Explain the two methods to estimate poverty line.



Points to be remembered: 

Answer to be written in the exam:

The two methods used to estimate the poverty line  are:

1. Income method:

  • This method is used to estimate the poverty line with the help of the minimum income required.
  • In the year 2011-12, the poverty line for a person was fixed at Rs 816 per month for rural areas and Rs1000 for urban areas.
  • The higher amount for urban areas has been fixed because of the high prices of many essential products in urban centers.

2. Consumption method:

  • In this method, the average calorie requirement of a person is multiplied by 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.
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Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.