Question

there are 2 approaches to estimate poverty line explain the methodology of poverty estimation in India

Answer 1

Hey friend

Poverty can be measured by :

Defining welfare measures

Choosing and estimating poverty lines

Choosing and estimating poverty indicators

(a) What are the different methods to estimate poverty?
(b) Who conducts the sample surveys to estimate poverty lines?

(a) The two common methods to measure poverty lines are
(i) Consumption method Determining the poverty line in India is based on the desired calorie requirement.
The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.
(ii) Income method For the year 2012, the poverty line for a person was fixed at 816 per month for the rural areas and 1000 for the urban areas.
(b) National Sample Survey Organisation (NSSO) conducts sample surveys to estimate poverty lines.

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Answer 2

Answer:

While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirements etc. are determined for subsistance. These physical quantities are multiplied by their price in rupees.

The present formula for food requirement while estimating the poverty line is based on the desired calorie requirement. Food items such as cereals, pulses, vegetables, milk, oil, sugar etc. together provide these needed calories. The need of calories depends on age and the work done by a person.

The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. The calorie requirement of the people in rural areas is higher than that of people living in urban areas because they do more physical work as compared to urban people. On the basis of the calculations for the year 2011-12, the poverty line for a person was fixed at rupees 816 per month for the rural areas and rupees 1000 per month for the urban areas.