In India ** line is measured or calculated considering the following factors required for subsistence:
1. Minimum level of food requirement,
2. Clothing
3. Footwear
4. Fuel and Light
5. Education and
6. Medical requirement etc.
These physical quantities are multiplied by their prices. The present formula for food requirement is based on the desired calorie requirement. On the basis of these calculations in 1999 – 2000, the ** line in the rural areas was fixed Rs.328 per capita per month and in urban areas, it was Rs.454. People earning more than this amount were considered above the ** line and earning less than this amount were considered as living below the ** line.
