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    Poverty level in India is estimated on the basis of:
    Question

    Poverty level in India is estimated on the basis of:

    A.

    Per capita income in different States

    B.

    Household average income

    C.

    Household consumer expenditure

    D.

    Slum population in the country

    Correct option is C

    In India, poverty levels are primarily estimated based on household consumer expenditure. This refers to the amount of money households spend on goods and services, and it serves as an indicator of the standard of living and access to basic necessities. The Planning Commission (now NITI Aayog) has historically used consumption data collected through National Sample Surveys (NSSO) to determine the poverty line. Households that spend less than a certain threshold on food, clothing, housing, and other essentials are considered to be living below the poverty line (BPL). This approach provides a more realistic measure of poverty compared to per capita income, as it accounts for actual spending patterns. The poverty estimates are used to formulate policies for poverty alleviation and targeting welfare schemes.

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