AN ALTERNATIVE METHODOLOGY TO MONITOR CHRONIC AND TRANSIENT POVERTY IN INDIA

Abstract

The economic growth in India has been impressive in the last few decades, yet it continues to be a home for millions of poor. The poverty measures debate across the developing world has generated more heat than light as there is no consensus on constructing the poverty line. Characterization of poverty and heterogeneity of the poor needs more profound understanding and investigation. This paper attempts to provide an alternative framework to track Chronic and Transient poverty through decile density analysis and the Chronic-Transient Poverty Ratio by applying the Kernel Density function for the National Sample Survey Organisation’s consumer expenditure distribution in 55th, 61st, 66th, and 68th quinquennial rounds. An increase and a stagnant CTP ratio for urban and rural India implies that poverty reduction interventions are less impactful in rural India. A renewed thrust on poverty alleviation programmes is required in Urban India. Other developing and underdeveloped countries can emulate the proposed framework to analyze chronic and transient poverty conditions.