RRB JE CBT2 : EXPERT
01 Jun

Poverty Estimation and Industrial Development in India

Tendulkar Methodology for Poverty Estimation

The Tendulkar Methodology is used to estimate the percentage of people living below the Poverty Line in India. It was named after Suresh Tendulkar, who chaired the committee constituted to review poverty estimation in the country.A major feature of this methodology was the shift from the earlier calorie intake-based approach to a consumption expenditure-based approach. Poverty estimation under this method is based on Monthly Per Capita Consumption Expenditure (MPCE), which takes into account expenditure on food, education, and health.According to the Tendulkar Methodology, the proportion of people living below the poverty line in rural India was estimated at 25.7% in 2011–12. The methodology introduced a broader assessment of living standards by incorporating essential consumption expenditures beyond food requirements.


Industrial Policy Resolution, 1956

The Industrial Policy Resolution (IPR), 1956 was a landmark policy document in India's industrial development. The policy aimed to accelerate the pace of industrialization, strengthen the public sector, reduce income inequalities, and ensure a more equitable distribution of wealth.The policy classified industries into three schedules:

ScheduleDescription
Schedule AIndustries reserved exclusively for the State.
Schedule BIndustries in which the State would progressively expand ownership, while private sector participation was permitted.
Schedule CAll remaining industries left to the private sector, with the State generally taking measures to support their growth.

This classification established the framework for the respective roles of the public and private sectors in India's industrial economy.


Secondary Sector and Electricity Production

Electricity production is classified under the Secondary Sector of the economy.The Secondary Sector comprises activities that involve the processing, manufacturing, and construction of products from raw materials. It includes manufacturing industries, construction activities, and utility services such as electricity, gas, and water supply.Electricity generation involves the transformation of raw materials and natural resources, such as coal, natural gas, and water, into usable energy. Because it converts inputs into a usable product, it is categorized as a secondary economic activity.The Secondary Sector plays a crucial role in industrial development and economic growth. Examples of activities within this sector include steel production, automobile manufacturing, textile production, and electricity generation.

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