Question

How is the poverty line estimated in India?

Answer 1

A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfil the basic needs. This minimum level is called the poverty line. In India, the poverty line is estimated by multiplying the prices of physical quantities like food, clothing, footwear, fuel, light, education, etc. in rupees. The numbers involved in determining the poverty line vary for different years. Also, the poverty line for rural areas is different from that of the urban areas because the work, lifestyle and expenses are different for rural and urban areas.