Question

How is poverty measured?

Answer 1

Poverty is measured by determining a poverty line, which is the per capita consumption expenditure required to meet minimum calorie needs and essential non-food requirements. In India, the poverty line is based on the daily calorie consumption norms of 2,400 calories for rural areas and 2,100 calories for urban areas. The Monthly Per Capita Expenditure (MPCE) that meets these calorie needs and other expenses is used as the poverty line. People with consumption below this line are considered poor. Surveys by the National Sample Survey Office (NSSO) estimate the number of poor using this criterion.