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Q24 (IAS/2019) Economy › Growth, Development, Poverty & Employment › Poverty measurement methods Official Key

In a given year in India, official poverty lines are higher in some States than in others because

Result
Your answer:  ·  Correct: B
Explanation

The correct answer is option B because state-specific poverty lines essentially reflect the differences in the cost of living in different States of the country[3]. Poverty lines are based on state differences in price levels and are updated periodically using a system of state-by-state price indexes, which are estimated separately for rural and urban households[4]. The State with the highest prices has a poverty line which is 57 per cent higher than that for the State with lowest prices[2]. This clearly demonstrates that price level variations across states are the determining factor for differences in official poverty lines. Options A, C, and D are incorrect because poverty lines are not set based on poverty rates, Gross State Product, or quality of public distribution systems, but rather on the basis of state-specific price levels to account for differing costs of living.

Sources
  1. [1] https://www.mospi.gov.in/sites/default/files/publication_reports/saarc_social_charter_status_report.pdf
  2. [2] https://www.mospi.gov.in/sites/default/files/publication_reports/saarc_social_charter_status_report.pdf
  3. [3] https://www.mospi.gov.in/sites/default/files/publication_reports/saarc_social_charter_status_report.pdf
  4. [4] https://www.princeton.edu/~deaton/downloads/deaton_kozel_great_indian_poverty_debate_wbro_2005.pdf
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Q. In a given year in India, official poverty lines are higher in some States than in others because [A] poverty rates vary from State to S…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 7.5/10

This is a 'First Principles' Economy question. It tests if you understand that the Poverty Line is a monetary threshold derived from a consumption basket. If the basket (minimum needs) is standard, the only variable that changes the monetary threshold across regions is the Cost of Living (Price Levels).

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
In India in a given year, are official poverty lines higher in some States because poverty rates vary across States?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Such State specific poverty lines essentially reflect the differences in the cost of living in different States of the country. The State with the highest prices has a poverty line, which is 57 per cent higher than that for the State with lowest prices"
Why this source?
  • Explicitly states India uses State-specific poverty lines and explains why they differ.
  • Shows the primary reason for differences is variation in cost of living across States (not differences in poverty rates).
Web source
Presence: 4/5
"It needs to be highlighted that India is one among very few countries that has identified poverty lines at the sub-national level. The poverty ratios are estimated for different States of the country and have State specific poverty lines for rural and"
Why this source?
  • Notes that poverty lines and poverty ratios are estimated at the sub-national (State) level.
  • Confirms State-specific poverty lines exist for rural and urban areas, implying lines vary across States.
Web source
Presence: 3/5
"different poverty lines than the state- and sector-specific poverty lines of the Planning Commission."
Why this source?
  • Refers to the existence of 'state- and sector-specific poverty lines' used by the Planning Commission.
  • Indicates official practice of having different poverty lines across States (and sectors).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.17 Previous Years Questions > p. 282
Strength: 4/5
“• 1. Which of the following can aid in furthering the Government's objective of inclusive growth? [2011] • (i) Promoting Self-Help Groups• (ii) Promoting Micro, Small and Medium Enterprises• (iii) Implementing the Right to Education Act• Select the correct answer using the codes given below:• (a) (i) only• (b) (i) & (ii) only• (c) (ii) & (iii) only• (d) (i), (ii) & (iii)• 2. In a given year in India, official poverty lines are higher in some States than in others because [2019] • (a) poverty rates vary from State to State• (b) price levels vary from State to State• (c) Gross State Product varies from State to State• (d) quality of public distribution varies from State to State”
Why relevant

Contains the exact multiple‑choice question asking why official poverty lines differ across states, listing 'poverty rates vary' and 'price levels vary' as candidate reasons — showing these are standard hypotheses/patterns considered.

