According to the Planning Commission of India, which of the following are correct for the poverty line? I. Rs 42 per capita per day in urban area II. Rs 26 per capita per day in rural area III. Rs 32 per capita per day in urban area IV. Rs 32 per capita per day in rural area Choose the correct option from the following.

According to the Planning Commission of India, which of the following are correct for the poverty line? I. Rs 42 per capita per day in urban area II. Rs 26 per capita per day in rural area III. Rs 32 per capita per day in urban area IV. Rs 32 per capita per day in rural area Choose the correct option from the following. Correct Answer II and III

The correct answer is II and III.

Key Points

• Poverty line:
  • Planning Commission quantifies Calorific/Nutritional needs for a basic minimum living by taking an ideal ‘poverty line basket’.
  • This ideal basket includes food and nonfood items which are recommended by expert groups (among other things) which are constituted from time to time.
  • So we’ll have a monetary figure (Rs16/25/32 etc.) which that expert panel considers benchmark poverty line.
  • Then this poverty line is adopted by Planning Commission.
  • For the determination of this figure, reliance is obviously placed on data provided by NSSO.
  • The poverty line is a cutoff point on the line of distribution, which usually divides the population of the country as poor & non-poor.
  • People having income below the poverty line are called poor.