Question

How is poverty line determined in India in rural and urban areas, on the basis of income?

Answer 1

In India, poverty line is not determined in terms of annual income. Instead, it is determined in terms of consumption or spending per individual over a certain period for a basket of essential goods. The current poverty line is expenditure of Rs. 32 per day in rural areas and Rs. 47 per day in urban areas. Those spending below these figures is regarded as poor. The figure is lower for rural areas as prices are lower in rural areas.