New Poverty Line: Rs. 32 Per Day in Villages, Rs. 47 In Cities

The new poverty benchmarks have been calculated by a panel of experts headed by former Reserve Bank of India Governor and top economist C Rangarajan. His report has also found that one of every three Indians is poor. It states that in 2011-12, nearly 363 million people are below the poverty line - which is 100 million more than earlier thought.

The previous government headed by Dr Manmohan Singh was excoriated by the opposition and activists after the Planning Commission told the Supreme Court in 2011 that those with a daily a daily income of Rs. 27 in villages and Rs. 33 in cities should be ineligible for subsidised food and other supplies.

As per Rangarajan panel estimates, a person spending less than Rs 1,407 a month (Rs 47/day) would be considered poor in cities, as against the Tendulkar Committee's suggestion of Rs 1,000 a month (Rs 33/day).

In absolute terms, the number of poor in India stood at 36.3 crore in 2011-12, down from 45.4 crore in 2009-10, as per the Rangarajan panel.



Anyone earning above these levels would have enough funds for "food, education and health", the commission had told the court.

The proposed benchmarks were condemned by poverty experts as unrealistic - especially with India's soaring inflation.