Severe poverty in rural areas of India: Report

According to a government estimate, 38 per cent Indians live in severe poverty â€" 10 per cent higher than a previous estimate.

The report, by the Planning Commission chaired by Suresh Tendulkar, former chairman of the National Statistical Commission, states four out of 10 people in rural areas in India are poor.

Earlier in 2004-05, the Planning Commission had said that 28.5 per cent of the country's population was poor, based on a survey by the National Sample Survey Organisation (NSSO).

The finding said an income of Rs 560 per month for urban families was enough to purchase 2,100 calories of nutrition and an income of Rs 368 per month was enough to purchase 2,400 calories of nutrition in rural areas.

Later, in 2007 a different version was rendered by the Arun Sengupta committee that said 77 per cent of India's population was living below the poverty line. Says the committee, mostly all of those earned less than Rs 20 per day.

According to the current estimates, the number of poor in India is approximately 297 million. This means the government will have to spend an additional $1.9bn on ensuring food security to the poor.

In the last four years, the Indian government has spent $31.19bn on poverty alleviation schemes.

Interestingly, the latest report does also show that poverty levels have declined from the mid-1990s. Between 1993-94 and 2004-05, the number of rural poor dropped from 50 per cent to 42 per cent and in urban India from 31 per cent to 26 per cent.