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Quick recap: Poverty and unemployment on one page

தமிழில் விளக்கம்

Poverty and unemployment · Quick recap · Fact-checked on 26 October 2026 · how we check

Written with AI from the sources listed at the bottom of this page, then fact-checked by a separate AI.

All three parts of Poverty and unemployment condensed for quick revision: poverty measurement, consumption surveys and the poverty line committees from 1962 to Rangarajan, the World Bank line, MPI and Gini; labour force concepts, activity statuses, the PLFS and the types of unemployment; MGNREGA and the VB-G RAM G Act, the labour codes and employment schemes.

Each idea is explained first in Tamil (தமிழ்), ending with the English and Hindi exam terms, followed by the same point in exam English. UPSC Prelims is in English or Hindi, so understand it in Tamil and revise it in English.

வறுமையைச் செலவால் அளக்கிறார்கள், வருமானத்தால் அல்ல — விவசாயியின் வருமானம் விளைச்சலைப் பொறுத்து மாறும், ஆனால் வீட்டுச் செலவு நிலையாக இருக்கும். குறைந்தபட்சச் செலவுக் கோட்டுக்குக் கீழே இருப்பவர்கள் ஏழைகள் — இதுவே வறுமைக் கோடு. எத்தனை பேர் கீழே என்பதை தலைக்கணக்கு சொல்லும், எவ்வளவு ஆழத்தில் என்பதை இடைவெளி சொல்லும். 30 நாளா, 365 நாளா என்று கேட்கும் காலத்தைப் பொறுத்துக் கணக்கு மாறும். 2017-18 கணக்கெடுப்பு வெளிவரவில்லை; 2022-23, 2023-24 கணக்கெடுப்புகள் செலவை மட்டும் சொல்கின்றன. (→ English: poverty line · हिन्दी: गरीबी रेखा)

In exam EnglishThe chapter asks how many Indians are poor and how many of those who want work can find it. India measures absolute poverty, against a poverty line of minimum spending per person, and uses consumption rather than income because spending is steadier and easier to report. The headcount ratio gives the share below the line, and the poverty gap its depth. Consumption comes from NSO surveys of monthly per capita consumption expenditure, whose results depend on the recall period: uniform (30 days), mixed (365 days for rarely bought items) or modified mixed (also 7 days for some foods). The 2017-18 survey was withheld, and the Household Consumption Expenditure Surveys of 2022-23 and 2023-24 report spending, not an official poverty ratio.

கோடு வரைந்தவர்கள் வரிசை: 1962 பணிக்குழு, 1979 அலக் (கிராமத்தில் 2,400, நகரத்தில் 2,100 கலோரி), 1993 லக்டாவாலா (மாநிலத்துக்கு ஒரு கோடு), 2009 டெண்டுல்கர் (கலோரியை விட்டு சுகாதாரம், கல்வி சேர்த்தது; 2011-12இல் 21.9 சதவீதம்), 2014 ரங்கராஜன் (29.5 சதவீதம், ஆனால் ஏற்கப்படவில்லை). அதாவது இன்றும் அதிகாரப்பூர்வக் கடைசிக் கணக்கு டெண்டுல்கரின் 21.9 சதவீதமே. (→ English: Tendulkar Expert Group · Rangarajan Expert Group · हिन्दी: तेंदुलकर विशेषज्ञ समूह · रंगराजन विशेषज्ञ समूह)

In exam EnglishOfficial lines evolved through expert committees. The 1962 Working Group fixed a minimum consumption per person; the Alagh Task Force (1979) tied the line to 2,400 calories a day in rural and 2,100 in urban areas; the Lakdawala Expert Group (1993) kept these norms but drew state-specific lines, updated with CPI-AL in villages and CPI-IW in towns. The Tendulkar Expert Group (2009) dropped the calorie anchor, used one urban basket for both areas with health and education included, and gave 37.2 per cent for 2004-05 and 21.9 per cent for 2011-12. The Rangarajan Expert Group (2014) returned to separate rural and urban baskets and found 29.5 per cent for 2011-12, but was not formally adopted, so Tendulkar's 21.9 per cent remains the last official figure.

