Q.What is meant by the poverty line? Briefly describe how it has been estimated in India.
The poverty line is the officially defined minimum level of per-capita income or consumption expenditure considered necessary to satisfy an individual's basic needs. A person below this line is classified as Below Poverty Line (BPL), and one above it as Above Poverty Line (APL).
India's method of estimating the poverty line has changed over time through several expert committees appointed by the Planning Commission:
- The Alagh Committee (1979) based the poverty line on a minimum calorie-intake norm — about 2,400 kcal per person per day in rural areas and 2,100 kcal in urban areas.
- The Lakdawala Committee (1993) retained the calorie basis but adjusted it using state-specific price indices.
- The Tendulkar Committee (2009), using 2011–12 data, moved away from a pure calorie norm to a broader consumption basket including food, education, health, and clothing, estimating the rural poverty line at roughly ₹816 and the urban line at roughly ₹1,000 per capita per month.
- The Rangarajan Committee (2014) recommended a somewhat higher consumption basket, placing the rural line at roughly ₹972 and the urban line at roughly ₹1,407 per capita per month.
Beyond a single income cut-off, India has also adopted the Multidimensional Poverty Index (MPI) through NITI Aayog, which measures deprivation across health, education, and standard-of-living indicators together, rather than income alone.
The poverty line is the minimum per-capita expenditure needed for basic needs. India's estimation method evolved from the Alagh Committee's calorie norm, through Lakdawala and Tendulkar, to the Rangarajan Committee's broader consumption basket, alongside NITI Aayog's more recent Multidimensional Poverty Index.
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.