The poverty line is an important way to measure poverty and economic inequality in India. It is used to identify those who are living below the poverty line, and to measure the progress of poverty alleviation initiatives in the country. In India, the poverty line is estimated using a variety of criteria, including income, expenditure, and deprivation levels.
Estimating India’s Poverty Line
The poverty line in India is estimated by the Planning Commission, a government body responsible for economic planning and development. The Planning Commission uses the Tendulkar methodology, which is based on the National Sample Survey Office (NSSO) data. This methodology uses a set of criteria to determine the poverty line, including income, expenditure, and deprivation levels. The poverty line is determined by taking into account the cost of basic needs such as food, clothing, and shelter, as well as other factors such as health, education, and sanitation.
Criteria Used for Estimation
The Tendulkar methodology uses income, expenditure, and deprivation levels to estimate the poverty line. Income is measured in terms of per capita consumption expenditure, while expenditure is measured in terms of the number of days in a month that people are able to purchase food. Deprivation levels are measured in terms of the number of people in a family who are not able to meet their basic needs. The poverty line is calculated by taking into account these three criteria.
The poverty line is an important indicator of economic inequality in India. The Planning Commission uses the Tendulkar methodology to estimate the poverty line in India, which takes into account income, expenditure, and deprivation levels. This helps to identify those who are living below the poverty line, and to measure the progress of poverty alleviation initiatives in the country.
