poverty in India

Although recent positive economic developments have helped the Indian middle-class a great deal, India still suffers from substantial poverty. The Planning Commission, which is the nodal official agency for poverty estimation, has estimated that 27.5% of the population was living below the poverty line in 2004–2005, down from 51.3% in 1977–1978, and 36% in 1993-1994[1]. The source for this was the 61st round of the National Sample Survey (NSS) and the criterion used was monthly per capita consumption expenditure below Rs. 356.35 for rural areas and Rs. 538.60 for urban areas. 75% of the poor are in rural areas with most of them comprising daily wagers, self-employed households and landless labourers.

As of 2004, India's Human Development Index is 0.611, higher than that of nearby countries line Bangladesh (0.530) and Pakistan (0.539), but lower than Vietnam (0.709) or China (0.768).

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