CH 3 - POVERTY
CH 3 - POVERTY
In India, the concept of Poverty line is used as a measure of absolute poverty. So BPL
(Below Poverty Line) is a line which demarcate the people, who are living below the
poverty from those, who are living above the poverty line.
The daily income and consumption method are used in India to estimate the poverty line.
Poverty today is looked upon through social indicators like illiteracy level, lack of access
to healthcare, lack of job opportunities etc.
(a) People are poor because they are illiterate and they are illiterate because they
are poor.
(b) Poverty is a situation where sick people cannot afford treatment, i.e., they lack
access to healthcare.
c)Poverty also implies lack of a regular job, at a minimum decent level.
• Explain the two methods to estimate poverty line.
Ans. The two methods used to estimate poverty line are:
(a) Income method: It this method, the poverty line is estimated with the help of
minimum income required. In the year 2011-12, the poverty line for a person was
fixed at 816 per month for the rural areas and ₹ 1,000 per month for the urban
areas. The higher amount for urban areas has been fixed because of high prices
of essential products in urban areas.
(b) Consumption method: In this method, the average calorie requirement of a
person is multiplied to the current prices. The accepted average calorie
requirement in India is 2,400 calories per person per day in rural areas and 2,100
calories per person per day in urban areas.