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Monday, January 27, 2025 | 10:01 PM ISTEN Hindi

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Should purchasing power parity of $3.2 be made India's formal poverty line?

Experts have some reservations about the methodology used to arrive at the number, and that the poverty figures under the existing PPP of $1.9 per person per day have been understated

poverty, food, grain
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Indivjal Dhasmana New Delhi
A recent International Monetary Fund (IMF) working paper suggests that $3.2 on purchasing power parity (PPP) basis per person per day could be made an official poverty line since India has almost eliminated extreme poverty at $1.9 PPP.

"The low level of extreme poverty–-around 0.8 per cent in both 2019 (0.76 per cent) and 2020 (0.86 per cent)–-is suggestive of the need for the official poverty line to now be PPP $3.2," said the paper, co-authored by Surjit Bhalla, executive director for India at the Fund, Arvind Virmani, former chief economic advisor and Karan Bhasin, a policy researcher.

The paper

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