POVERTY REDUCTION STRATEGY TN

threshold. Details of measurement of the poverty line in India (and various states) are
given in Appendix Tables 1.2 (a) and (b).
The rural poverty line for Tamil Nadu was equal to Rs. 196.53 in 1993-94 and Rs.
351.86 in 2004-05 (Table 1.2). In terms of purchasing power parity dollars (PPP $ = Rs.
7.02 in 1993), these figures translate into 0.93 PPP $ per day per capita in both the years
1993-94 and 2004-05 [see Appendix Table 1.2 (a)]. The urban line was estimated at
Rs. 296.63 in 1993-94 and Rs. 547.42 in 2004-05. These values translate into 1.41 PPP $
and 1.44 PPP $.
Table 1.2: Poverty Line in Tamil Nadu and All-India
(Rs. per capita per month at current prices)
Years
Rural
Urban
Tamil Nadu All India Tamil Nadu All India
1973-74 45.09 49.63 51.54 56.76
1977-78 56.62 56.84 67.02 70.33
1983 96.15 89.90 120.30 115.65
1987-88 118.23 115.20 165.82 162.16
1993-94 196.53 205.84 296.63 281.35
1999-00 307.64 327.56 475.60 454.11
2004-05 351.86 356.30 547.42 538.60
Source: Planning Commission and Government of India, Press Information Bureau.
In 1993-94, the average Indian poverty line was estimated at Rs. 205.84 per
capita per month for rural and Rs. 281.35 for urban areas. In 2004-05, it was equal to
Rs. 356.3 (= Rs.198 in 1993-94 prices) in rural and Rs. 538.6 (= Rs. 299 in 1993-94
prices) in urban areas. In terms of purchasing power parity dollars, per day rural poverty
line for the country declined from 0.98 PPP $ to 0.94 PPP $ and per day average urban
poverty line increased from 1.34 PPP $ to 1.42 PPP $. If we take the average figure for
the country, the Indian poverty line is close to the international poverty line used by the
World Bank (Bhalla, 2005).
It is observed that rural poverty line for Tamil Nadu was slightly lower than the
average rural line for the country while urban line for Tamil Nadu was slightly higher than
the average line for the nation [Appendix Table 1.2 (b)].
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