Question : The poverty line in India is determined based on:
Option 1: The cost of a standardized food basket
Option 2: The average income of the population
Option 3: The level of education and skills
Option 4: The access to basic amenities like water and sanitation
Correct Answer: The cost of a standardized food basket
Solution : The correct answer is (a) The cost of a standardized food basket
The poverty line in India is primarily determined based on the cost of a standardized food basket, which represents the minimum level of consumption required to meet the basic nutritional needs of individuals or households. The poverty line takes into account the quantity and quality of food items that are essential for sustenance. The calculation of the poverty line also considers other factors such as non-food expenditures on education, healthcare, and other basic needs, but the food component is a crucial element in determining the poverty line. The poverty line methodology in India has evolved over time, taking into consideration various factors and recommendations from expert committees.
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