World Bank estimates of extreme poverty in 2010 were that over 32.7% of the Indian population lived on less than $1.25 a day, down from more than 50% in 1994. According to World Bank report 2016, 1 out of 5 people living in India is poor. Poverty rate in urban area is 14% while poverty rate in rural area is 25%. In rural area low income categories are mainly casual labor while in urban area low income categories are mainly self employed and casual labor or daily wagers. The data shows that Poor and Non-Poor both of the categories spent maximum proportion of their income in food. Furthermore, the Poor spent 56% of their income in food while the Non-Poor spent 47% of their income in food. This numbers clearly depicts that the Poor spends more on food than Non-Poor. Subsidies given on food by the government for the poor can save some portion of their income which they can spend in health, education or others.