Meaning of Poverty:

• If a larger population is living below the minimum required standard of living, there exist poverty.
• Poverty being a relative concept, its meaning changes with time, place and society.

1. Traditional meaning of Poverty OR Income Poverty:

A certain normative minimum level of per capita consumption expenditure required to ascertain minimum basic needs and services is called poverty line.

• People who have less than required income or spend less than required minimum expenditure are said to be poor.
• Thus, poverty is a state of scarcity.
• Poverty line shows the situation of non-availability of food or starvation.
• Poverty is not only the situation of starvation. It includes apart from food other necessities required for minimum standard of living.

2. Modern meaning of Poverty OR Non-income Poverty:

• For minimum required ‘ standard of living, apart from food, other necessities such as clothing, housing, education, health, cleanliness, pure drinking water are also required. This modern approach of poverty is called non-income poverty.
• In modern approach of poverty, with income other important elements of human development such as knowledge, long and healthy life, good standard of living, individual freedom, availability of opportunity, life with choices and self-respect, etc. are also considered.