What are the two methods of estimating the poverty line ?
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The poverty line is estimated by two methods . first, is the income and consumption in this the people living in rural area need ₹816 per person per month and in urban area need ₹1000 per person per month thus they are consisdered as above poverty line.
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The two methods to estimate poverty lines are:
i) Consumption method- determining the poverty line in India based on the desired calorie requirement. E.g. the 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 Rs. 816 per month in rural areas and Rs. 1000 per month in urban areas.
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