The Lakdawala Committee, officially known as the Expert Group on Estimation of Poverty, was established in 1993 under the leadership of Dr. Suresh D. Tendulkar. The committee was tasked with re-evaluating the methods used to estimate poverty in India, with a focus on updating and improving poverty measurement frameworks.
The Lakdawala Committee’s primary contribution was its development of a more nuanced and comprehensive approach to defining poverty. Unlike previous methodologies that primarily relied on income-based measures, the committee introduced a multi-dimensional perspective. It aimed to integrate various indicators, including consumption patterns, to offer a more accurate depiction of poverty.
One of the key advancements of the Lakdawala Committee was its emphasis on using consumption expenditure as the basis for measuring poverty. The committee recommended setting poverty lines based on the cost of a basic basket of goods and services necessary for a minimum standard of living, which was derived from household consumption data. This approach sought to better capture the reality of living conditions and economic hardships faced by the poor.
Additionally, the committee addressed issues related to regional variations in poverty by suggesting that poverty lines should be adjusted to account for differences in cost of living across various states and regions in India. This regional adjustment aimed to provide a more equitable and precise assessment of poverty across the diverse socio-economic landscape of the country.
The Lakdawala Committee’s recommendations have had a significant influence on subsequent poverty assessments and policy formulation in India. Its focus on consumption-based measures and regional disparities has provided a more detailed and practical framework for understanding and addressing poverty. Overall, the committee’s work has been instrumental in shaping India’s approach to poverty measurement and ensuring more targeted and effective poverty alleviation strategies.