Describe how the poverty line is estimated in India.
Following are the methods which are used in calculating the poverty line in India:
1. Minimum level of food requirement, foot-wear, fuel and light, clothing, educational and medical requirements etc. are the basic factors on which the basis poverty line is calculated.
2. After deciding the minimum level and amount of the physical quantities, their prices are multiplied by the nominal prices and their summation tells the minimum poverty line basis.
3. While estimating the poverty line, the present formula is based on the desired calorie requirement.
4. In urban area the accepted average calorie requirement in India is 2100 calories per person per day and in rural areas the accepted average calorie requirement is 2400 calorie per person per day.