Question

Describe how the poverty line is estimated in India.

Answer 1

(i) While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement etc. are determined for subsistence.
(ii) The present formula for food requirement while estimating the poverty line 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.
(iii) On the basis of these calculations, for the year 2000, the poverty line for a person was fixed at Rs. 328 per month for the rural areas and Rs. 454 for the urban areas.
(iv) It means a person living in rural areas and earning less than Rs. 328 per month will be below the poverty line. In the same way, a person living in urban areas and earning less than Rs. 454 per month will be below the poverty line.