wl-8164-Prices, Poverty Lines, and Poverty in 2022–23

This paper presents initial and partial estimates of poverty from the 2022-23 consumption survey. In the absence of new official poverty lines, the paper updates the official Tendulkar committee poverty lines for 2022-23. It also reports alternative estimates of poverty based on updated Rangarajan committee poverty lines. Preliminary estimates suggest that while poverty has continued to fall post-2011/12, the pace of poverty reduction has slowed irrespective of the choice of poverty line and inflation adjustment. However, as serious comparability issues between the 2022-23 survey and earlier surveys remain unresolved, even this conclusion must remain tentative at best. Given the multiple comparability concerns, as well as pending decisions regarding the choice of price deflators and the normative content of the poverty line, there is a need for a newly established official committee to present recommendations for the best way forward