பணம் மட்டுமல்ல: உலக வங்கிக் கோடு நாளுக்கு 3 டாலர் (2025 முதல்) — அதன்படி இந்தியாவில் தீவிர வறுமை 27.1இலிருந்து 5.3 சதவீதத்துக்கு. பல்பரிமாண வறுமைக் குறியீடு சுகாதாரம், கல்வி, வீடு-மின்சாரம்-கழிப்பறை போன்ற குறைகளைக் கணக்கிடுகிறது — மூன்றில் ஒரு பங்கு குறை இருந்தால் ஏழை; நிதி ஆயோக் கணக்கில் 29.17இலிருந்து 11.28 சதவீதத்துக்கு. ஊரில் நிலம் எல்லாருக்கும் சமமாக இருந்தால் கினி 0 — ஏற்றத்தாழ்வு கூடக் கூட எண் கூடும். (→ English: multidimensional poverty · Gini coefficient · हिन्दी: बहुआयामी गरीबी · गिनी गुणांक)

In exam EnglishOther lenses complete the picture. The World Bank's extreme poverty line has been $3.00 a day at 2021 PPP since June 2025, and on it India's extreme poverty fell from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23. The global Multidimensional Poverty Index of OPHI and UNDP counts multidimensional poverty across health, education and living standards through ten indicators, with a person poor if deprived in a third of them; NITI Aayog's national index uses twelve indicators from NFHS data and estimated a fall from 29.17 per cent in 2013-14 to 11.28 per cent in 2022-23. Inequality is read from the Lorenz curve and the Gini coefficient, where 0 is perfect equality; the World Bank put India's consumption Gini at 25.5 in 2022-23.

வேலை செய்பவர் + வேலை தேடுபவர் = தொழிலாளர் படை. வேலையின்மை விகிதம் அந்தத் தொழிலாளர் படையில் வேலை கிடைக்காதவர்களின் பங்கு — மொத்த மக்கள்தொகையில் அல்ல. ஆண்டைப் பார்த்தால் வழக்கமான நிலை, வாரத்தைப் பார்த்தால் வாராந்திர நிலை, ஒவ்வொரு நாளையும் பார்த்தால் தினசரி நிலை — தினசரியில் விகிதம் அதிகம். 2025 முதல் PLFS ஒவ்வொரு மாதமும் கணக்கு தருகிறது. 2017-18 முதல் 2023-24க்கு வேலையின்மை விகிதம் 6.0இலிருந்து 3.2 சதவீதத்துக்கு, பெண்கள் பங்கேற்பு 23.3இலிருந்து 41.7 சதவீதத்துக்கு. (→ English: unemployment rate · usual status · हिन्दी: बेरोज़गारी दर · सामान्य स्थिति)

In exam EnglishPart 2 turned to work. The labour force is the employed plus the unemployed; the LFPR and WPR are shares of the population, while the unemployment rate is the unemployed as a share of the labour force. Usual status looks at 365 days (principal status by major time, subsidiary status for 30 days or more of work), current weekly status at 7 days with one hour of work enough, and current daily status at person-days, so it usually gives the highest rate. The PLFS, begun in 2017, was redesigned in January 2025 to give monthly and rural quarterly estimates. On usual status for persons aged 15 and above, the LFPR rose from 49.8 to 60.1 per cent between 2017-18 and 2023-24, the unemployment rate fell from 6.0 to 3.2 per cent, and female LFPR rose from 23.3 to 41.7 per cent.

