Q. In a given year in India, official poverty lines are higher in some States than in others because

  • poverty rates vary from State to State
  • price levels vary from State to State
  • Gross State Product varies from State to State
  • quality of public distribution varies from State to State

Answer: (b) price levels vary from State to State

Notes:
  • Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can’t be met.
  • According to World Bank, Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
  • In India, 21.9% of the population lives below the national poverty line in 2011.
  • Global MPI 2022: India has the largest number of poor worldwide at 22.8 crore. Also, the incidence of poverty has fallen from 55% in 2005/06 to 16.4% in 2019/21 in India.
  • MPI report by NITI Aayog, 2021: National MPI score of India is 0.118. In India, 25.01% of the population was multidimensionally poor.
  • Poverty lines would vary from State to State because of inter-state price differentials.
  • According to the Planning Commission, in 2011-12 for rural areas, the national poverty line by using the Tendulkar methodology is estimated atRs 816 per capita per month in villages and Rs 1,000 per capita per month in cities.
    • Thus, for a family of five, the all India poverty line in terms of consumption expenditure would amount to about Rs. 4,080 per month in rural areas and Rs. 5,000 per month in urban areas.
  • The poverty line depends on the income profile of the population and on the basis of consumer expenditure.
  • The poverty line is a function of the cost of consumption basket which varies from state to state.
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