A common method used to measure poverty is based on the income or consumption levels.
A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfil basic needs.
Poverty line may vary with time and place.
For example, a person not having a car in the United States may be considered poor. In India, owning of a car is still considered a luxury.
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.
