GOVERNMENT OF INDIA

PRESS INFORMATION BUREAU

*****

POVERTY ESTIMATES FOR 2004-05

New Delhi, March, 2007

The Planning Commission as the Nodal agency in the Government of India for estimation
of poverty has been estimating the number and percentage of poor at national and state levels.
Since, March 1997 it has been using the Expert Group Method (Expert Group on Estimation of
Proportion and Number of Poor) to estimate poverty. According to this method the estimates of
poverty are made from the large sample survey data on household consumer expenditure
conducted by the National Sample Survey Organization (NSSO) of the Ministry of Statistics and
Programme Implementation. Using this methodology the Planning Commission, in the past, has
released poverty estimates for the year 1973-74, 1977-78, 1983, 1987-88 and 1993-94 by the
Government of India, Press Information Bureau on 11th March 1997. Subsequently, the poverty
estimates for 1999-2000 were released by the Government of India, Press Information Bureau on
22nd February 2001. While releasing the estimates of poverty for 1999-2000, it had been noted
that these estimates were not strictly comparable with the estimates for the previous years.
2. The state-wise rural and urban poverty lines for the year 2004-05 are given in Table-1.
These are estimated using the original state-specific poverty lines identified by the Expert Group
and updating them to 2004-05 prices using the Consumer Price Index of Agricultural Labourers
(CPIAL) for rural poverty lines and Consumer Price Index for Industrial Workers (CPIIW) for
urban poverty lines.
3. The NSSO has now released the result of the latest large sample survey data on
household consumer expenditure (NSS 61st Round), covering the period July 2004 to June 2005
[Report No.508 (61/1.0/1)]. From this data, two different consumption distributions for the year
2004-05 have been obtained. The first one from the consumption data collected using 30-day
recall period (also known as reference period) for all the items. The other distribution is obtained
from the consumer expenditure data collected using 365-day recall period for five infrequently
purchased non-food items, namely, clothing, footwear, durable goods, education and institutional
medical expenses and 30-day recall period for the remaining items. These two consumption
distributions have been termed as Uniform Recall Period (URP) consumption distribution and
Mixed Recall Period (MRP) consumption distribution respectively. The Planning Commission, using
the Expert Group methodology has estimated poverty in 2004-05 using both the distributions.
 4. The state specific percentage and number of poor in rural and urban areas estimated
from URP consumption distribution is given in Table-2. Table-3 gives the state specific
percentage and number of poor in rural and urban areas estimated from MRP consumption
distribution.

5. The percentage and number of poor in 2004-05 estimated from URP consumption
distribution of NSS 61st Round of consumer expenditure data are comparable with the poverty
estimates of 1993-94. The percentage and number of poor in 2004-05 estimated from MRP
consumption distribution of NSS 61st Round of consumer expenditure data are roughly (but not
strictly) comparable with the poverty estimates of 1999-2000.

6. The URP-consumption distribution data of the 61st Round yields a poverty ratio of 28.3
percent in the rural areas, 25.7 percent in the urban areas and 27.5 percent for the country as a
whole in 2004-05 (Table 2). The corresponding figures obtained from the MRP-consumption
distribution data of the 61st Round are 21.8 percent in the rural areas, 21.7 percent in the urban
areas and 21.8 percent for the country as a whole. (Table 3)

7. The poverty estimates in 2004-05 based on URP consumption distribution (27.5 percent)
is comparable with the poverty estimates of 1993-94, which was 36 percent. (Table-4) The
poverty estimates in 2004-05 based on MRP consumption (21.8 percent) is roughly (but not
strictly) comparable with the poverty estimates of 1999-2000, which was 26.1 percent. (Table-5)
 Table - 1
State-Specific Poverty Lines in 2004-05
(Rs. per capita per month)

S.No. State/U.T.'s Rural Urban

1 Andhra Pradesh 292.95 542.89

2 Assam 387.64 378.84
3 Bihar 354.36 435.00
4 Chhattisgarh 322.41 560.00
5 Delhi 410.38 612.91
6 Goa 362.25 665.90
7 Gujarat 353.93 541.16
8 Haryana 414.76 504.49
9 Himachal Pradesh 394.28 504.49
10 Jammu & Kashmir 391.26 553.77
11 Jharkhand 366.56 451.24
12 Karnataka 324.17 599.66
13 Kerala 430.12 559.39
14 Madhya Pradesh 327.78 570.15
15 Maharashtra 362.25 665.90
16 Orissa 325.79 528.49
17 Punjab 410.38 466.16
18 Rajasthan 374.57 559.63
19 Tamil Nadu 351.86 547.42
20 Uttar Pradesh 365.84 483.26
21 Uttarakhand 478.02 637.67
22 West Bengal 382.82 449.32
23 Dadra & N. Haveli 362.25 665.90
All-India * 356.30 538.60

