Q7 of 25 Page 3

How is poverty line estimated in India?

India is a country with an approximate population of 1.4 billion people out of which 260 million people living in India are victims of poverty. Therefore, to keep poverty in check a poverty line has been introduced in every economic system of the world. The concept of ‘poverty line’ is a method commonly used to measure poverty which is based on an individual’s income and consumption levels in relation to the country’s economy. Thus, an individual is considered poor if they fail to meet the minimum income and consumption level necessary to fulfil their basic needs. This line varied from country to country depending on their respective economies. In India, a certain person needs to acquire a minimum level of food, fuel, education and medical needs to achieve subsistence. These tangible quantities are made profound by their prices in rupees. For example, the present formula for food requirement is estimated by a man’s desired calorie needs.


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