how is poverty line is fixed in india on national level
Presently in India, poverty line is defined on the basis of the money value of the consumption basket that is required to consume a minimum number of calories. The minimum average calorie requirement is determined by the planning commission at 2435 calories and 2045 calories respectively for the rural and urban households. Based on the calorie requirement, 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 areas. It implies that in rural areas a person must consume 2435 calories. To purchase a consumption basket providing this much calories Rs 328 are required. Thus, in rural areas, a person who has less than Rs 328 is regarded as below poverty line. Similarly, in urban areas a person is required to consume 2045 calories and to purchase a consumption basket providing this much calories Rs 454 are required. This suggests that in urban areas, a person who has less than Rs 454 is regarded as below poverty line.