Poverty Measurement and Identification — Prelims Strategy

Prelims Strategy

Write the denominator before calculating a ratio. Two poor households among ten households is a household ratio; it is not automatically the share of poor people. For a person headcount, count the persons in the relevant population. Then distinguish crossing the poverty line from changing the depth of deprivation among those who remain below it.

Use simple shortfall examples to test interpretation. A person with 800 units against a hypothetical 1,000-unit line has a 200-unit shortfall, equal to 20 per cent of that line. Dividing by 800 instead answers a different relative-change question. An aggregate gap measure requires its defined population denominator.

For report comparisons, check the survey period rather than merely the publication year. NITI's 2023 report and 2024 discussion paper do not turn estimated 2022–23 values into a direct survey observation. For the World Bank's 2025 international line, retain 2021 PPP; market exchange rates and a domestic programme's eligibility rules are separate concepts.