The Rangarajan Committee, officially known as the Expert Group on Poverty Estimates, was established in 2012 under the chairmanship of Dr. C. Rangarajan. This committee was tasked with revising the methodologies for estimating poverty in India, building on the foundations laid by previous committees like those led by Lakdawala and Tendulkar.
The Rangarajan Committee’s primary objective was to address the limitations of earlier poverty measurement approaches and provide a more accurate and comprehensive assessment. One of its notable contributions was the revision of the poverty line to reflect a more realistic standard of living. The committee proposed a higher poverty threshold, which included an increase in the per capita expenditure limits, aligning them more closely with the actual cost of living and basic needs.
A significant aspect of the Rangarajan Committee’s recommendations was the integration of multiple dimensions of poverty. The committee recommended considering not just consumption expenditure but also factors such as health, education, and housing quality. This multidimensional approach aimed to offer a more holistic view of poverty and better capture the lived experiences of the poor.
Additionally, the Rangarajan Committee emphasized the importance of regional variations and proposed state-specific poverty lines to account for disparities in cost of living. It also advocated for regular updates to poverty measures to keep pace with inflation and changes in economic conditions.
The committee’s recommendations have had a substantial impact on poverty estimation and policy formulation in India. By providing a revised and more inclusive poverty measure, the Rangarajan Committee has helped to ensure that poverty assessments more accurately reflect current realities, thereby guiding more effective and targeted poverty alleviation strategies. Its work represents a significant step forward in refining poverty measurement and addressing the diverse needs of India’s population.