How to extend

A student could take this list of candidate reasons and check state price level (cost of living) data and state poverty estimates to see which correlate with higher official lines.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > 2020 > p. 59
Strength: 4/5
“No question 2019 • 1. In a given year in India, official poverty lines are higher in some States than in others because • (a) Poverty rates vary from state to state • (b) Price levels vary from state to state • (c) Gross state product varies from states to states • (d) Quality of public distribution varies from State to State”
Why relevant

The same MCQ formulation appears again, indicating that variations in poverty rates and in price levels across states are commonly cited factors in official discussions of statewise poverty lines.

How to extend

Use statewise poverty rate tables alongside state price indices to test whether areas with higher poverty rates tend to have higher official poverty lines or whether cost differences explain them.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
Strength: 5/5
“Normally poverty is defned with poverty line. Te poverty line divides the population of the country as poor and non-poor. In India, the poverty line is defned on the basis of private consumption expenditure for buying both food and non-food items. Tus, the poverty line defnes a threshold income. Households earning below this threshold are considered poor. Diferent countries have diferent methods of defning the threshold income depending on local socio-economic needs. In India, the Planning Commission releases the poverty estimates in India.”
Why relevant

Defines the poverty line as based on private consumption expenditure for food and non‑food items and notes methods depend on local socio‑economic needs — implying local price/consumption patterns can affect the poverty line.

How to extend

Combine this rule with state Consumer Price Index (CPI) and typical consumption baskets to infer why some states' official lines might be higher (higher local prices or different consumption norms).

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Table 11.1 (Contd.) > p. 18
Strength: 4/5
“Note: 1. Poverty Ratio of Assam is used for Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. 2. Poverty Line of Maharashtra and expenditure distribution of Goa are used to estimate poverty ratio of Goa. 3. Poverty Line of Himachal Pradesh and Expenditure distribution of Jammu & Kashmir are used to estimate Poverty Ratio of Jammu & Kashmir. 4. Poverty Ratio of Tamil Nadu is used for Pondicherry and Andaman and Nicobar Islands. 5. Urban Poverty Ratio of Punjab is used for both rural and urban poverty of Chandigarh. It may be seen from Table 11.1 that over 57 per cent of the total population of Odisha is below the poverty line followed by Bihar and Jharkhand (54.4%), Chhattisgarh (48.6%) Madhya Pradesh (48.6%), and Uttar Pradesh over (41%).”
Why relevant

Notes that poverty lines or poverty ratios of one state are sometimes used for small/other regions (e.g., 'Poverty Ratio of Assam is used for Arunachal Pradesh'), implying poverty lines are understood as state‑specific measures.

How to extend

A student could map which states have distinct official lines versus those that borrow another state's line and then compare with state poverty/price data to see if distinct lines align with differing poverty/price conditions.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > POVERTY IN INDIA > p. 81
Strength: 4/5
“The spatial patterns of incidences of poverty in India in 2011–12 have been plotted in (Fig. 15.8), while the percentages of poverty in different states are given in (Table 15.1). It may be seen from (Table 15.1) that acute poverty prevails in Odisha (57.0%), Bihar (54.4%), and Jharkhand (45.3%). The percentage of poverty is 5.4% in Jammu & Kashmir, Punjab 8.4%, Himachal Pradesh 10.0% Mizoram 12.6%, Goa 13.8%, Haryana 14% and Kerala 15%. The low incidence of poverty in the given states are mainly because of high literacy rate, agricultural and industrial development. The incidence of poverty is higher than the national average (27.5%) in the states of Odisha, Bihar Jharkhand, Chhattisgarh, Madhya Pradesh, Maharashtra,Uttarakhand, and Uttar Pradesh.”
Why relevant

Provides concrete statewise poverty percentages showing large inter‑state variation (e.g., Odisha 57.0%, Punjab 8.4%), demonstrating that poverty rates do vary markedly across states.

How to extend

Using these state poverty rates plus knowledge of which states report higher official poverty lines, a student could check whether higher official lines coincide with higher measured poverty or instead track with prices.

