From the time of independence, India has been suffering from acute poverty, most of it is chronic in nature. If we look at the percentage of people below the poverty line, we do notice a sharp fall, but the absolute number remains increasing at a high rate.
The situation keeps aggravating despite of several poverty alleviation programs that are implemented every year. The main reason for such failure, apart from the implementation issues, would be the measurement and numbers on which these programs are based. Appropriate measurement is central to analyzing and understanding poverty and its alleviation.
Joshi P.D. (1997) identifies the methods and indices used for measuring the magnitude and extent of poverty are not efficient enough to provide a real picture of the size and scale of the below poverty line. The poverty line is in itself an ambiguous scale. The variation in conceptualization and measurement approaches in defining the poverty line for a geographical area affects the spatial and intertemporal comparison in regard to the incidence of poverty.
Duflo E, Banerjee A. (2011) points out that the battle against poverty can be won, but it will take patience, careful thinking and a willingness to learn from evidence.
Hayati D. Et al. (2004) in their case study of Iran marks that poverty is increasingly recognized as a multifaceted concept that can be elucidated through both qualitative and quantitative analyses. A change in one dimension of poverty can lead to changes in other dimensions, illustrating the interlocking and mutually reinforcing nature of poverty.
In India, the first measure used for poverty measurement was calorie intake, which was very narrow in its application. The monetary method to determine poverty then came into the picture where is measured as a shortfall in monetary income or consumption below some pre-defined poverty line.
World Bank, 2000 ,however, explains that there have been many methodological