Question

Describe how the poverty line is estimated in India?​

Answer 1

Answer:

While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirements etc. are determined for subsistance. These physical quantities are multiplied by their price in rupees.

The present formula for food requirement while estimating the poverty line is based on the desired calorie requirement. Food items such as cereals, pulses, vegetables, milk, oil, sugar etc. together provide these needed calories. The need of calories depends on age and the work done by a person.

The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. The calorie requirement of the people in rural areas is higher than that of people living in urban areas because they do more physical work as compared to urban people. On the basis of the calculations for the year 2011-12, the poverty line for a person was fixed at rupees 816 per month for the rural areas and rupees 1000 per month for the urban areas.

Answer 2

$\large\mathcal\red{Explanation✓}$

A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfil the basic needs. This minimum level is called the poverty line. In India, the poverty line is estimated by multiplying the prices of physical quantities like food, clothing, footwear, fuel, light, education, etc. in rupees. The numbers involved in determining the poverty line vary for different years. Also, the poverty line for rural areas is different from that of the urban areas because the work, lifestyle and expenses are different for rural and urban areas.