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Question : Which of the following poverty estimation methods is used by the Planning Commission of India?

Option 1: Headcount Ratio

Option 2: Poverty Gap Index

Option 3: Human Poverty Index

Option 4: Multidimensional Poverty Index


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Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Headcount Ratio


Solution : The correct answer is (a) Headcount Ratio

The Headcount Ratio is a simple measure of poverty that is calculated by dividing the number of people below the poverty line by the total population. The poverty line is the minimum income or consumption level that is necessary to meet basic needs.

The Planning Commission of India has used the Headcount Ratio since the 1970s to estimate poverty in India. The other poverty estimation methods are not used as widely by the Planning Commission.

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