question_answer 8)

Describe how poverty line is estimated in India.  

Answer:

A common method used to measure poverty is based on 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 fulfill basic needs.   (a) 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. These physical quantities are multiplied by their price in rupees.   (b) The present formula for food requirement while estimating the poverty line is based on the desired calorie requirement.   (c) Food items such a cereals, pulses, vegetables, milk, oil, sugar etc together provide these needed calories. The need of calories depends on age and the work done by a person.   (d) 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.   (e) The calorie requirement of the people in rural areas is higher than that of the people living in urban areas because they do more physical work as compared to urban people.   (f) On the basis of these calculations for the year 2000, the poverty line for a person was fixed at ` 328 per month for the rural areas and ` 454 for the urban areas.   (g) Despite less calorie requirement the higher amount for urban areas is because of the high prices of many essential products in urban centers.