describe how the poverty line is estimated in india

Solution

The line of poverty is a figure by the consumption level in India. The basic needs include a minimum amount of clothing, food, educational and medical requirements, etc. The minimum conditions are determined in Rupees and added to the amount of income needed to meet basic requirements. An individual is considered poor if their income falls lower than the minimum required to satisfy basic needs.

The minimum nutritional requirements for survival are determined, and the energy derived is measured in calories. The most commonly accepted calories requirements within India are 2400 in rural areas and 2100 for urban areas.

In determining the poverty level in India, an amount that is a minimum of food requirements and footwear, clothing as well as light and fuel medical and educational requirement, and so on. is established for subsistence. Then the cost per item on the items in this basket is calculated.

Examine the main causes of the poverty rate in India

Many factors contributed to the widespread poverty that exists in India. One reason rooted in history is the poor level of economic development during the British colonial administration. . The slow rate of growth was evident until the late nineteen-eighties. This resulted in fewer opportunities for employment and a low increase in income. This was followed by an extremely high rate of growth in the population. Both of these factors made the growth rate in per capita income extremely low. Another factor contributing to high poverty rates is the enormous income inequality. One of the main reasons is the uneven distributive distribution of the land and other sources. Despite a myriad of policies, we haven’t addressed the problem constructively.

Do you think the current method of poverty estimation is correct?

This method of poverty estimation isn’t adequate because it considers only the necessities of clothing, food, and fuel. However, their quality is poor. Essentials are not the best that is available. The amount set to be the “poverty line” doesn’t contain the margin needed for continuous price fluctuation. The poverty line should have some adjustments for inflation and market fluctuations.