Distinguish between absolute poverty and relative poverty. What are the major factors that have been taken into account in the approaches to estimate poverty in India? In what way they have changed over time?

Absolute poverty and relative poverty are two distinct concepts used to measure poverty, each focusing on different aspects of economic deprivation. Absolute poverty refers to a condition where individuals or households lack the basic necessities required to sustain a minimum standard of living. This minimum standard typically includes access to adequate food, shelter, clothing, healthcare, and education. Absolute poverty is often quantified by a poverty line, which is a set income threshold below which a person is considered to be living in poverty. In India, this threshold is adjusted for inflation and is determined by the government to reflect the cost of a basic basket of goods and services required to meet basic needs. A person or household earning below this poverty line is considered to be living in absolute poverty.

On the other hand, relative poverty is a measure of poverty in relation to the economic conditions of other members of society. It takes into account the income inequality within a given society and considers a person to be in poverty if their income or living standards are significantly below the average, regardless of whether they can meet basic needs. Relative poverty highlights disparities in income distribution and is often used to reflect social exclusion or marginalization within a specific society or community. For example, in a society where the average income is very high, a person earning much less than the average may still be considered poor, even if they are able to afford basic necessities. 

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