Is India Poor?

Read this first! Is India Poor?

I feel the report is overemphasizing on the way you eat food. (42% of Indians are poor? Kidding?)

They are talking about spending only $1.25 per day for food in a small family (1 or 2 kids).

Absolutely that is possible, if your lifestyle is like that. I am not saying it has to be liek that.

Here is my analysis.

$1.25 = Rs 55/- (approx.). That means you should be able to get 1 KG Rice or Wheat easily at Rs 20 max, 250 gms of Dhal for Rs 12, Milk 1 litre for Rs 18 and Misc on an average basis the rest of Rs 5/-.

Yes these folks, at times, have to save money too! (This point is the truth, which drives most crazy in our Indian economy). True savings potential, reflects what one person is capable off. Rainy day savings they say. So if a person, does not have money for rainy days, he is poor.

Now look at the aspect of NREGS (National Rural Employment Guarantee Scheme) offering to pay Rs 100/- minimum for a man and Rs 80/- minimum for a women based on the hardwork determined. This is one good scheme by the UPA govt. supported by the leftists, well architected. (except for some politicians trying to eat it off at Rettanai in Tamilnadu, with bogus workers). Such people, if bothhusband and wife works, should be able to earn a decent living for 100 working days. Rs 180/- x 100 = Rs 18, 000/- on an average about Rs 50 per day, but they get subsidized ration and various other benefits, based on the states (Tamilnadu gives Rs 2/- per KG of Rice, at a max of 30 KGs per family, Andhra gives at Rs 3/- per KG at 30 KGs....)

In all as Swaminathan S Ankleshwara Aiyer says, "so what is govt. going to do to the bottom most pit of our societies.". Good question asked. When economy grows, and with rising inflation, the wages have to be increased too!