In India, the classification of individuals as below the poverty line is made on the basis of whether they are able to afford a minimum prescribed food basket (option 1). This means that if they cannot afford the basic needs, especially food, they fall below this poverty line.

Option 2, which refers to employment, is incorrect because poverty is not determined solely by employment status, but rather by one`s ability to meet basic needs.

Option 3, about belonging to specific social groups or being an agricultural laborer, is also incorrect because poverty in India is not differentiated by caste, tribe or occupation. Everyone is evaluated on the same standard, i.e. their ability to afford a minimum prescribed food basket.

Option 4, referring to daily wages falling below the prescribed minimum wages, is not the determinant for categorization as below poverty line. Even if a person earns the minimum wage, they might still be able to afford the basic needs and wouldn`t necessarily fall below the poverty line.

Hence, option 1 is the right answer.