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Introduction.
The term Poverty is basically used to refer to a situation whereby individuals in a given
geographical location are deprived of the necessary basic needs of life. Poverty is mainly
associated with the lack of enough shelter, clothes, and food. Poverty can, therefore, be described
as the scarcity of the essential or necessary needs of life which ensures human survival.
Research has proven that India, which is a developing country is among the list of the poorest
countries worldwide. The poverty level in India has elevated to significant levels which can be
revealed by the fact that most of the Indians do not get enough meals for their upkeep, their
houses are of low quality and also the most of the Indian children do not get access to proper
education. The health care facilities in most parts of India are also of low quality and even there
is an absence of this facility in some areas. This, therefore, has increased the mortality rate of the
Indian infants and adults. Poverty in India has generally reduced the country’s gross domestic
product and the per capita income due to the emergency of economic issues associated with
poverty like increased level of unemployment, budget deficits and reduced levels of investment
and savings.
The issue of poverty in India is a matter of significant concern to the India government since
even after sixty-five years of the country’s independence, the Poor group of people has not
effectively improved their standards since they still don’t get the required nutrition and diet
among the other life necessities. These makes this person feel depressed and belonging to the
deprived or the poor class.

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How poverty is measured in India.
India is known to have a very long history of studies on how to measure the poverty levels of the
different geographical parts of the country. Poverty measurement is categorized into either
Absolute or relative poverty. These, therefore, implies that in measuring poverty, it can either be
absolute or relative. Absolute poverty generally refers to the extreme levels of poverty which can
be characterized by the severe and serious scarcity of basic life necessities which may include
food, safe drinking water, and shelter and health facilities. Relative poverty, on the other hand,
refers to the situation whereby people in a particular country lack the minimum required level of
income to maintain them within the average welfare standard of living in the country.
In June 2012, the India government became more interested in determining the right
methodology to be adopted in measuring the level of poverty in the nation and therefore it
appointed a group of experts which was led by C. Rangarajan. This expert group based its
research on determining both the absolute and relative levels of poverty by separating the
poverty line groups for the urban and the rural areas of India. The group used both the economic
and social measures of poverty to determine the poverty levels of both the urban and the rural
areas of the country. The economic measures of poverty used include availability and access to
the required material needs which basically refers to the life necessities like food, shelter, water
which is safe for drinking and clothing. The economic measures of income used by this group
also included the levels of income and the amount of wealth accumulated by different groups of
Indian citizens. The social measures of poverty used by this expert group to measure the
country’s poverty levels included access to all necessary information required by different people
in different parts of the country, quality of education, availability and access to health care
facilities and the access and equality in the functioning of the political power within the country.

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These economic and social factors can, therefore, be used to set the poverty line levels of both
the rural and the urban citizens of India over time.
It is important to note that both the relative and absolute the measurement of poverty levels of
the Indians is generally based on the individual’s annual income and does not most often take
into consideration of the total wealth. This is although seen to avoid a key component which is
the economic well-being of all the citizens. The poverty of the country has therefore been
measured based on the available consumption estimates. The main reasons for using these
poverty estimates in relation to consumption includes the fact that many people usually think that
to be either rich or poor is associated with the prevailing income levels. The several available
non-income indicators of the level of poverty in the country are in fact clear images of
inadequate income. The second reason is the fact that the historical number of individuals
identified to be poor based on the successive below poverty line censuses in the marginalized
areas has widely differed from the measured poverty. Since the censuses are conducted on
households that consist of both non-poor and the poor, the concept of using the consumption
estimates of these households becomes more fitting for measuring the poverty level of the
country. The last reason is due to the fact that the deprivation criteria by the individual
households do not reflect the exact level of poverty and therefore an effective judgment has to be
made so as come up with a clear conclusion as to whether the number of deprivations considered
together can clearly indicate the measure of poverty. These, therefore, calls for the use of the
consumption estimates to avoid subjectivity which might arise in the poverty measurement.

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The level of poverty in India.
The India government came up with a key objective of reducing the level of poverty soon after
the country gained independence. These made the government to spent more expenditure in each
and every plan executed with the intention of alleviating poverty but yet almost a quarter of the
India population remained below the poverty line. (Alkire, Sabina, and Seth, 2015).
The percentage of poverty in the country declined from 49% in the year 1973-74 to 26% in
1999-2000. It later reduced to 21% according to the Economic Survey conducted during the year
2008 due to the overall decrease in the percentage of poverty in both rural and urban parts of the
country.
The recent research has shown that an estimate of 29.8% of the population of Indian citizens are
living below the poverty line whereby they spent an estimate of $1.25 per day on purchasing
power parity. These imply that approximately 360 million citizens of India are living in poverty.
It is important to note that the most recent research has shown that these estimate of the
percentage of people living in poverty is likely to be much higher due to the insufficient
prevailing economic conditions of the country’s economy.

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Poverty level ...