Question

Explain the concept of Poverty Line. What are the limits of poverty line in India?

Answer 1

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By this estimate, about 21.2% of Indians are extremely poor.Going into a survey due for a decade, India's central government is undecided on criteria to identify families below poverty line. 

Answer 2

The poverty line is the minimum amount of income to be procured by an individual or a family to satisfy the necessities.

Explanation:

• Poverty line is a minimum level of income that will be meets with the particular country.
• It is a amount of money needed by the person to meet the basic needs.
• It was set by the government which tells whether the person is in the middle class or a poor category.
• The minimum calorie input for an average Indian was recorded to be 2400 per person every day in the rural areas and 2000 calories per person every day in the urban areas.
• In the year of 2000, the poverty line calculated for a particular individual was around Rs. 328 per month (rural) and Rs. 454 per month (urban).
• The limitations are  

1. The income that does not account for the government taxes .
2. Relies on self-reported income data from surveys;
3. It ignores the geographical differenced in income earnings.

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