Question

Discuss the methods used to measure poverty

Answer 1

Poverty Line is a common method used to measure poverty based on income and consumption level.

i) While the poverty line in India is determined, a minimum level of food requirement , clothing, footwear,light educational and medical requirement etc. are determined for subsistence.

ii)the physical quantities are multiplied by their prices in rupees.

iii)the present formula for estimation of poverty in India is based on the desired calorie requirement. Food items such as fruits, milk, oil, pulses, vegetables etc. together provide these calories.

iv)calorie needs vary depending on age and the type of work a person does.

v)In India, the average calorie requirement is 2400 calorie per person per day in rural areas and 2100 calorie per person per day, because rural people engage themselves more in physical work