INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

This paper examines the application of the Foster-Greer-Thorbecke (FGT) methodology to assess poverty through the lens of the monetary approach. The study focusses on the rural context of India, utilising the poverty line established by the Planning Commission. Through the computation of the headcount ratio, poverty gap index, and squared poverty gap index, the paper explores the extent, depth, and severity of poverty in rural areas. The findings offer insights into the effectiveness of the FGT method in understanding the monetary dimensions of poverty, highlighting its implications for policy development and poverty alleviation efforts. Additionally, the study compares the results obtained using the FGT methodology with other poverty assessment tools to provide a comprehensive analysis of poverty in rural India. The research also discusses potential limitations of the FGT approach and suggests areas for further investigation to enhance its accuracy and applicability in different contexts.