Question : Which of the following poverty estimation methods is used by the Planning Commission of India?
Option 1: Headcount Ratio
Option 2: Poverty Gap Index
Option 3: Human Poverty Index
Option 4: Multidimensional Poverty Index
Correct Answer: Headcount Ratio
Solution : The correct answer is (a) Headcount Ratio
The Headcount Ratio is a simple measure of poverty that is calculated by dividing the number of people below the poverty line by the total population. The poverty line is the minimum income or consumption level that is necessary to meet basic needs.
The Planning Commission of India has used the Headcount Ratio since the 1970s to estimate poverty in India. The other poverty estimation methods are not used as widely by the Planning Commission.