* The poverty line (implicit) at all-India level is worked out from

the expenditure class-wise distribution of persons (based on
URP-consumption, that is, consumption data collected from 30 -day
recall period for all items) and the poverty ratio at all-india level.
The poverty ratio at all-India is obtained as the weighted
average of the state-wise poverty ratio.
 Table-2
Number and Percentage of Population below poverty line by states - 2004-05
(Based on URP-Consumption)

Rural Urban Combined

%age of No. of %age of No. of %age of No. of
S.No. States/U.Ts Persons Persons Persons Persons Persons Persons
(Lakhs) (Lakhs) (Lakhs)
1 Andhra Pradesh 11.2 64.70 28.0 61.40 15.8 126.10
2 Arunachal Pradesh 22.3 1.94 3.3 0.09 17.6 2.03
3 Assam 22.3 54.50 3.3 1.28 19.7 55.77
4 Bihar 42.1 336.72 34.6 32.42 41.4 369.15
5 Chhattisgarh 40.8 71.50 41.2 19.47 40.9 90.96
6 Delhi 6.9 0.63 15.2 22.30 14.7 22.93
7 Goa 5.4 0.36 21.3 1.64 13.8 2.01
8 Gujarat 19.1 63.49 13.0 27.19 16.8 90.69
9 Haryana 13.6 21.49 15.1 10.60 14.0 32.10
10 Himachal Pradesh 10.7 6.14 3.4 0.22 10.0 6.36
11 Jammu & Kashmir 4.6 3.66 7.9 2.19 5.4 5.85
12 Jharkhand 46.3 103.19 20.2 13.20 40.3 116.39
13 Karnataka 20.8 75.05 32.6 63.83 25.0 138.89
14 Kerala 13.2 32.43 20.2 17.17 15.0 49.60
15 Madhya Pradesh 36.9 175.65 42.1 74.03 38.3 249.68
16 Maharashtra 29.6 171.13 32.2 146.25 30.7 317.38
17 Manipur 22.3 3.76 3.3 0.20 17.3 3.95
18 Meghalaya 22.3 4.36 3.3 0.16 18.5 4.52
19 Mizoram 22.3 1.02 3.3 0.16 12.6 1.18
20 Nagaland 22.3 3.87 3.3 0.12 19.0 3.99
21 Orissa 46.8 151.75 44.3 26.74 46.4 178.49
22 Punjab 9.1 15.12 7.1 6.50 8.4 21.63
23 Rajasthan 18.7 87.38 32.9 47.51 22.1 134.89
24 Sikkim 22.3 1.12 3.3 0.02 20.1 1.14
25 Tamil Nadu 22.8 76.50 22.2 69.13 22.5 145.62
26 Tripura 22.3 6.18 3.3 0.20 18.9 6.38
27 Uttar Pradesh 33.4 473.00 30.6 117.03 32.8 590.03
28 Uttarakhand 40.8 27.11 36.5 8.85 39.6 35.96
29 West Bengal 28.6 173.22 14.8 35.14 24.7 208.36
30 A & N Islands 22.9 0.60 22.2 0.32 22.6 0.92
31 Chandigarh 7.1 0.08 7.1 0.67 7.1 0.74
32 Dadra & N. Haveli 39.8 0.68 19.1 0.15 33.2 0.84
33 Daman & Diu 5.4 0.07 21.2 0.14 10.5 0.21
34 Lakshadweep 13.3 0.06 20.2 0.06 16.0 0.11
35 Pondicherry 22.9 0.78 22.2 1.59 22.4 2.37
All-India 28.3 2209.24 25.7 807.96 27.5 3017.20

URP consumption = Uniform Recall Period consumption in which the consumer

expenditure data for all the items are collected from 30-day recall period.

