BPL - Below Poverty Line: Complete Guide

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The Below Poverty Line (BPL) is a framework in India that sets the standard to identify the people who are surviving and living in extreme poverty. This helps to identify the people who need attention and access to various government schemes and provisions, ensuring fundamental needs such as food, healthcare, housing, and education. The classification is done through criteria that assess income, consumption, and other economic indicators.

The BPL is not just a measure but a tool to identify and address the vulnerabilities faced by the disadvantaged population. It enables the government to distribute resources efficiently and implement policies towards the betterment of life of these impoverished parts of society.

Table of Contents

What is BPL?

“Below Poverty Line” is an economic standard in India that is used to identify the population living in severe poverty and the households in need of government aid. It aims to address the basic requirements of people’s food, healthcare, and education. It also acts as a guideline for determining the eligibility for government schemes and welfare programs. The most important role of BPL in India is that it acts as a tool in the policy-making process and resource distribution to improve the standards of living of the poor.

BPL Full Form and Meaning in India

The full form of BPL is “Below Poverty Line,” which is an economic indicator used in India to identify households that cannot afford essential necessities such as food, healthcare, and education. It is used to formulate and implement economic policies aimed at alleviating poverty in the country. The BPL classification helps India’s economic landscape to prioritise the distribution of subsidies and other benefits for food, shelter, healthcare, and education. By addressing poverty at its root, BPL helps to shape the policies aimed at inclusive growth and equitable development.

History of “Below Poverty Line” in India

In India, the concept of the Below-Poverty Line (BPL) has evolved over the decades as the country makes efforts to improve and combat poverty. The history of BPL in India started as early as the post-independence era, during which poverty was identified as a problem for socio-economic development.

1. Pre-Independence Context:

Poverty measurement in India began with colonial assessment. Dadabhai Naoroji estimated the poverty line to be between ₹16 to ₹35 per head annually. The poverty line was estimated to be between ₹15 and ₹20 per capita per month in 1938 by the National Planning Committee. However, any systematic framework was not there during this period.

2. The Planning Era(1962):

A Planning Commission was made in this era that introduced the “poverty line”. The planning commission set the poverty line at ₹20 per capita annually for rural areas and ₹25 per capita per year for urban areas based on minimum nutrition requirements.

3. Dhandekar and Rath Report (1971):

VM Dhandekar and N Nath used the National Sample Survey(NSS) from 1960-1961 to assess the poverty line in India. They emphasised the need for a consumption-based poverty line that focuses on calorie intake. The argument was that the poverty line should be set to provide 2,250 calories per day.

4. Alagh Committee (1979):

The Planning Commission constituted a task force under the direction of YK Alagh. It used the nutrition requirement and consumption costs to determine the poverty line for rural and urban areas in India. The main recommendations of the committee were that the poverty line should be based on average consumption expenditure per person and adjust the price level according to inflation to estimate poverty in future years.

5. Lakdawala Committee (1993):

The Lakdawala Committee made some assumptions and based their findings on it. These assumptions that reflected the poor’s consumption pattern were that the basket used to construct the Consumer Price Index-Industrial Worker(CPI-IW) and the Consumer Price Index-Agricultural Labour (CPI-AL). This report recommended that the poverty line should be calculated using the base of years 1973-74. The recommendations of the Lakdawala Committee were accepted by the Indian Government with some modifications in 1997.

6. Tendulkar Committee (2009):

This committee was set up in 2005. It shifted away from calory-consumption-based poverty estimation and moved towards factors like healthcare, education, and living standards. It opposed the Universal Reference Period used by earlier committees and used the Mixed Reference Period. The conclusion made by this committee was that the poverty line was at ₹446.68 per capita monthly in rural areas and ₹578.80 per capita monthly in urban areas from 2004-2005. Whereas, in 2009-2010, it was ₹672.8 in rural areas and ₹859.6 in urban areas.

7. C Rangarajan Committee (2012):

The chairman of this committee was C. Rangarajan, who released his report in 2014. This committee examined the differences between consumption data provided by the NSSO and the National Accounts aggregates and provided an alternate method to identify poverty levels.

It dismissed the estimation done by the Tendulacar committee. This committee also suggested how this method should be linked to eligibility for various poverty elimination schemes by the government of India.

The history of India’s poverty reflects the nation’s efforts to eliminate poverty in the country by enabling more accurate identification of the people in need and effective policy interventions.

