EXPLAIN THE POVERTY LINE AND POVERTY ESTIMATES?

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Please find below the solution of the asked query:


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.
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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 fulfil basic needs. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms. This is called the poverty line.

While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirements, etc., are determined for subsistence. These physical quantities are multiplied by their prices in rupees, and thereby the poverty line is arrived at. The numbers involved in the calculation of the poverty line vary. Since the economics of living in the rural parts of the country is different from that of living in the urban parts, the poverty line deducted for individuals living in the rural areas is different from that deducted for individuals living in the urban areas.

and for estimates better read from ur NCERT text book pg.-32 rhs last paragraph

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People who cannot afford meals worth 2400 calories per day in rural areas are considered to be living below poverty line.

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