Question map
The Government of India refers to the absolute poverty line in terms of
Explanation
In India, the absolute poverty line is traditionally defined based on household consumption expenditure rather than income. This approach is preferred because income in the informal sector is often irregular, whereas consumption patterns remain relatively stable [3]. Historically, the Planning Commission (now NITI Aayog) has utilized data from the National Sample Survey Office (NSSO) to estimate poverty based on Monthly Per Capita Consumption Expenditure (MPCE) [3]. Major expert groups, including the Tendulkar and Rangarajan Committees, defined the poverty line by identifying a minimum expenditure basket required for food and non-food items like clothing, housing, and health [5]. While different committees have used varying methodologies such as the Mixed Reference Period (MRP) or Modified Mixed Reference Period (MMRP), the underlying metric remains the private consumption expenditure of the household [5].
Sources
- [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > INCOME-BASED POVERTY LINE VERSUS CONSUMPTION EXPENDITURE-BASED POVERTY LINE > p. 37
- [2] Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > the indian Poverty line > p. 15
- [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.2 Poverty Estimation in India > p. 255
- [5] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > ESTIMATES AS PER THE 61ST ROUND OF NSSO VERSUS TENDULKAR COMMITTEE ESTIMATES > p. 40
- [4] Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14