Which factors are required for calculating poverty line in India?
In India, poverty line is measured or calculated considering the following factors required for subsistence:
- Minimum level of food requirement
- Medical requirement
These physical quantities are multiplied by their prices in rupee. The formula for food requirement while estimating the poverty line is based on the desired calorie requirement. As per 2000 figures, the poverty line in the rural areas was fixed at 328 per capita per month and in urban areas, it was 454.
People earning more than this amount were considered above the poverty line and people earning less than this amount were considered as living below the poverty line.