Following are the methods which are used in calculating the poverty line in India:
1. A minimum level of food requirement, foot-wear, fuel and light, clothing, educational and medical requirements etc. are the basic factors on which the basis poverty line is calculated.
2. While estimating the poverty line, the present formula is based on the desired calorie requirement.
3. In the urban area, the accepted average calorie requirement in India is 2100 calories per person per day and in rural areas, the accepted average calorie requirement is 2400 calorie per person per day.
The calorie requirement of the people in rural areas is higher than that of the people living in urban areas because they do more physical work as compared to urban people.
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