describe how the poverty line is estimated in India
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A common method used to measure poverty is based on the income or consumption levels. A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to full fill basic needs.
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The poverty line is estimated in India in following ways:
Income Method: A person is considered poor if his or her income falls below a given minimum level necessary to fulfil basic needs.
Consumption Method: A minimum nutritional food requirement for survival is estimated and energy obtained is measured in calories. The accepted average of calorie requirement in India :)
Expenditure Method: While determining the poverty line in India a minimum level of food requirement, clothing , footwear, fuel, and light , educational and medical requirement etc. Are determined for subsistence.
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a person who spends Rs. 27.2 in rural areas and Rs. 33.3 in urban areas a day are defined as living below the poverty line.
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