I. THE ISSUES AND THE BACKGROUND

The 55th round of the NSS, which used a different methodology from all previous NSS rounds and arrived at lower poverty estimates, has confused about what happened to poverty and inequality in India during the 1990s. A consensus from earlier NSS rounds that poverty reduction had been setback during the 1990s was challenged. This was bolstered apparently by some ‘adjustments’, which although agreeing that the 55th round had overestimated poverty reduction, claimed that the number of poor had nonetheless fallen by 30-45 million. However, a detailed re-examination shows that these ‘adjustments ’ got it wrong, and that the earlier consensus was correct after all. It is now certain that economic inequality increased sharply during the 1990s in all its aspects and, as a result, poverty reduction deteriorated markedly despite higher growth. It is most likely that the number of poor increased during the decade. This has implications for policy, and lessons for future survey design