Notes:
1. Poverty Ratio of Assam is used for Sikkim, Arunachal Pradesh,Meghalaya,
Mizoram,Manipur,Nagaland and Tripura.
2. Poverty Line of Maharashtra and expenditure distribution of Goa is used to
estimate poverty ratio of Goa.
3. Poverty Ratio of Tamil Nadu is used for Pondicherry and A & N Island.
4. Urban Poverty Ratio of Punjab used for both rural and urban poverty of Chandigarh.
5. Poverty Line of Maharashtra and expenditure distribution of Dadra & Nagar Haveli
is used to estimate poverty ratio of Dadra & Nagar Haveli.
6. Poverty Ratio of Goa is used for Daman & Diu.
7. Poverty Ratio of Kerala is used for Lakshadweep.
 Table-3
Number and Percentage of Population below poverty line by states - 2004-05
(Based on MRP-Consumption)

Rural Urban Combined

%age of No. of %age of No. of %age of No. of
S.No. States/U.Ts Persons Persons Persons Persons Persons Persons
(Lakhs) (Lakhs) (Lakhs)
1 Andhra Pradesh 7.5 43.21 20.7 45.50 11.1 88.71
2 Arunachal Pradesh 17.0 1.47 2.4 0.07 13.4 1.54
3 Assam 17.0 41.46 2.4 0.93 15.0 42.39
4 Bihar 32.9 262.92 28.9 27.09 32.5 290.01
5 Chhattisgarh 31.2 54.72 34.7 16.39 32.0 71.11
6 Delhi 0.1 0.01 10.8 15.83 10.2 15.83
7 Goa 1.9 0.13 20.9 1.62 12.0 1.74
8 Gujarat 13.9 46.25 10.1 21.18 12.5 67.43
9 Haryana 9.2 14.57 11.3 7.99 9.9 22.56
10 Himachal Pradesh 7.2 4.10 2.6 0.17 6.7 4.27
11 Jammu & Kashmir 2.7 2.20 8.5 2.34 4.2 4.54
12 Jharkhand 40.2 89.76 16.3 10.63 34.8 100.39
13 Karnataka 12.0 43.33 27.2 53.28 17.4 96.60
14 Kerala 9.6 23.59 16.4 13.92 11.4 37.51
15 Madhya Pradesh 29.8 141.99 39.3 68.97 32.4 210.97
16 Maharashtra 22.2 128.43 29.0 131.40 25.2 259.83
17 Manipur 17.0 2.86 2.4 0.14 13.2 3.00
18 Meghalaya 17.0 3.32 2.4 0.12 14.1 3.43
19 Mizoram 17.0 0.78 2.4 0.11 9.5 0.89
20 Nagaland 17.0 2.94 2.4 0.09 14.5 3.03
21 Orissa 39.8 129.29 40.3 24.30 39.9 153.59
22 Punjab 5.9 9.78 3.8 3.52 5.2 13.30
23 Rajasthan 14.3 66.69 28.1 40.50 17.5 107.18
24 Sikkim 17.0 0.85 2.4 0.02 15.2 0.87
25 Tamil Nadu 16.9 56.51 18.8 58.59 17.8 115.10
26 Tripura 17.0 4.70 2.4 0.14 14.4 4.85
27 Uttar Pradesh 25.3 357.68 26.3 100.47 25.5 458.15
28 Uttarakhand 31.7 21.11 32.0 7.75 31.8 28.86
29 West Bengal 24.2 146.59 11.2 26.64 20.6 173.23
30 A & N Islands 16.9 0.44 18.8 0.27 17.6 0.71
31 Chandigarh 3.8 0.04 3.8 0.36 3.8 0.40
32 Dadra & N. Haveli 36.0 0.62 19.2 0.16 30.6 0.77
33 Daman & Diu 1.9 0.03 20.8 0.14 8.0 0.16
34 Lakshadweep 9.6 0.04 16.4 0.05 12.3 0.09
35 Pondicherry 16.9 0.58 18.8 1.34 18.2 1.92
All-India 21.8 1702.99 21.7 682.00 21.8 2384.99

MRP consumption = Mixed Recall Period consumption in which the consumer

expenditure data for five non-food items, namely, clothing, footwear, durable goods,
education and institutional medical expenses are collected from 365-day recall
period and the consumption data for the remaining items are collected from
30-day recall period.

Notes: Same as in Table-2.

 Table-4
Comparison of Poverty Estimates Based on Uniform Recall Period

1993-94 2004-05
1 Rural 37.3 28.3
2 Urban 32.4 25.7
3 Total 36.0 27.5

Table-5
Comparison of Poverty Estimates Based on Mixed Recall Period

1999-2000 2004-05
1 Rural 27.1 21.8
2 Urban 23.6 21.7
3 Total 26.1 21.8