from Per capita income to education!!

 

[Providence]

172 million.

Well it's just off by 8 times the population of australia