Describe how the poverty line is estimated in India.
A person is considered poor if his or her income or
consumption level falls below a given minimum level necessary
to fulfil basic needs. Each country uses an
imaginary line that is considered appropriate for its existing
level of development and its accepted minimum social norms. This
is called the poverty line.
While determining the poverty line in India, a minimum level of
food requirement, clothing, footwear, fuel and light, educational
and medical requirements, etc., are determined for subsistence.
These physical quantities are multiplied by their prices in
rupees, and thereby the poverty line is arrived at. The numbers
involved in the calculation of the poverty line vary. Since the
economics of living in the rural parts of the country is
different from that of living in the urban parts, the poverty
line deducted for individuals living in the rural areas is
different from that deducted for individuals living in the urban
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