Statement 2
In India in a given year, are official poverty lines higher in some States because price levels vary across States?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"poverty lines, based on state differences in price levels, come from the report of an expert group ... The poverty lines are updated periodically using a system of state-by-state price indexes, which are estimated separately for rural households ... and urban households ..."
Why this source?
  • Directly states that poverty lines are based on state differences in price levels.
  • Explains official procedure: poverty lines are updated using state-by-state price indexes (separately for rural and urban).
Web source
Presence: 4/5
"The state by state urban and rural poverty lines were calculated independently, without consideration of the implicit urban to rural price differentials. In any case, the average ratio of urban to rural poverty lines is around 1.4 and varies widely across states. In Round 50 (1993/94) it is more than 1.7 in Andhra Pradesh ..."
Why this source?
  • Shows that state-by-state urban and rural poverty lines were calculated independently, producing large variation across states.
  • Gives quantitative evidence that the ratio of urban to rural poverty lines varies widely (average ~1.4; >1.7 in some states), consistent with state-level price differences driving different official lines.
Web source
Presence: 3/5
"As a result, official headcount measures of poverty are higher in urban than in rural areas in some states ... In Andhra Pradesh, ... the 1999/2000 official estimates give a poverty rate of 27.2 percent for urban areas and only 10.8 percent for rural areas."
Why this source?
  • Documents that official headcount measures differ across states and between urban and rural areas.
  • Provides an example (Andhra Pradesh) where official urban poverty is much higher than rural, consistent with differing state/area poverty lines driven by price/measurement differences.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > 2020 > p. 59
Strength: 4/5
“No question 2019 • 1. In a given year in India, official poverty lines are higher in some States than in others because • (a) Poverty rates vary from state to state • (b) Price levels vary from state to state • (c) Gross state product varies from states to states • (d) Quality of public distribution varies from State to State”
Why relevant

This exam-style item lists 'price levels vary from state to state' as a possible reason why official poverty lines differ across states, indicating this is a recognised factor to consider.

How to extend

A student could combine this prompt with data on state-wise price indices to check whether states with higher price levels have higher official poverty lines.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.17 Previous Years Questions > p. 282
Strength: 4/5
“• 1. Which of the following can aid in furthering the Government's objective of inclusive growth? [2011] • (i) Promoting Self-Help Groups• (ii) Promoting Micro, Small and Medium Enterprises• (iii) Implementing the Right to Education Act• Select the correct answer using the codes given below:• (a) (i) only• (b) (i) & (ii) only• (c) (ii) & (iii) only• (d) (i), (ii) & (iii)• 2. In a given year in India, official poverty lines are higher in some States than in others because [2019] • (a) poverty rates vary from State to State• (b) price levels vary from State to State• (c) Gross State Product varies from State to State• (d) quality of public distribution varies from State to State”
Why relevant

A second source repeats the same multiple-choice formulation, again naming inter‑state price variation as a candidate explanation for differing poverty lines.

How to extend

Use consumer price index or state CPI data alongside official state poverty thresholds to test for correlation.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > the indian Poverty line > p. 15
Strength: 5/5
“In 2011, the Suresh Tendulkar Committee defned the poverty line on the basis of monthly spending on food, clothing, housing, education, health, electricity and transport. According to one estimate in 2014, a person who spends ` 30.50p in rural areas and ` 46.25p in urban areas a day is defned as living below the poverty line. Te Planning Commission of India made an estimate of poverty line in July 2014. As per the latest available information, the poverty line at all India level for 2013-2014 is estimated at a monthly per capita consumption expenditure (MPCE) of ` 1927 per month for rural areas and ` 1407 for urban areas.”
Why relevant

Explains that the Tendulkar poverty line is defined by monthly spending on food and non‑food items and gives different rural/urban MPCE values, showing poverty lines are based on consumption costs.

