How is the poverty line determined?

In simple words the poverty line is defined as the per capita expenditure at which the average colorie intake was 2400 calories for a person in rural areas and 2100 calories for urban areas. Most of the studies use data collected by national sample survey organisation on various aspects including consumption expenditure using the calorie norms, age, sex, occupation and region. In 1999-2000, the poverty line was defined for rural areas as consumption worth Rs. 328 per person a month and for urban areas it was Rs. 454.

In 1973-74, more than 321 million poeple were below the poverty line. In 1999-2000, this has come down to about 260 million. In 1973-74, about 55 percent of the total population were below the poverty line. In 1999-2000, it has fallen to 26 percent. In rural areas about 75 percent of the total poor are below the poverty line.