The correct answer is Neither 1 nor 2.

• Dadabhai Naoroji was the first to discuss the concept of a Poverty Line in pre-independent India. Hence, Statement 1 is correct.
  • He used the menu for a prisoner and used appropriate prevailing prices to arrive at what may be called ‘Jail Cost of Living’.
  • His estimation was not very accurate as he ignored the fact that there are only adults in jail and not children.
• In post-independent India, there have been several attempts.
  • The Planning Commission formed a Study Group in 1962.
  • In 1979, another body called the ‘Task Force on Projections of Minimum Needs and Effective Consumption Demand’ was formed. Hence, Statement 2 is correct.
  • In 1989 and 2005, ‘Expert Groups’ were constituted for the same purpose.
  • Besides the Planning Commission, many individual economists have also attempted to develop such a mechanism.
• In post-independent India, there has hardly been any attempt to work out a mechanism to identify the number of poor in the country, up to 1990.
• Besides the Planning Commission, no individual efforts have been attempted to develop such a mechanism.

• Dadabhai Naoroji was the author of Poverty and Un-British Rule in India which brought attention to the Indian wealth drain into Britain.
• He explained the Drain of Wealth Theory in his book.