Poverty is a complex phenomenon and cannot be measured by a single variable. Money value denotes the objective standard of poverty measurement but it alone cannot measure the poverty. Before moving on to the section “ measures of poverty ”, let’s us understand the rationale behind the measurement of poverty.
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About one-fourth of Indian population is poor thus it is beneficial to measure poverty due to following reasons:
Let’s now briefly discuss the measures of poverty:
Poverty Ratio (PR) or Head Count Ratio (HCR) is defined as the proportion of poor to the total population. It measures the incidence of poverty and helps to understand whether the poverty is reducing or not.
It is the average of the difference between the income of each individual poor and poverty line. Thus it measures how much money is required to bring every poor person out of poverty in a country.
The various endeavors have been made in India to measure the poverty. Some of these are:
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