Study Guides/Civics/Poverty Line Estimation in India
Study Guide · Civics

How is the Poverty Line Estimated in India?

In Economics (Class 9 - Poverty as a Challenge), understanding who is considered 'poor' is a fundamental concept. In India, the Poverty Line is estimated periodically (normally every 5 years) based on a minimum level of food requirement and basic non-food expenses.

Question (Click to Flip)

How is the poverty line estimated in India?

Answer

The poverty line is estimated based on the minimum daily calorie requirement (2400 calories for rural, 2100 for urban) and the minimum monthly expenditure required to buy that food and basic necessities.

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Key Facts

Rural Calorie Need: 2400 kcal/day.

Urban Calorie Need: 2100 kcal/day.

Poverty Line (2011-12): ₹816 (Rural) and ₹1000 (Urban) per month.

Conducting Body: NSSO (National Sample Survey Organisation).

The Two Main Criteria

The poverty line in India is calculated using two main parameters:

1. Minimum Calorie Requirement (Food)

  • Rural Areas: 2400 calories per person per day.
  • Urban Areas: 2100 calories per person per day. (Rural people need more calories because they engage in more physical labour).

2. Monetary Value (Income/Consumption) The calorie requirement is converted into its monetary value (how much money is needed to buy that food), along with a minimum amount for clothing, footwear, fuel, light, and education.

  • Rural Areas: Rs 816 per month per person (as per 2011-12 data).
  • Urban Areas: Rs 1000 per month per person. *(Urban income requirement is higher due to the higher cost of living in cities).

Who does the estimation?

The poverty line is estimated by conducting massive sample surveys across the country. These surveys are carried out by the NSSO (National Sample Survey Organisation) under the Ministry of Statistics.

Questions and Answers

How is the poverty line estimated in India?+

The poverty line is estimated based on the minimum daily calorie requirement (2400 calories for rural, 2100 for urban) and the minimum monthly expenditure required to buy that food and basic necessities.

Why is the calorie requirement higher in rural areas?+

People living in rural areas generally engage in more strenuous physical labour (like farming) compared to urban residents, so they require more calories.

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