The Government of India refers to the absolute poverty line in terms of
[amp_mcq option1=”household savings” option2=”household consumption” option3=”household investment” option4=”household income” correct=”option2″]
This question was previously asked in
UPSC CAPF – 2013
– This consumption expenditure is estimated based on the cost of a basket of goods and services deemed essential for meeting minimum nutritional requirements and other basic needs (like clothing, shelter, etc.).
– Various expert groups (like Alagh, Lakdawala, Tendulkar, and Rangarajan Committees) have defined poverty lines based on different methodologies, but all have used per capita or household *consumption expenditure* as the primary metric, not income, savings, or investment.
– Income data is often harder to collect accurately, especially in the informal sector, making consumption expenditure a more reliable indicator for poverty measurement in India.