ii. Limitations of poverty line estimation
However, the poverty line approach also has several limitations:
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Inadequate measurement |
It is based on a consumption-based approach, hence may not capture all aspects of poverty, such as access to healthcare, education, and other social services. |
|
PLB components |
Determining components of PLB has been one of the challenges due to price differentials (of constituents of basket) which vary from state to state and period to period. |
|
Limited coverage |
It only covers those households who fall below the poverty line, leaving out households who are just above the poverty line but still face significant challenges in meeting their basic needs. |
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Lack of regional variation |
Since it is based on a national average, which may not reflect the differences in the cost of living and poverty levels across different regions in India. |
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Lack of consideration for vulnerability |
It does not take into account vulnerable groups, such as women, children, and the elderly, who may face additional challenges in meeting their basic needs. |