வேலையின்மை வகைகள்: முழுதும் வேலையில்லை; மறைமுக (வயலில் தேவைக்கு மேல் ஆட்கள்); பருவகால (அறுவடைக்கும் விதைப்புக்கும் இடையே); வேலை மாறும் இடைவெளி; திறமை பொருந்தாமை; மந்தநிலையில்; படித்தவர்களிடம். பலர் முழுதும் வேலையில்லாமல் இல்லை, குறைந்த வேலையில் இருக்கிறார்கள். பெரும்பாலோர் அமைப்புசாரா துறையில் — ஒப்பந்தமில்லை, பாதுகாப்பில்லை; அவர்களுக்காக 2021 ஆகஸ்ட் 26இல் இ-ஷ்ரம் இணையதளம். (→ English: disguised unemployment · unorganised sector · हिन्दी: प्रच्छन्न बेरोज़गारी · असंगठित क्षेत्र)

In exam EnglishUnemployment takes several forms: open; disguised, where extra hands on a crowded family farm add almost nothing to output; seasonal, between harvest and sowing; frictional, between jobs; structural, from a lasting mismatch of skills; cyclical, in a downturn; and educated unemployment among graduates. Underemployment is widespread, so the unemployment rate alone understates the problem. Most Indian workers are in the unorganised sector, without written contracts or social security. To reach them, the Ministry of Labour and Employment launched the e-Shram portal on 26 August 2021, which registers unorganised workers aged 16 to 59 and gives each a Universal Account Number linked to Aadhaar.

வேலை உறுதி (2005): ஒவ்வொரு கிராமக் குடும்பத்துக்கும் ஆண்டுக்குக் குறைந்தது 100 நாள் வேலை உரிமை — 15 நாளில் வேலை அல்லது படி, 5 கி.மீ.க்குள், மூன்றில் ஒரு பங்கு பெண்கள், கிராம சபைத் தணிக்கை. 2026 ஜூலை 1 முதல் புதிய ஜி ராம் ஜி சட்டம்: 125 நாள், பயிர்க் காலத்தில் 60 நாள் இடைவெளி, முன்பே நிர்ணயித்த நிதி, 60:40 செலவு. 29 பழைய சட்டங்கள் நான்கு தொழிலாளர் சட்டத் தொகுப்புகளாக (2025 நவம்பர் 21). சேமிப்புக் குழுக்கள், மானியக் கடன், பயிற்சி, புதிய வேலைக்கு ஊக்கம் — மற்ற திட்டங்கள். (→ English: MGNREGA · labour codes · हिन्दी: मनरेगा · श्रम संहिताएँ)

In exam EnglishPart 3 covered policy. MGNREGA (2005, in force 2 February 2006) gave every rural household a legal right to at least 100 days of unskilled wage work on demand: work within 15 days or an unemployment allowance from the state, work within 5 km, at least one-third women, social audit by the Gram Sabha, and the Centre paying all unskilled wages. The VB-G RAM G Act, 2025 replaced it from 1 July 2026 with 125 days, a seasonal pause of up to 60 days, a normative allocation to each state and 60:40 cost sharing (90:10 for north-eastern and Himalayan states). The four labour codes, in force from 21 November 2025, merged 29 laws, while DAY-NRLM, PMEGP, PMKVY and the PM Viksit Bharat Rozgar Yojana promote self-employment, skills and formal hiring.

Poverty and unemployment at a glance
Measure or law	Year	Key figure or feature
Tendulkar Expert Group	2009	21.9% poor in 2011-12 (last official estimate)
Rangarajan Expert Group	2014	29.5% poor in 2011-12; not adopted
World Bank extreme poverty line	$3.00 a day at 2021 PPP (2025)	India 5.3% in 2022-23
National MPI (NITI Aayog)	January 2024 paper	29.17% (2013-14) to 11.28% (2022-23)
PLFS (usual status, 15+)	2017; redesigned 2025	Unemployment rate 3.2%, LFPR 60.1% in 2023-24
MGNREGA	2005; in force 2 February 2006	At least 100 days per rural household on demand
VB-G RAM G Act	2025; in force 1 July 2026	125 days; 60:40 cost sharing; normative allocation
Four labour codes	2019–2020; in force 21 November 2025	29 central laws merged

