Himanshu: The World Bank’s poverty estimates have flaws—India should have its own measures of impoverishment

The new measure captures welfare, which is conceptually entirely different from the Indian practice since independence. While it may have relevance at the international level, some of the adjustments are questionable in the Indian context. For example, it excludes expenditure on durables, furniture and medical expenses but includes some items that are provided free to households such as food, textbooks and uniforms. Whether these represent the level of living is a matter of debate but it is not consistent with the way poverty has been measured in India.