How to extend

Apply the same logic to states: if poverty lines are consumption‑based, then higher local price levels would raise the nominal MPCE threshold in those states.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
Strength: 4/5
“Normally poverty is defned with poverty line. Te poverty line divides the population of the country as poor and non-poor. In India, the poverty line is defned on the basis of private consumption expenditure for buying both food and non-food items. Tus, the poverty line defnes a threshold income. Households earning below this threshold are considered poor. Diferent countries have diferent methods of defning the threshold income depending on local socio-economic needs. In India, the Planning Commission releases the poverty estimates in India.”
Why relevant

States the poverty line is defined on the basis of private consumption expenditure for buying food and non‑food items, i.e., a threshold consumption expenditure.

How to extend

A student could reason that because the threshold is an expenditure amount, regional price differences affecting expenditure needs could make nominal poverty lines differ by state.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > Pre-Independence Estimates > p. 37
Strength: 3/5
“• The first estimate of poverty was made by Shri Dadabhai Naoroji in his book Poverty and the Unbritish Rule in India. He computed subsistence based on poverty line ranging from ₹16 to ₹35 per capita per year at 1867-68 prices.• He never used the word 'poverty line' but instead used 'subsistence-based poverty line'.• Later in 1938, the National Planning Committee (headed by Shri J.L. Nehru) regarded an irreducible minimum income between ₹15 and ₹25 per capita per month at pre-war prices.”
Why relevant

Historical poverty lines are explicitly given 'at 1867-68 prices' or 'pre-war prices', showing that poverty thresholds have been tied to price levels historically.

How to extend

This suggests a general rule that poverty lines move with price levels; a student can extend this to modern state price differences to hypothesize higher nominal lines where prices are higher.

Statement 3
In India in a given year, are official poverty lines higher in some States because Gross State Product varies across States?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Such State specific poverty lines essentially reflect the differences in the cost of living in different States of the country. The State with the highest prices has a poverty line, which is 57 per cent higher than that for the State with lowest prices"
Why this source?
  • Explicitly states that state-specific poverty lines reflect differences in cost of living across states.
  • Gives magnitudes showing poverty lines vary with local prices (e.g., 57% higher in the highest-price state).
Web source
Presence: 4/5
"The state by state urban and rural poverty lines were calculated independently, without consideration of the implicit urban to rural price differentials. In any case, the average ratio of urban to rural poverty lines is around 1.4 and varies widely across states."
Why this source?
  • Notes that state-by-state urban and rural poverty lines were calculated independently and that price indexes used produced wide variation.
  • Reports that the average ratio of urban to rural poverty lines is around 1.4 and varies widely across states, linking variation to price/indexing issues rather than output measures.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > 2020 > p. 59
Strength: 4/5
“No question 2019 • 1. In a given year in India, official poverty lines are higher in some States than in others because • (a) Poverty rates vary from state to state • (b) Price levels vary from state to state • (c) Gross state product varies from states to states • (d) Quality of public distribution varies from State to State”
Why relevant

This textbook MCQ explicitly lists 'Gross State Product varies from states to states' as one of the candidate reasons why official poverty lines might be higher in some states.

How to extend

A student could note that textbooks consider GSP a plausible factor and then check whether official poverty line-setting formulas use income/GSP indicators across states.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.17 Previous Years Questions > p. 282
Strength: 4/5
“• 1. Which of the following can aid in furthering the Government's objective of inclusive growth? [2011] • (i) Promoting Self-Help Groups• (ii) Promoting Micro, Small and Medium Enterprises• (iii) Implementing the Right to Education Act• Select the correct answer using the codes given below:• (a) (i) only• (b) (i) & (ii) only• (c) (ii) & (iii) only• (d) (i), (ii) & (iii)• 2. In a given year in India, official poverty lines are higher in some States than in others because [2019] • (a) poverty rates vary from State to State• (b) price levels vary from State to State• (c) Gross State Product varies from State to State• (d) quality of public distribution varies from State to State”
Why relevant

The same question appears in another textbook edition, again presenting GSP variation as a possible explanation for different state poverty lines.

