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. ... In India, the poverty line is estimated by multiplying the prices of physical quantities like food, clothing, footwear, fuel, light, education, etc

The poverty line in India is estimated based on various factors and methodologies. The government uses a consumption-based approach to determine the poverty line, which takes into account the minimum level of consumption required for a person to meet their basic needs.



The Tendulkar Committee, appointed by the Government of India, recommended a methodology for estimating the poverty line. This methodology considers both calorie intake and non-food expenditure. It takes into account the cost of a specific basket of goods and services required for a minimum standard of living.



The estimation of the poverty line in India involves the following steps:

1. Selection of Poverty Line: The first step is to determine the poverty line. The Tendulkar Committee recommended using a poverty line based on the consumption of 2,400 calories per person per day in rural areas and 2,100 calories in urban areas.

2. Collection of Consumption Data: Data on consumption patterns is collected through large-scale surveys conducted by the National Sample Survey Office (NSSO). These surveys collect information on food and non-food items consumed by households.

3. Estimation of Poverty Ratio: The poverty ratio is the percentage of people below the poverty line. It is calculated by comparing the average per capita consumption expenditure of households with the poverty line consumption expenditure.

4. Adjustment for Regional Variation: Since the cost of living varies across different regions in India, adjustments are made to account for regional variations in the estimation of the poverty line.

5. Updating the Poverty Line: The poverty line is updated periodically to account for changes in prices and consumption patterns over time.



The estimation of the poverty line in India has faced criticism for various reasons. Some argue that the calorie-based approach does not capture the multidimensional nature of poverty and fails to account for factors such as healthcare, education, and housing. Others suggest alternative measures like the Multidimensional Poverty Index (MPI), which takes into account a range of deprivations faced by individuals.

In conclusion, the estimation of the poverty line in India involves a consumption-based approach, considering factors such as calorie intake and non-food expenditure. The Tendulkar Committee methodology provides a framework for estimating the poverty line, which is periodically updated to reflect changes in consumption patterns and regional variations. However, there are ongoing debates about the adequacy of this methodology in capturing the multidimensional aspects of poverty.