Saturday, October 15, 2011

The positive side of "Rs. 32"

The Planning Commission of India finds itself in a spot after submitting before the Supreme Court that the poor are those who, per day, spend less than Rs. 25 and Rs. 32 in rural and urban areas, respectively. While it’s always debatable whether the right methodology has been adopted or how valid these numbers are, but this "Rs. 32 debate" does have some positive significance as far as our macro policies are concerned. Let’s discuss the two major ones.