Question

How is poverty line estimated periodically

Answer 1

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in India the poverty line estimated by the two major methods:-

1). expenditure method

2). income method

let's try to understand about one.

1). expenditure method:-

a) expenditure method we first calculate what is a minimum calories required or nutrients required to our body to stay alive.

b) when we calculate minimum calories required for nutrients equired to our body to stay alive then we convert it into the money value in Rupees.

c). and then we add up the money required for clothing shelter and other basic necessities.

d). and then we get the total money value, then we set that money value as a poverty line.

if any person has the expenditure below that money value then it will be called as below poverty line.
and if any person has expenditure above that money value then it will be called as above poverty line.

let's understand what is the income method?

Income method :- in this method of estimating the poverty line first of all we choose money value that is the minimum amount for fulfilling the basic necessities.

if any person has has less than that fixed income then he will be considered as below poverty line.

and if any person has more than that fixed income then he will be considered as above poverty line.

hope you understand what are the two method for estimating the poverty line in India.