Describe how the poverty line is estimated n india .

1.	Describe how the poverty line is estimated n india .
Answer» Mainly two methods 1.Income method Under this method a minimum period capita income is FIXED.Example in 2011-12,the income was fixed at $816and $1000per capita per month in rural and urban AREAS respectively. If any family has an income less than the fixed income,it is considered as below the poverty line. This method is used to distribute food at SUBSIDISED priceso through PHD 2.Expenditure method Under this method, the minimum nutritional food requirecent for the survival is estimated. The total minimum food requirements is firstly measured in calories, which is then converted into MONEY value that is in rupees. A minimumamount which is required for CLOTHES and other requirements is added to money value of food.This total amount is considered as poverty line.

Answer»

Mainly two methods

1.Income method

Under this method a minimum period capita income is FIXED.Example in 2011-12,the income was fixed at $816and $1000per capita per month in rural and urban AREAS respectively. If any family has an income less than the fixed income,it is considered as below the poverty line. This method is used to distribute food at SUBSIDISED priceso through PHD

2.Expenditure method

Under this method, the minimum nutritional food requirecent for the survival is estimated. The total minimum food requirements is firstly measured in calories, which is then converted into MONEY value that is in rupees. A minimumamount which is required for CLOTHES and other requirements is added to money value of food.This total amount is considered as poverty line.

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