How is the poverty line determined in India?

  1. Based on the ownership of cars

  2.  By considering the desired calorie requirement

  3. Using a uniform standard set by international organizations

  4. Through sample surveys conducted by the NSSO

Answer:

Answer by Student

So, the correct answer is (D): Through sample surveys conducted by the NSSO

Detailed Explanation by Teachoo

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Let’s check all the options and their relevance to the poverty line in India

  • Option A: Based on the ownership of cars -  The ownership of cars is not a reliable indicator of poverty, as it does not reflect the income or consumption levels of the people. Moreover, cars are not essential goods for survival, unlike food, clothing or shelter. Therefore, this option is not used to determine the poverty line in India. This option is incorrect .❌

  • Option B: By considering the desired calorie requirement - The poverty line in India is not based on the desired calorie requirement of the people but on the actual consumption expenditure of the people. The calorie requirement is only used as a normative criterion to set the initial poverty line, which is then updated over time using price indices. The actual consumption expenditure of the people is estimated by using the sample surveys conducted by the NSSO. This option is incorrect .❌

  • Option C: Using a uniform standard set by international organizations - The poverty line in India is not based on a uniform standard set by international organizations, as it takes into account the specific conditions and needs of the Indian population. However, for comparison purposes, India also reports its poverty estimates based on the international poverty line of $1.90 per person per day (in 2011 PPP terms), which is used by the World Bank to measure extreme poverty across countries. According to this measure, India had 6.7% of its population living in extreme poverty in 2019. This option is incorrect .❌

  • Option D: Through sample surveys conducted by the NSSO - The sample surveys conducted by the NSSO are used to determine the poverty line in India, as they provide data on the consumption expenditure of different groups of people. The NSSO conducts large-scale household surveys on consumption expenditure every five years, which provide data on the quantity and value of various goods and services consumed by different groups of people. These data are then used to calculate the percentage of the population that falls below the poverty line based on their consumption levels. This option is correct .✅

Thus, option (D): Through sample surveys conducted by the NSSO is correct .

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