History of BPL
The Planning Commission Task Force in 1962 suggested a minimum standard of living, which is ₹20 (per person) in rural regions and ₹25 (per person) in urban regions, with no state-funded healthcare or education. After the 1970s, the criteria for the lower BPL level were amended again, and now include the daily minimum income of ₹49.1 for rural areas and ₹56.7 for urban areas. respectively. Later, in 1993, a committee of experts divided the concept of aggregate poverty line into the definition of state level, with each state’s poverty limit stated independently. Then in 2012, the poverty line in rural India was ₹972; in urban India, it was ₹1,407. During that time, according to reports about 29.5% of Indians lived below the poverty line in that year. The Rangarajan Panel reported that in 2014, 454 million people, equivalent to 38% of the population, were living in extreme poverty in the country.
Parameters that Define BPL
As per the World Bank’s standards, individuals living on less than $1.25 per day are considered to be living in poverty. However, India initially utilised a sustaining food standard to establish the poverty line before shifting to an individual’s spending over a set period of time for a basket of necessities. Food, transportation, clothing, rent, fuel, power, and education were all included in this basket of goods.