Question

Which of the following committees for the first time recommended for India
(i) use of implicit prices derived from quantity and value data collected in household consumer expenditure surveys for computing and updating the poverty lines 
(ii) Mixed Reference Period (MRP) in estimating poverty lines

• A. Y K Alagh Committee
• B. D T Lakdawala Committee
• C. S D Tendulkar Committee
• D. C Rangarajan Committee

Answer 1

The Correct Option is C

The question asks which committee first recommended the following two methodologies for computing and updating the poverty lines in India:

1. The use of implicit prices derived from quantity and value data collected in household consumer expenditure surveys.
2. Mixed Reference Period (MRP) in estimating poverty lines.

Let's analyze the options to determine the correct answer:

• Y K Alagh Committee: This committee, formed in 1979, was tasked with defining the poverty line in India. However, it did not focus on the use of implicit prices or the MRP methodology.
• D T Lakdawala Committee: The Lakdawala Committee, set up in 1993, recommended that the poverty line should be determined based on calorie intake. It did not suggest the use of implicit prices or MRP.
• S D Tendulkar Committee: The Tendulkar Committee, constituted in 2005, introduced several significant changes to the methodology for determining the poverty line. It recommended the use of implicit prices derived from quantity and value data for calculating poverty lines. The committee also advocated using the Mixed Reference Period (MRP) method to improve the accuracy of poverty estimates.
• C Rangarajan Committee: This committee was established in 2012 to review the Tendulkar methodology but did not introduce the initial recommendation of using implicit prices or MRP method.

Based on the above analysis, the correct answer is:

S D Tendulkar Committee

This committee's recommendations were pivotal in refining how poverty is measured in India, making the assessment more reflective of consumption patterns and needs. Therefore, both for the introduction of using implicit prices and the recommendation of the Mixed Reference Period, the S D Tendulkar Committee is acknowledged as the one that made these significant contributions to poverty estimation in India.