How to extend

Treat this repeated inclusion as a clue to investigate official methodology documents to see if state income levels (GSP) enter the poverty-line determination.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
Strength: 5/5
“Normally poverty is defned with poverty line. Te poverty line divides the population of the country as poor and non-poor. In India, the poverty line is defned on the basis of private consumption expenditure for buying both food and non-food items. Tus, the poverty line defnes a threshold income. Households earning below this threshold are considered poor. Diferent countries have diferent methods of defning the threshold income depending on local socio-economic needs. In India, the Planning Commission releases the poverty estimates in India.”
Why relevant

Defines India's poverty line as based on private consumption expenditure (a threshold of income/expenditure) rather than directly on poverty rates or public distribution quality.

How to extend

Combine this with the idea that higher state GSP generally implies higher average incomes and potentially higher local consumption norms/prices, which could lead authorities to set higher nominal poverty thresholds in richer states.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > POVERTY IN INDIA > p. 81
Strength: 3/5
“The spatial patterns of incidences of poverty in India in 2011–12 have been plotted in (Fig. 15.8), while the percentages of poverty in different states are given in (Table 15.1). It may be seen from (Table 15.1) that acute poverty prevails in Odisha (57.0%), Bihar (54.4%), and Jharkhand (45.3%). The percentage of poverty is 5.4% in Jammu & Kashmir, Punjab 8.4%, Himachal Pradesh 10.0% Mizoram 12.6%, Goa 13.8%, Haryana 14% and Kerala 15%. The low incidence of poverty in the given states are mainly because of high literacy rate, agricultural and industrial development. The incidence of poverty is higher than the national average (27.5%) in the states of Odisha, Bihar Jharkhand, Chhattisgarh, Madhya Pradesh, Maharashtra,Uttarakhand, and Uttar Pradesh.”
Why relevant

Notes inter-state differences in poverty incidence and links low poverty incidence to 'agricultural and industrial development' (i.e., economic development factors related to state output).

How to extend

A student could use the link between state-level development (which correlates with GSP) and poverty patterns to hypothesize that measures tied to local economic conditions (including poverty lines) might also vary with GSP.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > incidence of Poverty in india > p. 17
Strength: 3/5
“On the basis of NSS data, various estimates of the extent of poverty have been made by diferent scholars. Among those who estimated the level of poverty in India, the names of B.S. Minhas, V.N. Dandakar and N.Rath, P.K. Bardhan, M.S. Ahulwalia and the Planning Commission of India are noteworthy. About 26 per cent of the total population of India is below the poverty line. Te state-wise variations in the levels of poverty have been plotted in Fig.11.2. (Table 11.1).”
Why relevant

States that various scholars and agencies produce state-wise poverty estimates, and that 'state-wise variations' are routinely plotted, implying official/state-level differentiation in poverty measurement.

How to extend

Use this as a prompt to compare methodologies of different estimating bodies (Planning Commission, NSS) to see if they adjust poverty lines by state economic indicators such as GSP.

Statement 4
In India in a given year, are official poverty lines higher in some States because the quality of public distribution systems varies across States?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > 2020 > p. 59
Strength: 4/5
“No question 2019 • 1. In a given year in India, official poverty lines are higher in some States than in others because • (a) Poverty rates vary from state to state • (b) Price levels vary from state to state • (c) Gross state product varies from states to states • (d) Quality of public distribution varies from State to State”
Why relevant

This MCQ lists 'price levels vary from state to state' and 'quality of public distribution varies from State to State' as candidate reasons for differences in official poverty lines, showing these factors are considered relevant in official/question contexts.

