How are poor identified?

Poor in India and in many other countries are identified on the basis of a poverty line. It refers to the cut-off point in terms of per capita expenditure incurred by the people to satisfy the basic needs. The people lying below this cut-off point are considered as poor. For example, if the per capita expenditure of Rs 500 per month is taken as a cut-off point, then those surviving on a monthly income of less than Rs 500 are considered as poor. 

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