The official poverty line in India is based on ______.

Correct option is A

The correct answer is (A) Consumption expenditure of households

Explanation:
• In India, the poverty line is traditionally determined based on the consumption expenditure of households, not income.
• This method uses data from the National Sample Survey Office (NSSO) regarding household consumer expenditure.
• Committees like the Tendulkar Committee and Rangarajan Committee recommended poverty lines based on the Monthly Per Capita Consumption Expenditure (MPCE).
• It assesses the ability of a household to purchase a basket of essential goods and services.

Information Booster:
• NITI Aayog: Currently, NITI Aayog releases the National Multidimensional Poverty Index (MPI), which considers health, education, and standard of living.
• Tendulkar Committee (2009): Moved away from the calorie-anchor method and included expenditure on health and education.
• Calorie Intake: Earlier committees (Alagh, Lakdawala) focused primarily on nutritional requirements (2400 calories for rural, 2100 for urban).

Additional Knowledge:
• Income per household (Option D): While income is a standard measure in developed nations, in India, assessing exact income is difficult due to the large informal sector and seasonal employment. Hence, consumption (what people actually spend) is considered a more reliable proxy for standard of living.
• Assets (Option C): Asset ownership is used in the Socio-Economic Caste Census (SECC) for identifying beneficiaries, but the 'official poverty line' calculation has historically relied on consumption stats.