Question

Describe how the poverty line is estimated in india?​

Answer 1

Answer:

There are different ways in which the poverty line in India can be estimated. Some of them are as follow:

Income method: In this method, there is a certain minimum income. If the personal income goes below this level then he'her considered below the poverty line and it is assumed that his income is not enough to fulfill the basic needs.

Consumption method: A minimum nutritional food requirement is measured and energy obtained from this food is measured in calories. If the calories requirement is not fulfilled then the person is considered to be below the poverty line.

Expenditure methods: In this method, the poverty line is estimated by using the expenditure of the person as a minimum level of food requirement, clothing, footwear, etc.

Answer 2

Explanation:

A person is considered poor if his or her income or consumption level falls below a given minimum level necessary to fulfil basic needs. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted

minimum social norms. This is called the poverty line.

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 subsistence. These physical quantities are multiplied by their prices in rupees, and thereby the poverty line is arrived at. The numbers involved in the

calculation of the poverty line vary. Since the economics of living in the rural parts of the country is different from that of living in the urban parts, the poverty line deducted for

individuals living in the rural areas is different from that deducted for individuals living in the urban areas.

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