How to extend

A student could combine this with data on state PDS performance to see if poorer PDS correlates with higher local price burdens and thus higher poverty-line thresholds.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.17 Previous Years Questions > p. 282
Strength: 4/5
“• 1. Which of the following can aid in furthering the Government's objective of inclusive growth? [2011] • (i) Promoting Self-Help Groups• (ii) Promoting Micro, Small and Medium Enterprises• (iii) Implementing the Right to Education Act• Select the correct answer using the codes given below:• (a) (i) only• (b) (i) & (ii) only• (c) (ii) & (iii) only• (d) (i), (ii) & (iii)• 2. In a given year in India, official poverty lines are higher in some States than in others because [2019] • (a) poverty rates vary from State to State• (b) price levels vary from State to State• (c) Gross State Product varies from State to State• (d) quality of public distribution varies from State to State”
Why relevant

Another presentation of the same MCQ (2019) again groups quality of public distribution with state-level price and poverty variation as possible causes of differing poverty lines.

How to extend

Use this to justify investigating whether variations in PDS (which affect real food prices for the poor) map onto variations in official poverty-line levels across states.

Economics, Class IX . NCERT(Revised ed 2025) > Chapter 4: Food Security in India > The National Food Security Act, 2013 > p. 49
Strength: 5/5
“In 1992, Revamped Public Distribution System (RPDS) was introducted in 1,700 blocks in the country. The target was to provide the benefits of PDS to remote and backward areas. From June 1997, in a renewed attempt, Targeted Public Distribution System (TPDS) was introducted to adopt the principle of targeting the 'poor in all areas'. It was for the first time that a differential price policy was adopted for poor and nonpoor. Further, in 2000, two special schemes were launched viz., Antyodaya Anna Yojana*** (AAY) and Annapurna Scheme (APS) with special target groups Note: W - Wheat; R - Rice; BPL - Below poverty line; APL - Above poverty line Source: Food Corporation of India, fci.gov.in/sales.php-view-41,2021 (updated on 29.09.2021) National Food Security Act, 2013”
Why relevant

Explains that TPDS introduced differential pricing for poor and non-poor and that public distribution schemes target food access—showing PDS directly affects the prices/food availability faced by poor households.

How to extend

A student can infer that differences in PDS reach/pricing by state could change effective consumption costs used to set poverty lines, so comparing PDS coverage/prices across states would test the statement.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
Strength: 5/5
“Normally poverty is defned with poverty line. Te poverty line divides the population of the country as poor and non-poor. In India, the poverty line is defned on the basis of private consumption expenditure for buying both food and non-food items. Tus, the poverty line defnes a threshold income. Households earning below this threshold are considered poor. Diferent countries have diferent methods of defning the threshold income depending on local socio-economic needs. In India, the Planning Commission releases the poverty estimates in India.”
Why relevant

Defines poverty line as based on private consumption expenditure for food and non-food items, i.e., a price-weighted consumption threshold.

How to extend

Combine this with state-level differences in food prices or PDS subsidised supplies to argue that variations in PDS (affecting out-of-pocket food costs) could influence state poverty-line levels.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Table 11.1 (Contd.) > p. 18
Strength: 3/5
“Note: 1. Poverty Ratio of Assam is used for Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. 2. Poverty Line of Maharashtra and expenditure distribution of Goa are used to estimate poverty ratio of Goa. 3. Poverty Line of Himachal Pradesh and Expenditure distribution of Jammu & Kashmir are used to estimate Poverty Ratio of Jammu & Kashmir. 4. Poverty Ratio of Tamil Nadu is used for Pondicherry and Andaman and Nicobar Islands. 5. Urban Poverty Ratio of Punjab is used for both rural and urban poverty of Chandigarh. It may be seen from Table 11.1 that over 57 per cent of the total population of Odisha is below the poverty line followed by Bihar and Jharkhand (54.4%), Chhattisgarh (48.6%) Madhya Pradesh (48.6%), and Uttar Pradesh over (41%).”
Why relevant

Notes methodological practice of borrowing poverty lines or expenditure distributions across states (using one state's poverty line for another), implying state-level price/expenditure differences are material and sometimes adjusted for.

