how poverty line is estimated in india
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The grand total is used to determine the 'poverty line' as seen above in the food requirement. As mentioned earlier, in India, the poverty line is determined separately for rural areas and urban area. The poverty line is estimated periodically once in five years, by conducting sample surveys
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A common method used to measure poverty line is based on income and consumption levels. A person is poor if his/her income level falls below the given minimum level
● While determining the poverty line, minimum level of food requirement, clothing, footwear etc. are determined for subsistence. These physical quantities are multiplied by their price in Rupees.
●The present formula for food requirement while estimating poverty line is based on the desired calorie requirement. Food items such as milk, cereals, pulses etc. together provide these calories. It depends on age and work done by a person. The average calorie for rural is 2400 and urban is 2100 calories per person per day.
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