Solution:Population control, increased savings (higher capital formation) and more investment in productive activities all of these will help in eradicating poverty.The poverty line solely depends on the per capita income in India rather than the level of prices. The poverty line is the minimum income required to purchase the basic goods and services that are essential to satisfy the basic human needs. The proportion of the population that is below this poverty line is called the poverty ratio or headcount ratio.
Similar approaches are followed by most countries and international institutions for determining BPL. In India, the first official rural and urban poverty lines at the national level were introduced in 1979 by Y. K. Alagh Committee.
The Public Distribution System (PDS) which evolved as a system of management for food and distribution of food grains plays a major role in poverty alleviation. This programme is operated jointly by the Central Government and the State Government of India. The responsibilities include:
- Allocations of commodities such as rice, wheat, kerosene, and sugar to the States and Union Territories.
- Issue of Ration Cards for the people below the poverty line.
- Identification of families living below the poverty line.
- Management of food scarcity and distribution of food grains.