Each country uses different poverty lines because different countries’ basic needs vary according to their social and economic situations. Because of the variable cost of living which varies from country to country different countries have different poverty lines. In some countries the income required to live a life which is above poverty line is lower than the income require to live a life which is above poverty line in another country. For example, if we look at America then its basic need is car where the basic need of India is bread, cloth and house. A person will be categorised under the poor in America if she/he doesn’t have a car but in India, car is still considered a luxury item.