For many years, poverty was measured mainly by income, i.e., how much money a person or household earns. This approach, known as income poverty, uses a poverty line to decide who is poor. While this helps identify those with very low earnings, it only captures one part of people’s lived reality.

Over time, it became clear that poverty is not just about money - several factors like caste, gender, and visible or invisible disabilities, among others, impact a person’s access to good health and resources. A family may earn slightly above the poverty line yet still struggle with malnutrition, unsafe water, lack of schooling, or inadequate housing. 

To address these gaps, several other measures emerged. 

The Human Development Index (HDI) broadened the perspective by looking at health, education, and standard of living, but it reflected national averages rather than the specific problems households face. The basic needs approach looked at access to essentials like food, shelter, water, and sanitation, but it lacked a clear and consistent way to combine these factors into a single measure.