The absence of updated poverty estimates undermines the credibility of welfare targeting in India. Evaluate the implications of outdated poverty data. Assess its impact on the effectiveness of social sector schemes.

Topic: Issues relating to poverty and hunger.

Q3. The absence of updated poverty estimates undermines the credibility of welfare targeting in India. Evaluate the implications of outdated poverty data. Assess its impact on the effectiveness of social sector schemes. (10 M)

Difficulty Level: Medium

Reference: DTE

Why the question
Growing concerns over absence of updated poverty data and its implications for welfare targeting and governance efficiency in India.

Key Demand of the question
The question requires evaluating how outdated poverty estimates affect credibility of targeting and examining their consequences on effectiveness of social sector schemes. It expects linking data gaps with governance outcomes.

Structure of the Answer:

Introduction
Briefly link poverty estimation with constitutional commitment to welfare state and evidence-based governance.

Body

• Implications on credibility: Explain how outdated data leads to targeting errors and weakens trust in policy frameworks.
• Impact on scheme effectiveness: Show how flawed identification affects delivery, inclusion-exclusion errors, and scheme outcomes.

Conclusion
Suggest need for updated, transparent and dynamic poverty estimation to improve governance efficiency.