Criteria for Below Poverty Line – BPL in India

“Below Poverty Line” (BPL) is a socio-economic factor used in India to identify individuals and families unable to meet basic needs like food, clothing, shelter, education, and healthcare. These people are classified based on various parameters, which were gathered through surveys. BPL defines the multidimensional nature of poverty in the country.

Parameters for defining BPL:

Residence: Whether it is self-owned or rented and whether it is a kutcha or pucca house.
Landholding: Whether the family is a small/marginal farmer or does not own any land.
Access to Food: The household’s spending on various food items and their need for sufficient food.
Access to Sanitation: Access of households to various sanitation facilities.
Education: Education qualification of households and the access to education.
Consumer Goods: The ownership and availability of consumer goods.
Clothing: Access to needed clothing and normal wear per person.
Family Size: The number of children and family members in the household.
Income: The total income of the household.
Cost of living: Cost of living in that particular area.

The BPL category is used in India to identify the individuals and households who require the most help which is provided by the government through various welfare programs. These parameters make the evaluation of the poor people accurate which enables effective targeting of welfare schemes.

How is the Poverty Line Defined?

There are various methodologies that are used in India to determine the poverty line in India that assess the minimum requirements for the standard of living. The criteria have evolved over time and now calorie-based and other socio-economic indicators are used.

Methodologies:

Calorie Intake: The Planning Commission introduced this method in which the minimum calorie requirement was set at 2,400 kcal for a day in rural areas and 2,100 kcal in urban areas. This method linked the minimum calorie requirement with poverty.
Consumption Expenditure: It defines the minimum per capita expenditure in a month that is required to purchase essential goods and services. The poverty line in rural and urban areas differs due to the difference in living costs.
Income Level: Various income levels are set by the government which differs according to the state and determines the eligibility to avail of BPL benefits.
Committee Recommendations: Experts and their recommendations have played a major role in defining the poverty line in India. The Lakdawala Committee (1993) emphasised calorie norms whereas the Tedeulkar Committee (2009) started focusing on healthcare, education, and living standards.
Socio-Economic Factors: Now multi-dimensional factors are used to determine the below-poverty line households, like landholdings, type of house, income, and vulnerability.

These methodologies help to ensure the understanding of the poverty line. These also help policymakers set the poverty line and identify households in need.

“Below Poverty Line” Income Limits

The Rangarajan Committee, established in 2012, provided the most recent methodology that determines India’s poverty line. This committee considers various factors of essential goods and services, including food, education, healthcare, clothing and shelter.

The current poverty line in India is:

In rural areas: ₹1059.42 per capita per month.
In urban areas: ₹1284 per capita per month.

State-Specific Variations in Poverty Line

The table below shows the state-specific variations in the poverty line in India. It is based on the recommendations of the Rangarajan Committee and the price level for 2011-2012. The content of this table highlights differences in rural and urban poverty lines in various states:

STATE	Rural Poverty Line (₹ per capita per month)	Urban Poverty Line (₹ per capita per month)
Andhra Pradesh	263	457
Assam	365	344
Bihar	333	380
Gujrat	319	474
Haryana	363	420
Himachal Pradesh	367	420
Karnataka	310	515
Kerela	375	477
Madhya Pradesh	311	482
Punjab	368	420
Rajasthan	344	444
Tamil Nadu	315	474
Uttar Pradesh	376	435
West Bengal	366	435

Note: Poverty ratios of some states have not been calculated separately. Instead, the ratio for these states is adopted from other states.

For Sikkim, Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Nagaland and Tripura, the poverty ratio of Assam is used.
For the Andaman and Nicobar Islands and Pondicherry, the poverty ratio of Tamil Nadu is used.
For Lakshwadeep, the poverty ratio of Kerala is used.
For the poverty ratio of both rural and urban areas of Chandigarh, the poverty ratio of Punjab is used.
For Daman & Diu, the poverty ratio of Goa is used.
To estimate the poverty ratio of Jammu & Kashmir, the poverty limit of Himachal Pradesh and the expenditure breakdown of Jammu & Kashmir is used.
To estimate the poverty ratio of Goa, the poverty line of Maharashtra and the expenditure of Goa is used.

These state-specific poverty lines highlight the diversity in the economic and social conditions of the different states of India. By considering these variations, the government can ensure resource distribution equally and inclusive development.

BPL Statistics: How Many People in India are Below the Poverty Line?

