Poverty ratio in the country has declined to 21.9 per cent in 2011-12 from 37.2 per cent in 2004-05 on account of increase in per capita consumption. The Planning Commission in its Poverty Estimates for 2011-12, said that the country had 270 million persons below the poverty line as compared to 407 million in 2004-05. It said the percentage of persons below poverty line in 2011-12 has been estimated at 25.7 per cent in rural areas, 13.7 per cent in urban areas and 21.9 per cent for the country as a whole.

For 2011-12, for rural areas the national poverty line estimated at Rs. 816 per capita per month and Rs. 1,000 per capita per month in Urban areas. This ratio is based on the methodology suggested by Suresh Tendulkar Committee which factors in money spent on health and education besides calorie intake to fix a poverty line.

The Commission said that for a family of five, the all India poverty line in terms of consumption expenditure would amount of Rs 4,080 per month in rural areas and Rs 5,000 per month in urban areas. The poverty line however will vary from state to state.

The Commission added the decline in poverty is mainly on account of rising real per capita consumption figures which is based on 68th round of National Sample Survey on Household Consumer Expenditure in India in 2011-12.

Earlier, a committee was appointed under Prime Minister's Economic Advisory Council Chairman C Rangarajan to revisit the Tendulkar Committee methodology for tabulating poverty.

AIR correspondent reports, that the trend decline documented based on Tendulkar Poverty line may be revised by the Rangarajan Committee. However the increase of poverty line will not alter the fact of a decline. While the absolute levels of poverty will be higher and the rate of decline will be similar.

The Committee is expected to submit its report by mid 2014.