3 india uses 1 point mechanism to identify the poor o a monthly income b monthly per capita Ο Ο c. adult jail cost of living
Answers
According to recent reports, more than a quarter of the population living in rural areas of India is below the poverty line. Out of the total population living in the rural parts of India, 25.7% is living below the poverty line whereas in the urban areas, the situation is a bit better with 13.7% of the population living below the poverty line.
Poverty Estimation
A common method used to estimate poverty in India is based on the income or consumptionlevels and if the income or consumption falls below a given minimum level, then the household is said to be Below the Poverty Line (BPL).
Poverty Line Calculation: Poverty estimation in India is now carried out by NITI Aayog’stask force through the calculation of poverty line based on the data captured by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI).
NITI Aayog as a policy think tank has replaced Planning Commission, which was earlier responsible for calculating the poverty line in India.
Consumption Versus Income Level: Poverty line estimation in India is based on the consumption expenditure and not on the income levels because of the following reasons:
Variation in Income: Income of self-employed people, daily wage laborers etc. is highly variable both temporally and spatially, while consumption pattern are comparatively much stable.
Additional Income: Even in the case of regular wage earners, there are additional side incomes in many cases, which is difficult to take into account.
Data Collection: In case of consumption based poverty line, sample based surveys use a reference period (say 30 days) in which households are asked about their consumption of last 30 days and is taken as the representative of general consumption.
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Answer:
A common method used to estimate poverty in India is based on the income or consumption levels and if the income or consumption falls below a given minimum level, then the household is said to be Below the Poverty Line (BPL).
Explanation:
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