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Understanding India through Data

More or Less: Behind the Stats

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Is India Using Consumption as a Proxy for Income?

India uses consumption as a proxy for income because the official statistical system sort of accepts that. A large majority of the country continues to derive income from agricultural sources, which are notoriously hard to estimate. Neither india nor most of the world have a very strong sense of where consumption and, as a result, poverty stand right now in India.

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