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How is the poverty line estimated in India? - Economics
How is the poverty line estimated in India?
In India, the poverty line is estimated using a minimum level of income or consumption expenditure. The following criteria are used:
Calorie Requirement: The accepted average calorie requirement in India is 2,400 calories per person per day in rural areas and 2,100 calories per person per day in urban areas. The requirement is higher in rural areas because people engage in more physical labor.
Monetary Value: Based on these calorie requirements and prices of other basic needs (clothing, fuel, light, education, etc.), the poverty line is fixed in terms of monthly per capita expenditure.
As per 2011-12 data, the poverty line was fixed at ₹816 per month for rural areas and ₹1,000 per month for urban areas.
Survey Method: The poverty line is revised periodically (usually every five years) by conducting sample surveys.
Responsible Agency: These surveys are conducted by the National Sample Survey Organisation (NSSO).
International Standard: For making comparisons between developing countries, the World Bank uses a uniform standard (e.g., $2.15 per person per day at 2017 purchasing power parity).