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On the Choice of Appropriate Consumer Price Indices and Data Sets for Estimating the Incidence of Poverty in India


  • B. S. Minhas

    (Indian Statistical Institute, New Delhi)

  • L. R. Jain

    (Indian Statistical Institute, New Delhi)

  • S. M. Kansal

    (Indian Statistical Institute, New Delhi)

  • M. R. Saluja

    (Indian Statistical Institute, New Delhi)


After reviewing the available data sets and price deflators used by the Planning Commission for estimation of poverty, this paper constructs some new consumer price indices which are considered more appropriate for updating the base year poverty lines. Three major factors, which crucially affect the poverty computation, have been identified and sensitivity analysis has been attempted to show the separate impact of each of these factors on the poverty estimates. Our analysis shows that the official estimates of poverty incidence suffer from many serious shortcomings, which lead to underestimation of the incidence of poverty in the country. Some suggestions for further research have also been made.

Suggested Citation

  • B. S. Minhas & L. R. Jain & S. M. Kansal & M. R. Saluja, 1987. "On the Choice of Appropriate Consumer Price Indices and Data Sets for Estimating the Incidence of Poverty in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 22(1), pages 19-49, January.
  • Handle: RePEc:dse:indecr:v:22:y:1987:i:1:p:19-49

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    Cited by:

    1. Satya PAUL, 1998. "The Performance Of The Integrated Rural Development Program In India: An Assessment," The Developing Economies, Institute of Developing Economies, vol. 36(2), pages 117-131, June.
    2. Raghav Gaiha, 1989. "Are the Chronically Poor Also the Poorest in Rural India?," Development and Change, International Institute of Social Studies, vol. 20(2), pages 295-322, April.
    3. Raghav Gaiha, 1991. "Poverty Alleviation Programmes In Rural India: An Assessment," Development and Change, International Institute of Social Studies, vol. 22(1), pages 117-154, January.
    4. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    5. Basanta K. Pradhan & M.R. Saluja, 1998. "An Assessment of Poverty Studies in India with Special Reference to Economic Reforms," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 1081-1102.
    6. Shatakshee Dhongde, 2004. "Decomposing Spatial Differences in Poverty in India," WIDER Working Paper Series RP2004-53, World Institute for Development Economic Research (UNU-WIDER).
    7. T. Krishna Kumar & Sushanta Mallick & Jayarama Holla, 2009. "Estimating Consumption Deprivation in India Using Survey Data: A State-Level Rural-Urban Analysis Before and During Reform Period," Journal of Development Studies, Taylor & Francis Journals, vol. 45(4), pages 441-470.

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