The Government of India refers to the absolute poverty line in terms of
household savings
household consumption
household investment
household income
Answer is Wrong!
Answer is Right!
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.