Exam traps

Calorie norms of 2,400 (rural) and 2,100 (urban) come from the Alagh Task Force (1979); Tendulkar (2009) dropped the calorie anchor.
For 2011-12: Tendulkar 21.9 per cent (official), Rangarajan 29.5 per cent (higher, not adopted). Tendulkar's 37.2 per cent was for 2004-05.
The HCES of 2022-23 and 2023-24 report MPCE, not an official poverty ratio; there is no official poverty estimate after 2011-12.
The global MPI is by OPHI with UNDP (ten indicators); NITI Aayog's national MPI has twelve indicators and uses NFHS data.
Unemployment rate = unemployed ÷ labour force (not population). The CDS rate is usually the highest and the usual status rate the lowest.
Before 2025 the PLFS quarterly estimates covered urban areas only; monthly estimates and rural quarterly estimates began from January 2025.
MGNREGA guaranteed at least 100 days per household; the unemployment allowance was paid by the state. VB-G RAM G gives 125 days and came into force on 1 July 2026, not on assent (21 December 2025).
The Code on Wages is of 2019, the other three codes of 2020; all four came into force on 21 November 2025 and merged 29 laws.

Recap

India measures absolute poverty from consumption (MPCE); headcount ratio = how many, poverty gap = how deep.
Lines: 1962 Working Group → Alagh 1979 (calories) → Lakdawala 1993 (state lines) → Tendulkar 2009 (21.9% in 2011-12, official) → Rangarajan 2014 (29.5%).
World Bank line $3.00 a day (2021 PPP, June 2025): India 5.3 per cent in 2022-23; national MPI 11.28 per cent in 2022-23; consumption Gini 25.5.
Labour force = employed + unemployed; unemployment rate = unemployed ÷ labour force.
Usual status (365 days, ps+ss), CWS (7 days, one hour), CDS (person-days, highest rate); PLFS since 2017, monthly since 2025.
PLFS 2023-24 (usual status, 15+): LFPR 60.1 per cent, unemployment rate 3.2 per cent, female LFPR 41.7 per cent.
Types: open, disguised, seasonal, frictional, structural, cyclical, educated; underemployment widespread; e-Shram (2021) for unorganised workers aged 16 to 59.
MGNREGA (2005): 100 days, 15-day rule, 5 km, one-third women, social audit; VB-G RAM G (in force 1 July 2026): 125 days, 60-day pause, 60:40.
Four labour codes in force from 21 November 2025; schemes DAY-NRLM, PMEGP, PMKVY and PM Viksit Bharat Rozgar Yojana.

Practice questions

Q1. The calorie norms of 2,400 per day in rural areas and 2,100 per day in urban areas for drawing the poverty line were first adopted by

the Alagh Task Force (1979)
the Lakdawala Expert Group (1993)
the Tendulkar Expert Group (2009)
the Rangarajan Expert Group (2014)

Show answer

Answer: A. the Alagh Task Force (1979)

The Alagh Task Force of 1979 tied the line to these calorie norms. Lakdawala kept them but made state-specific lines; Tendulkar dropped the calorie anchor; Rangarajan used calorie, protein and fat norms with separate baskets, so it did not first adopt them either.

Q2. Consider the following statements:
1. India's last official poverty estimate is for 2011-12.
2. The Household Consumption Expenditure Survey 2023-24 gave an official poverty ratio based on a new poverty line.
Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Show answer

Answer: A. 1 only

Statement 1 is correct: the Tendulkar estimate of 21.9 per cent for 2011-12 is the last official figure. Statement 2 is wrong: the HCES reports consumption spending, and no new official poverty line has been adopted. So '2 only', 'Both' and 'Neither' are wrong.

Q3. Which one of the following publishes the global Multidimensional Poverty Index?