How to extend

A student could use this to argue that if states differ enough in PDS quality/price impact, statisticians adjust or substitute lines—so checking where substitutions occur might reveal PDS-related differences affecting poverty lines.

Pattern takeaway: UPSC Economy questions often masquerade as complex data interpretation but are actually testing basic definitions. They don't ask 'What is the rate?' (Data), they ask 'Why is the line different?' (Methodology).
How you should have studied
  1. [THE VERDICT]: Sitter. Covered in NCERT Class IX (Economics, Ch. 3) and every standard Economy manual (Singh/Singhania) under Poverty Estimation.
  2. [THE CONCEPTUAL TRIGGER]: Poverty Estimation Methodology (Lakdawala vs Tendulkar vs Rangarajan Committees).
  3. [THE HORIZONTAL EXPANSION]: 1. **Tendulkar Committee**: Shifted from calorie anchor to nutritional outcomes; used Mixed Reference Period (MRP). 2. **Rangarajan**: Reverted to separate baskets for rural/urban; higher lines than Tendulkar. 3. **Indices used**: Historically, CPI-AL (Rural) and CPI-IW (Urban) were used to update lines. 4. **NITI Aayog MPI**: Now the focus for policy targeting (Health, Education, SoL) rather than income lines. 5. **Data Source**: NSSO Household Consumption Expenditure Survey (HCES) is the basis, not GSP data.
  4. [THE STRATEGIC METACOGNITION]: When studying metrics (CPI, Poverty Line), always deconstruct the formula. If the Poverty Line is ₹1000 in Urban and ₹816 in Rural, the difference isn't because urban people eat more, but because urban *prices* are higher. Apply this logic to States.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Inter‑state variation in poverty incidence
💡 The insight

Poverty proportions differ markedly across Indian states, so any question about statewise poverty must begin with recognising these regional disparities.

High‑yield for UPSC because regional poverty patterns inform policy debates on targeted welfare, federal fiscal transfers, and development planning. Mastering this helps answer questions on spatial inequality, programme targeting (e.g., MGNREGA, PDS), and state performance comparisons.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > POVERTY IN INDIA > p. 81
  • Economics, Class IX . NCERT(Revised ed 2025) > Chapter 3: Poverty as a Challenge > Inter-State Disparities > p. 34
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
📌 Adjacent topic to master
S1
👉 Consumption‑based definition of the poverty line
💡 The insight

The poverty line in India is defined as a consumption expenditure threshold for basic food and non‑food needs, which determines who is classified as poor.

Important for questions on measurement and methodology of poverty, design of anti‑poverty schemes, and critiques of official statistics. Understanding this concept enables evaluation of why poverty estimates change with price or consumption surveys and supports arguments on measurement reform.

📚 Reading List :
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > incidence of Poverty in india > p. 17
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
📌 Adjacent topic to master
S1
👉 Use of proxy data for small regions and estimation limitations
💡 The insight

When direct expenditure or poverty data are unavailable for certain territories, statisticians use another state's poverty ratio or expenditure distribution as a proxy for estimation.

Useful for UPSC answers on statistical methods, data quality and limitations, and the implications of estimation choices for policy. Knowing this prepares aspirants to critique official figures, discuss reliability of sub‑national estimates, and suggest improvements in data collection.

📚 Reading List :
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Table 11.1 (Contd.) > p. 18
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
📌 Adjacent topic to master
S2
👉 Poverty line as MPCE-based consumption threshold
💡 The insight

The poverty line is defined as a monthly per‑capita consumption expenditure threshold that covers food and non‑food needs.

