Describe how the poverty line is estimated in india class 9?
Question: Describe how the poverty line is estimated in india class 9?
The poverty line in India is estimated by using the cost of basic needs approach. This approach calculates the minimum amount of money that a person needs to spend in order to meet their basic needs, such as food, clothing, shelter, and healthcare.
The poverty line is estimated separately for rural and urban areas, as the cost of living is different in these two areas.
To estimate the poverty line, the government surveys households to determine their consumption expenditure. The consumption expenditure is then used to calculate the minimum calorie requirement for a person. The minimum calorie requirement is the number of calories that a person needs to consume in order to maintain a healthy weight.
Once the minimum calorie requirement has been determined, the government calculates the cost of meeting this requirement. This cost is then used to set the poverty line.
The poverty line is updated every five years to reflect changes in the cost of living.
Here is an example of how the poverty line is estimated in India:
- The government surveys 100 households in a rural area to determine their consumption expenditure.
- The average consumption expenditure per household is found to be Rs. 500 per month.
- The government uses this information to calculate the minimum calorie requirement for a person in a rural area.
- The minimum calorie requirement is found to be 2,200 calories per day.
- The government then calculates the cost of meeting this requirement. The cost is found to be Rs. 30 per day.
- The poverty line in the rural area is then set at Rs. 30 per day.
The poverty line in India is an important tool for estimating the number of people living in poverty. It is also used to target government programs and policies to the poorest people in the country.
Here are some of the challenges of estimating the poverty line in India:
- The cost of living varies depending on the region, location, and type of household.
- It is difficult to accurately measure the consumption expenditure of households.
- The poverty line is often criticized for being too low.
Despite these challenges, the poverty line is an important tool for measuring poverty in India.
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