Question : The poverty line in India is determined based on:
Option 1: Per capita income
Option 2: Household income
Option 3: Monthly expenditure on food
Option 4: None of the above
Correct Answer: Monthly expenditure on food
Solution : The correct answer is (c) Monthly expenditure on food
In India, the poverty line is determined based on a combination of factors. Historically, the poverty line was initially based on the consumption expenditure required to meet basic needs such as food, clothing, and shelter. However, the methodology for determining the poverty line has evolved over time.
The current method used by the Government of India to estimate poverty is based on the consumption expenditure data collected by the National Sample Survey Organization (NSSO). The poverty line is calculated by considering both the expenditure on food and non-food items. The Tendulkar Committee, appointed by the Planning Commission of India, introduced this method in 2005.
So, the poverty line in India is determined based on monthly expenditure on food and non-food items, rather than per capita income or household income alone.
