define poverty line?what are the criterias to decide the poverty line?

Poverty line refers to the cut off point in terms of per capita expenditure incurred by the people to satisfy basic needs. The people lying below this cut-off point are considered as poor. For example, i f the per capita expenditure of Rs 300 per month is taken as a cutoff point, then those surviving on a monthly income of less than Rs 300 are considered as poor. According to the estimates, in 1999-2000, there were 260 million below poverty line.

In India, calorie based norm is used to define poverty. The minimum average calorie requirement is determined by the planning commission at 2435 calories and 2045 calories respectively for the rural households and urban households. Based on the calorie requirements, in 1999-2000 poverty line was fixed at Rs 328 per person per month for rural households and Rs 454 per person per month for urban households. 

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