Low-income groups in India continue to be a major problem that directly influences its social and economic development. Over the years, India has been successful in reducing poverty; still, there are millions of individuals who struggle to meet daily needs. Below is a detailed analysis of the current situation of poverty in the country:

1. Population “Below Poverty Line” in India (2023):

According to the statistics of 2023, 4.5% of India’s population lives under the poverty line, with the rural percentage at 7.2% and urban poverty at 4.6%. This percentage shows a major decline compared to previous decades as a result of millions of individuals being lifted out of poverty through the efforts of government policies and welfare schemes.

2. India “Below Poverty Line” Percentage Vs Global Context:

As of 2023, 4.5% of India’s population is below the poverty line. Whereas, the Global poverty rate stands at 8.5% of the total population according to the estimate given by the World Bank. India’s poverty rate is comparatively higher than countries like China (less than 1%) but lower than conflict-affected countries like Sub-Saharan African nations (more than 40%). India contributes a large portion of the global population due to its large population.

3. How Many People Live “Below Poverty Line” in India?

The historical trends of the poverty percentage show a considerable decline in individuals living in poverty:

1973-74: Around 55%b of India’s population lived below the poverty line.
1993-94: The percentage came down to 45% as a result of economic reforms.
2004-05: The poverty ratio dropped further, down to 37%.
2011-12: According to the data of the Tendulkar Committee, the poverty rate decreased to 21.9%.
2019-21: Around 14.96% of the total population was living in poverty.

4. Impacts of Poverty on Indian Society:

Poverty has a significant impact on various aspects of Indian society:

Social Impact:

In India, poverty has a deep impact on the social aspects of the country. Due to the limited access to healthcare, nutrition and sanitation, the poor population has to face problems like malnutrition, infectious diseases and high infant mortality rates. Children from impoverished families often drop out of school, which leads to a lack of skills needed for economic advancements.

Economic Impacts:

The economic impacts of poverty are damaging and stagnant in nature. It reduces the availability of jobs and people’s ability to work. Poverty often leads to financial stress, which correlates with higher crime rates as people resort to illegal activities for survival. All these things directly impact the overall economic growth. Long-term unemployment and limited wages make it hard for families to escape the cycle of poverty.

Developmental Impacts:

Development in regions hit by poverty often faces many difficulties. Poverty leaves many individuals without access to things such as clean water, transportation, and electricity, acting as a hindrance to infrastructure development. The overall lack of infrastructure further isolates these areas and communities, affecting their overall development.

Addressing these multidimensional impacts of poverty is necessary to provide these individuals with the necessary facilities in education, healthcare, and infrastructural development to create a more inclusive and equitable society.

BPL Category Eligibility: Who Comes Under BPL Category in India?

Eligibility for The poverty line (BPL) status below in India is based on socioeconomic indicators and the income thresholds set by the government. These parameters can vary slightly in rural and urban areas:

1. Income Threshold:

According to Suresh Tendulkar, a person is considered below the poverty line if he spends less than ₹27 per day in rural areas and ₹33 per day in urban areas. This totals an annual income limit of approximately ₹27,000 for households.
Reports by other committees, such as one by Rangarajan, suggested a higher income threshold, but Tendulkar’s report and its suggestions are widely followed to date.

2. Socio-Economic Parameters:

The categorising process involves the evaluation of various factors like:

Type of Residence: Quality of residence and the status of ownership of housing.
Access to Basic Amenities: Availability of basic amenities like sanitation, safe drinking water and electricity.
Education Status: Education qualifications of the family members and also access to education for children in the family.
Employment Status: Regular employment status among family members.
Demographic Factors: Vulnerable groups of the society are included, such as Schedule Castes and Schedule Tribes (SC/ST) or households where the head of the family is a woman.

The identification of individuals and families who fall under the BPL category is crucial, as it helps to identify the targeted group of society that will benefit the most through welfare programs. It ensures that government resources reach those most in need and improves the living conditions throughout the country.

Benefits and Schemes for BPL Families in India

The government of India provides various welfare programs and schemes for the benefit of Below-Poverty-Line (BPL) individuals and families. These programs help improve their living conditions and provide them with access to essential goods and services.

1. Key Welfare Schemes for BPL Households:

BPL individuals and households are provided with various welfare schemes that aim at providing their basic needs:

Public Distribution System (PDS) via ration card: Provides food grains like rice, wheat, sugar, etc. at subsidised rates to eligible households via BPL category ration card.
Pradhan Mantri Awas Yojana (PMAY): Provides housing facilities to eligible households at affordable rates.
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): Provides health insurance facility of coverage up to ₹5 lakhs to each eligible family per year.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): It ensures 100 days of employment in a year to adults of rural households who are willing to do unskilled labour work.
National Social Assistance Programme (NSAP): It provides financial support to elder people, widows and people with disability.

