Poverty and deprivation in India: Divergence between consumption and asset based estimates (NIAS/SSc/IHD/U/WP/10/2021)

Publication Type:

Working Papers

Source:

NIAS, Bengaluru, p.21 (2021)

Keywords:

Asset, consumption, Deprivation, India, Poverty, Regional variation

Abstract:

Consumption expenditure has been widely used in India to estimate poverty. It has recently been argued that these estimates have several weaknesses and an asset based index is a better indicator of deprivation. Building on the asset based indicator developed earlier, this paper estimates deprivation in India. It looks at two specific aspects of deprivation: (i) region and time-wise variations in deprivation in terms of absolute and relative deprivation, (ii)difference between deprivation and consumption-based poverty. The results suggest that there is a difference in the regional ranking of poverty depending on whether to consider the immediate consumption expenditure or the longer term picture of vulnerability provided by the asset based indicator of deprivation.