Indians are not as poor as they think: Montek

Montek Singh Ahluwalia beleaguered by attacks on the Planning Commission for regarding Rs 32 enough to keep a person above poverty, today suggested that Indians are actually not as poor as they think. His argument was bolstered by the distinction made in the human development report between data on poverty computed using consumption figures provided by the National Sample Survey and data on poverty when computed using the National accounts or data like national per capita income and GDP.

The latter gives a higher per capita income compared to consumption data, Ahluwalia observed citing the report.

While he did not mention it, the poverty line would automatically jump up considerably if poverty was calculated using national accounts.

Rural Development Minister Jairam Ramesh later commented that it may go up to Rs 60.

While the per capita consumption for those below poverty line is only around Rs 960 per month it would be around Rs 5000 per month if the national per capita figures were used.

Ahluwalia said that the national accounts were not used as state wise figures were not available.

Ahluwalia said the report indicated that the emphasis on education in the eleventh Five Year Plan had borne fruit in the impressive enrolment. He said the solution for the poor progress made in health and nutrition indicators lay in following a multi dimensional approach to poverty.

He said that a single programme cannot solve a problem. The people who need help need to be targeted, he said adding that the Twelfth Five Year Plan with its emphasis on health should see better results in the coming years.