2. BPL Card: What it Means and How it Works:

The BPL Card is an official document issued by the government of India to households who are identified as living under the poverty line defined by the government. This card is used as proof of identity for various government schemes and programs. This card is issued in every state after the families are surveyed and checked to see if they are eligible.

3. BPL Card Holder Benefits:

BPL cardholders are eligible for various benefits:

Food Supplies: Eligible to get food grains every month at subsidised rates (via ration cards) through the government fair price shops.
Healthcare: It provides free insurance facilities or subsidised medical treatments under the government healthcare schemes.
Education: Free scholarships, books, and other educational facilities are available for children from BPL households.
Housing Facilities: Eligible for housing schemes and to get housing facilities at subsidised rates.
Employment: Eligible to get guaranteed employment under the rural employment programs.

4. How to Apply for a BPL Certificate?

Here are the steps you can follow to get a BPL certificate:

First, ensure that your family meets the income criteria based on the poverty line set by the government.
Get the application form from the local government office or download it from the online portal.
Fill in the form carefully with all the details and attach the required documents with the form (Aadhaar Cards of family members, income certificate, address proof, passport size photographs of members).
The government officials will verify the details of the form and will conduct a verification process by visiting your home.
After the successful verification, you will be issued a BPL card through which you can avail to all government welfare programs.

Under Poverty Line vs. Above Poverty Line

The households are classified into two major categories, “Under poverty line” (BPL) or “Above poverty line” (APL), based on their economic status and their eligibility to avail of various government programs. The key differences are:

Aspect	Under Poverty Line (BPL)	Above Poverty Line (APL)
Definition:	Those households whose income or consumption falls under the officially defined poverty line by the government.	Those households whose income level is above the poverty line and are self-sufficient to meet their basic needs.
Benefits:	Full access to targeted welfare schemes.	Limited or no access to targeted welfare schemes.
Living Conditions:	Not able to meet basic needs. Living with severe constraints.	A little stable and able to meet basic needs with better resources.
Socio-economic status:	Vulnerable economic conditions	Comparatively, secured economic conditions.

These differences in two major groups of households play a critical role in policymaking and ensuring that the resources reach the targeted group that is the most vulnerable section of society while still promoting growth for all the sections.

Also, read: APL Ration Card: Above Poverty Line Card Benefits

Impact of BPL Classification on Society

1. Significance of BPL Status:

The classification of people Below the poverty line (BPL) helps to identify the vulnerable section of society. It ensures that the benefits of government welfare programs are able to reach the individuals who need them the most. By categorizing the families under BPL, the government is able to address their issues like hunger, lack of education, poor health, and unemployment more accurately. To these marginalised communities, BPL status provides them with a way to access all the benefits of government welfare programs and schemes that help to improve their status of living and reduce inequality.

2. BPL and Government Policies:

Government welfare policies and programs are greatly influenced by the BPL category. All these programs, like the Public Distribution System (PDS), healthcare benefits through Ayushman Bharat, and employment schemes like MGNREGA are introduced by the governments while keeping the BPL families as the direct beneficiaries of these policies. Also, such classification of households helps the government to track that the resources they are providing through their policies are able to reach the marginalised group minimizing any chances of misuse.

3. How BPL Affects Access to Resources:

The classification of BPL households has a significant impact on access to resources such as food grains at subsidised rates, low-cost healthcare benefits, scholarships for child education, and housing and employment benefits through government schemes. While this classification opens the pathway for marginalised groups to get basic resources and improve their standard of living, it also leads to discrimination against BPL families as they are considered inferior or dependent on government support.

Classification of BPL families serves as a life net for many individuals, but its impact totally depends on how effectively it is executed. Regular updates of eligibility criteria and regular verification and efforts to transition families out of poverty should be kept in mind to avoid the misuse of government welfare programs.

Conclusion

The classification of families as Below the poverty line (BPL) acts as a critical tool for the government’s fight to eradicate inequality in India. It serves as the foundation for the welfare programs and provides them with the right target that requires upliftment in society. The effectiveness of this initiative by the government depends on correct identification, transparent implication and regular updates according to the changing economy. In India’s journey of economic growth and ensuring equality in society, it is very important to strengthen the framework of the BPL initiative so that no one in the nation is left behind in this race for economic development and a better future.