The World Bank
The International Monetary Fund
OPHI and UNDP
NITI Aayog

Show answer

Answer: C. OPHI and UNDP

The global MPI is published by the Oxford Poverty and Human Development Initiative with UNDP. The World Bank publishes the international money-based poverty line, the IMF does not publish poverty indices, and NITI Aayog publishes India's national MPI, not the global one.

Q4. In a labour force survey, the unemployment rate is calculated as the number of unemployed persons as a percentage of

the total population
the labour force
the working-age population
the number of employed persons

Show answer

Answer: B. the labour force

The unemployment rate is the unemployed as a share of the labour force, that is, the employed plus the unemployed. Dividing by the total or working-age population gives a different and smaller ratio, and dividing by the employed alone leaves the unemployed out of the base.

Q5. Consider the following statements about the Periodic Labour Force Survey:
1. Under current daily status, activity is recorded for each day of the reference week in half-day units.
2. Since January 2025, the PLFS has published monthly estimates on current weekly status.
Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Show answer

Answer: C. Both 1 and 2

Both statements are correct: CDS records each day in half-day units, giving person-days, and the redesigned PLFS gives monthly CWS estimates from 2025. So '1 only', '2 only' and 'Neither' are wrong.

Q6. When more members of a family work on a farm than it needs, so that withdrawing some of them would not reduce output, the situation is best described as

structural unemployment
disguised unemployment
frictional unemployment
cyclical unemployment

Show answer

Answer: B. disguised unemployment

This is disguised unemployment: the extra workers' marginal product is close to zero though they appear employed. Structural unemployment is a lasting skill mismatch, frictional unemployment a short gap between jobs and cyclical unemployment a result of falling demand in a downturn.

Q7. Consider the following pairs:
1. MGNREGA — at least 100 days of wage employment per rural household in a financial year
2. VB-G RAM G Act, 2025 — 125 days of wage employment per rural household in a financial year
3. VB-G RAM G Act, 2025 — cost sharing of 75:25 between the Centre and most states
Which of the pairs given above are correctly matched?

1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3

Show answer

Answer: A. 1 and 2 only

Pairs 1 and 2 are correct. Pair 3 is wrong: the new Act shares costs 60:40 between the Centre and most states (90:10 for north-eastern and Himalayan states). So '2 and 3 only', '1 and 3 only' and '1, 2 and 3' are wrong.

Q8. The four labour codes that merged 29 central labour laws came into force on

1 April 2021
1 April 2024
21 November 2025
1 July 2026

Show answer

Answer: C. 21 November 2025

Although passed in 2019 and 2020, the codes waited for rules and came into force together on 21 November 2025. 1 April 2021 and 1 April 2024 are not their dates of commencement, and 1 July 2026 is when the VB-G RAM G Act came into force.

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Sources

Planning Commission: reports of the Alagh Task Force (1979) and the Lakdawala (1993), Tendulkar (2009) and Rangarajan (2014) Expert Groups; NITI Aayog: National Multidimensional Poverty Index reports (2021, 2023) and Discussion Paper (January 2024) — https://www.niti.gov.in
National Statistics Office, MoSPI: Household Consumption Expenditure Surveys 2022-23 and 2023-24; Periodic Labour Force Survey, Annual Report 2023-24 and Changes in PLFS from January 2025 — https://www.mospi.gov.in
World Bank: international poverty line of $3.00 a day at 2021 PPP (June 2025); Poverty and Equity Brief, India (2025) — https://www.worldbank.org
UNDP and OPHI: Global Multidimensional Poverty Index reports — https://hdr.undp.org
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005; the VB-G RAM G Act, 2025; the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 — https://www.indiacode.nic.in
Press Information Bureau: releases on e-Shram (2021, 2024), the labour codes (November 2025), the VB-G RAM G Act (December 2025, May 2026) and the PM Viksit Bharat Rozgar Yojana (2025) — https://pib.gov.in