High-yield for UPSC: understanding how the poverty line is constructed (MPCE basis) is essential for interpreting poverty estimates, comparing measures across time, and assessing policy impacts. It links to national accounts, survey measurement, and welfare policy questions.

📚 Reading List :
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > the indian Poverty line > p. 15
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
📌 Adjacent topic to master
S2
👉 Inter‑regional (state‑level) variation in poverty incidence
💡 The insight

Headcount ratios and poverty percentages differ across regions, demonstrating uneven distribution of poverty.

Important for questions on regional development and policy prioritisation; helps answer why targeted interventions differ and connects to topics like human development, fiscal devolution, and regional planning.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > POVERTY IN INDIA > p. 81
  • Economics, Class IX . NCERT(Revised ed 2025) > Chapter 3: Poverty as a Challenge > Inter-State Disparities > p. 34
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > incidence of Poverty in india > p. 17
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
📌 Adjacent topic to master
S2
👉 Rural–urban differentiation in poverty thresholds
💡 The insight

Official poverty thresholds differ for rural and urban areas, with distinct daily/MPCE figures for each.

Useful for analysing intra‑country heterogeneity in poverty measurement and programme design (urban vs rural schemes); often tested in questions about implementation and measurement of poverty.

📚 Reading List :
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > the indian Poverty line > p. 15
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
📌 Adjacent topic to master
S3
👉 Poverty line definition & role of price levels
💡 The insight

The poverty line is a consumption-expenditure threshold and is affected by local cost of living.

High-yield: questions often test how poverty is measured and why thresholds differ regionally; links to inflation, cost-of-living adjustments, and policy targeting; enables answering items on why poverty lines vary across areas (e.g., price-level differences versus income/GDP).

📚 Reading List :
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 11: Contemporary Socio-Economic Issues > Poverty line > p. 14
🔗 Anchor: "In India in a given year, are official poverty lines higher in some States becau..."
🌑 The Hidden Trap

The distinction between URP (Uniform Reference Period - 30 days) and MRP (Mixed Reference Period - 365 days for durables). Future Q: 'Which method yields a lower poverty estimate?' (MRP usually yields lower poverty rates as it captures infrequent high-value spending better).

⚡ Elimination Cheat Code

Dimensional Analysis. The 'Poverty Line' is expressed in Rupees (Currency). Option A (Rates) is a percentage. Option C (GSP) is a macro-aggregate. Option D (Quality) is qualitative. Only Option B (Price Levels) directly explains why the *monetary value* of a fixed basket changes ($Cost = Price \times Quantity$).

🔗 Mains Connection

GS-2 (Welfare Schemes): The shift from 'Poverty Line' (Income-based) to **SECC 2011 (Deprivation-based)** for beneficiary identification (e.g., PMAY, Ayushman Bharat). The official poverty line is now largely statistical; the *operational* line is deprivation-based.

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SIMILAR QUESTIONS

CAPF · 2013 · Q98 Relevance score: 0.18

The Government of India refers to the absolute poverty line in terms of

IAS · 1999 · Q10 Relevance score: -0.05

Persons below the poverty line in India are classified as such based on whether

IAS · 1996 · Q70 Relevance score: -1.67

Assertion (A) : Though India’s national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level. Reason (R) : Sizeable proportion of the population of India is still living below the poverty line. In the context of the above two statements which one of the following is correct ?

IAS · 1999 · Q12 Relevance score: -3.94

Consider the following statements : Regional disparities in India are high and have been rising in recent years because I. there is persistent investment over time only in select locales. II. some areas are agro-climatically less conducive to development. III. some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities. IV. some areas have faced continuous political instability. Which of the above statements are correct ?

CDS-II · 2018 · Q72 Relevance score: -4.15

Statement I : The overall fiscal deficit of the States in India during 2017-2018 stayed above the FRBM threshold level of 3 percent for the third successive year. Statement I : Special Category States had run up a higher level of fiscal deficit in 2017-2018 compared to 2016-2017.