Question

describe how the poverty line is estimated in India?​

Answer 1

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.

Answer 2

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.

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