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Poverty Line
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A common method used to measure poverty is based on
income or consumption levels.
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A person is considered poor if his or her income or consumption level falls below a given
“minimum level”
necessary to fulfill basic needs.
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The
poverty line may vary with time and place.
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Each country uses an
imaginary line that is considered appropriate for its existing level of development
and its accepted minimum social norms.
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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.
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The present formula for food requirement while estimating the poverty line is based on the
desired calorie requirement.
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The calorie needs vary
depending on age, sex, and the type of work that a person does.
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The accepted average calorie requirement in India is
2400 calories per day in rural areas
and
2100 calories per person per day in urban areas.
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On the basis of these calculations, for the year 2011–12, the poverty line for a person was fixed at
Rs 816 per month for rural areas and Rs 1000 for urban areas.
- The poverty line is estimated periodically (normally every five years) by conducting sample surveys. These surveys are carried out by the National Sample Survey Organisation (NSSO).
