Question

Which factor is required for calculating poverty in India

Answer 1

Income level is important for calculating poverty in any country

Answer 2

An important criteria,factor or parameter used for poverty estimation in India is the income/consumption level of the general population.

Explanation:

Based on the criteria or parameter set by Niti Ayog formerly known as Planning Commission,the government agency entrusted for poverty calculation in India,if the overall income or consumption level of any household falls below a minimum stipulated threshold then that household would be considered to be living below the poverty line.The determination of the poverty line is done by the specific team of Niti Ayog with the assistance of the sample data collected by the National Sample Survey Office,which is under the Central Government of India.To estimate poverty at the household level,the data on the overall consumption expenditure of the individual households are collected and compared with the stipulated poverty line or threshold to estimate the household level poverty.Again,if it falls below the specified poverty line then the particular household will be considered below the poverty line.