Glossary term
Poverty Line: Meaning and Definition
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
The poverty line is the level of per capita consumption expenditure below which a person is considered poor. In the NCERT book it is based on the money cost of a minimum calorie requirement, 2,400 in rural and 2,100 in urban areas, with a minimum non-food spend. It cannot show how poor people are.
In more detail
A poverty line turns a cut-off into a count of the poor, which lets governments target help and track progress. But the cut-off is chosen by a method that experts debate. Different committees have estimated different lines, so poverty figures from different periods are not always comparable.
Example
In 1999-2000 the line was ₹328 a month for rural and ₹454 for urban areas, so a rural family of five spending under ₹1,640 was below it.
Key points
- Separates the poor from the non-poor.
- Based on expenditure, not income.
- Ignores social factors like illiteracy and discrimination.
Common mistake
Comparing poverty ratios from different methods without noting the change.
Related terms
Where it is explained
This term is explained in Class 11 Indian Economic Development Chapter 4: Poverty.