Poverty in India is measured at the absolute level, or the minimum amount of money required for subsistence. The poverty line is defined as the amount of money required in a rural location to maintain a per capita caloric intake of 2,100 calories. These estimates are based on NSSO surveys’ monthly per capita expenditure baskets. According to the current estimates, Chhattisgarh, Jharkhand, Manipur, Arunachal Pradesh, and Bihar have the largest proportion of BPL people.

In 2011-12, a panel led by Suresh Tendulkar concluded that those who spend Rs. 27 in rural areas and Rs. 33 in urban areas are not poor. In a report issued to the BJP administration in July 2014, an expert panel led by former RBI governor C. Rangarajan stated that anyone spending more than Rs 32 per day in rural regions and Rs 47 per day in towns and cities should not be deemed poor.

Poverty:

Poverty is defined as a lack of material resources or a low level of income. Poverty can result from a variety of social, economic, and political factors. There are two main measures of poverty in statistics and economics: absolute poverty compares income to the amount required to meet basic personal requirements like food, clothes, and shelter; and relative poverty compares a person’s living standards to those of others in the same period and place. Relative poverty is defined differently in different countries and societies.

  • Poverty is defined as a state or condition in which an individual or a group lacks the financial means and necessities for a basic level of living
  • Poverty-stricken individuals and families may be deprived of adequate housing, safe drinking water, nutritious food, and medical care

Below the poverty line in India 2021 criteria:

The government of India uses the “Below Poverty Line” as a criterion for determining economic disadvantage and identifying individuals and households in need of government help. It is calculated based on a number of factors that differ from state to state and within states. 

India’s economy is one of the world’s most rapidly rising. India will be the world’s fastest-expanding economy in 2021, according to the International Monetary Fund (IMF), with a growth rate of 11.5 percent. In 2021, it will be the only country on the planet to grow by double digits. However, in early 2020, India was hit by a rapid outbreak of the new coronavirus, which drove many people into poverty. By the end of 2021, an additional 150-199 million people are expected to be living in poverty. Thousands of jobs were lost as a result of the outbreak. India’s poverty rate is expected to increase in the next few years. Approximately 7 million jobs were lost in a year, according to the CMIE survey. 

For rural and urban locations, various criteria apply. The degree of deprivation is quantified using metrics with scores ranging from 0 to 4, with 13 parameters in its Tenth Five-Year Plan. BPL families have 17 or fewer marks (formerly 15 or less) out of a possible 52. In India, the poverty line is determined exclusively by per capita income, not by price levels.

How is the poverty line determined in India?

The poverty line determined in India:

  • A minimum amount of food, clothing, footwear, fuel and light, educational and medical requirements, and so on are considered for calculating the poverty line in India
  • The current food-need methodology is based on the desired calorie requirement when calculating the poverty line. In India, the recommended daily calorie requirement for rural areas is 2400 calories while for urban areas is 2100 calories
  • The poverty level for a person in 2000 was set at Rs. 328 per month in rural regions and Rs. 454 in urban areas, based on these estimations
  • It means that a person living in rural areas earns less than Rs. 328 per month is considered poor. In the same way, someone living in the city and earning less than Rs. 454 per month is considered poor.

Conclusion:

  • Poverty is defined as a state or condition in which an individual or a group lacks the financial means and necessities for a basic level of living. There are two main measures of poverty in statistics and economics: absolute poverty compares income to the amount required to meet basic personal requirements like food, clothes, and shelter; and relative poverty compares a person’s living standards to those of others in the same period and place