Describe how the poverty line is estimated in India?
The poverty line is estimated in India into the following methods:
(i)Income Method — Under Income method, a minimum per capita income is fixed like in 1999-2000, the income was fixed at Rs. 328 per capita per month, and in urban areas it was Rs. 454. If any family has less than the fixed income, it is considered as below the poverty line. This method is used to distribute food at subsidized price through PDS.
(ii)Expenditure Method —
(a)Under this method the minimum nutritional food requirement for survival is estimated. The total minimum food requirement is firstly measured in calories. The calories is then converted into money value.
(b)A minimum amount which is required for clothes and other requirements is added to the money value of food. This total amount is considered as poverty line.
(c)All the families which spend less than the poverty line are considered as below the poverty line families. In India, the daily minimum nutritional requirement for a person has been fixed at 2400 calories in rural areas, and 2100 calories in urban areas.
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