What was the minimum consumption expenditure (₹ per capita per month) set as a benchmark of the poverty line for rural India in 1979?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 49.09.
In 1979, the Planning Commission of India adopted a method to define the poverty line based on minimum calorie intake and related consumption expenditure. For rural India, the poverty line was calculated using the cost of a diet providing 2,400 calories per person per day, which was considered essential for subsistence in physically demanding rural work conditions.
According to this approach, the minimum consumption expenditure required to meet this caloric intake was estimated at ₹49.09 per capita per month in rural areas. For urban areas, where the calorie norm was 2,100 calories/day, the corresponding figure was slightly higher.
This method laid the foundation for poverty estimation in India for decades, and the 1979 benchmark by the Task Force on Projections of Minimum Needs and Effective Consumption Demand became a reference point for future poverty analysis.