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Asked by Gaurang Last Modified
Answer 
Shivani Tiwari
Math magician
Poverty line refers to the estimated minimum income required to fulfill the basic necessities of life.
There are two common methods to estimate the poverty line. They are:
· Income method: As per government guidelines if the income of a person is below the set levels which is 40500 to 49000 in rural areas and 51500 to 60000 in urban areas the person is considered poor.
· Consumption method: The government has also set a limit for calorie intake, if a person is unable to consume the expected level due to financial constraints the person is considered to be poor.
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(i) Consumption method Determining the poverty line in India is based on the desired calorie requirement.
The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.
(ii) Income method For the year 2012, the poverty line for a person was fixed at 816 per month for the rural areas and 1000 for the urban areas.
(b) National Sample Survey Organisation (NSSO) conducts sample surveys to estimate poverty lines.
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