Question 11 of 14 · Poverty, Unemployment & Development
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The Suresh Tendulkar Committee, set up in 2005, was related to:

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Answer: Option B — Estimation of poverty

Detailed Solution

The Suresh Tendulkar Expert Group was set up by the Planning Commission in 2005 to review the methodology for estimating poverty in India. It submitted its report in 2009.

About Suresh Tendulkar:

Professor Suresh D. Tendulkar was a well-known economist at the Delhi School of Economics.

He also served as Chairman of the National Statistical Commission and of the Prime Minister's Economic Advisory Council.

Why a new method was needed:

  • The earlier method, based on calorie intake, was criticised for not reflecting changing consumption patterns.
  • Poverty lines were based on old price data and did not include spending on health and education properly.

Main features of the Tendulkar method:

  • It moved away from calorie norms and used a broader basket of goods and services.
  • It included spending on health and education in the poverty line.
  • It used a uniform poverty line basket for rural and urban areas.
  • It recommended using the Mixed Reference Period for consumption data.
  • It adjusted for price differences between states.

Main findings:

  • Poverty in India was estimated at 37.2 per cent of the population in 2004-05, higher than earlier estimates.
  • Using its method, poverty in 2011-12 was estimated at 21.9 per cent.
  • The poverty line for 2011-12 was about Rs 27 per day in rural areas and Rs 33 per day in urban areas.

Criticism:

  • Critics said the poverty line was too low and did not reflect real living costs.
  • This criticism led to the setting up of another expert group to review the method again.

Use of the estimates:

Poverty estimates are used to allocate funds to states and to decide coverage under welfare schemes.

Multidimensional poverty:

In recent years, NITI Aayog has also published a Multidimensional Poverty Index based on health, education and living standards.

Why not the other options?

  • ✗Civil services reform, disinvestment and food security were studied by other bodies.

Quick tip

Remember: Tendulkar Committee (2005, report 2009) = poverty estimation; 37.2 per cent poor in 2004-05.

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Poverty, Unemployment & Development — Preparation

This question tests your understanding of Poverty, Unemployment & Development, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.

This topic covers the problems of the Indian economy and how they are measured: poverty and the poverty line, committees on poverty estimation, types of unemployment, human development indices, and the programmes designed to tackle poverty and unemployment. Questions often ask which committee estimated poverty (such as the Lakdawala, Tendulkar and Rangarajan committees), what disguised and seasonal unemployment mean, and which organisation publishes the Human Development Index (UNDP). Rankings and indices change every year, so check the latest reports for those questions. Practise the poverty, unemployment and development questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.