Describe how poverty line is estimated in India??
In India poverty line is measured or calculated considering the following factors required for subsistence:1. Minimum level of food requirement,2. Clothing3. Footwear4. Fuel and Light5. Education and6. Medical requirement etc.These physical quantities are multiplied by their prices. The present formula for food requirement is based on the desired calorie requirement. On the basis of these calculations in 1999 - 2000, the poverty line in the rural areas was fixed Rs.328 per capita per month and in urban areas, it was Rs.454. People earning more than this amount were considered above the poverty line and earning less than this amount were considered as living below the poverty line.
Describe how poverty line is estimated in India??
Estimation of Poverty Line in India
The poverty line in India is estimated based on various factors and methodologies. Here is how it is typically calculated:
1. Planning Commission Methodology:
- The Planning Commission of India used to estimate poverty based on the calorie intake method. It determined the poverty line by calculating the minimum daily energy requirements and then converting it into monetary terms.
2. Tendulkar Committee Methodology:
- The Tendulkar Committee revised the estimation of poverty line by considering not just calorie intake but also other essential expenditures like health and education.
- It also included factors like inflation and varying food prices in different regions.
3. Rangarajan Committee Methodology:
- The Rangarajan Committee further updated the poverty line estimation by including more comprehensive criteria like health, education, and clothing expenses.
- It also considered the Multidimensional Poverty Index that takes into account various deprivations beyond income.
4. Mixed Methodology:
- Currently, the poverty line in India is estimated using a mixed methodology that combines consumption expenditure data with other indicators like household assets, access to basic services, and living conditions.
The estimation of the poverty line in India is crucial for determining government policies, welfare programs, and allocation of resources to uplift the living standards of the poor population.
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