Latest news with #Poverty&EquityBrief
Indian Express
3 days ago
- Business
- Indian Express
Poverty fell significantly last year. Much of it was driven by GDP growth
The Household Consumption Expenditure Survey for 2022-23 and the 2023-24 reports by the National Statistics Office (NSO) enable us to arrive at estimates of poverty and inequality for recent years. Several researchers have drawn up estimates using the 2022-23 survey. Very few have, however, used the 2023-24 survey. We look at trends in head count ratio, the depth of poverty and trends in inequality from 2011-12 to 2023-24. The poverty lines (monthly per capita consumption expenditure) based on the methodology of the Rangarajan Committee for rural areas are Rs 972 in 2011-12, Rs. 1,837 in 2022-23 and Rs 1,940 in 2023-24. The poverty lines for urban areas are Rs1,407 in 2011-12, Rs 2,603 in 2022-23 and Rs 2,736 in 2023-24. In other words, for a family of five living in an urban area, the poverty line in 2023-24 will be Rs 13,680. The estimated total (rural and urban) poverty ratios declined from 29.5 per cent in 2011-12 to 9.5 per cent in 2022-23 and to 4.9 per cent in 2023-24. Poverty declined significantly between 2011-12 and 2023-24 (2.05 percentage points per annum), though the rate of decline was slightly less compared to the period 2004-05 to 2011-12 (2.2 percentage points per annum). The World Bank recently released a Poverty & Equity Brief for over 100 developing countries. It says India has significantly reduced poverty over the past decade. Extreme poverty (living on less than $2.15 per day in purchasing power parity terms) declined from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23 — more than 170 million were lifted above conditions of extreme poverty in this period. The number of people below the poverty line criteria for lower-middle-income countries — $3.65 per day — fell from 61.8 per cent to 28.1 per cent. Poverty declined significantly between 2022-23 to 2023-24. In a year, it fell from 9.5 per cent to 4.9 per cent. What can this achievement be attributed to? Poverty is determined by factors such as GDP growth, prices and safety nets. GDP growth increased from 7.6 per cent in 2022-23 to 9.2 per cent in 2023-24 — an increase of 1.6 percentage points in one year. The consumer price index (CPI) declined from 6.7 per cent in 2022-23 to 5.4 per cent in 2023-24 — a decline of 1.3 percentage points. However, food inflation increased from 6.6 per cent to 7.5 per cent during the same period. There does not seem to be significant changes in welfare programmes that make up the safety next. It appears, therefore, that GDP growth could be a proximate reason for the decline in poverty in 2023-24 as compared to that of 2022-23. However, we need to exercise caution before coming to a definite conclusion, based on a year of steep change. Another survey could confirm if this is a trend. We also examine the depth of poverty for India by looking at poverty ratios using different cut-offs of the poverty line (PL) for the period 2011-12 to 2023-24. The first issue is whether the poverty ratios with raised poverty line cut-offs are declining as fast as those with the actual poverty line. The second is about the location of the poor — are they placed much below the poverty line or around the poverty line? The poverty ratio (rural and urban) declined by 20 percentage points between 2011-12 and 2022-23 and by 24.6 percentage points between 2011-12 and 2023-24. Even if we raise the poverty line to 125 per cent, the reduction in poverty ratio is 28.4 percentage points between 2011-12 to 2022-23 and 34.2 percentage points between 2011-12 and 2023-24 (Table 1). Higher reduction is also true for the poverty ratio based on 115 per cent and 150 per cent of poverty line. The head count ratio is criticised on the ground that it does not measure the 'depth' of poverty. It is seen, however, that more than 50 per cent of the poor lie between the third and fourth quarter of the poverty line. This is true for both the years — 2011-12 and 2022-23. In fact, in 2022-23, 56 per cent of the rural poor and total poor fall in this segment. In a similar vein, a large section of the non-poor are just above the poverty line — between 115 and 125 per cent of this yardstick. Inequality in consumption also declined during the period 2011-12 to 2022-23 and from 2022-23 to 2023-24. The Gini coefficient estimated by the National Statistical office shows that inequality fell from 0.310 in 2011-12 to 0.282 in 2022-23. The decline in inequality was higher for urban areas. However, it is surprising to see that inequality in consumption declined significantly in one year — 2022-23 to 2023-24. The Gini coefficient fell from 0.282 in 2022-23 to 0.253 points — a decline of 0.029 points. On the other hand, the decline during the 11 year period 2011-12 to 2022-23 is almost similar — 0.028 points. One has to examine the significant decline in inequality in one year between 2022-23 and 2023-24. To conclude, there has been a significant decline in poverty. The poverty ratio is now in single digits. The overall inequality in consumption expenditure has come down a bit. Significant decline in poverty in one year between 2022-23 and 2023-24 needs further confirmation. Our analysis shows that most of the poor are concentrated around the poverty line — this makes poverty more manageable. Rangarajan is Former Chairman, Economic Advisory Council to the Prime Minister and Former Governor, Reserve Bank of India. Dev is Chairman, Institute for Development Studies, Andhra Pradesh and Former Vice Chancellor, IGIDR, Mumbai
India Gazette
09-05-2025
- Business
- India Gazette
World Bank chief Ajay Banga meets UP CM Yogi Adityanath during day-long Lucknow visit
Lucknow (Uttar Pradesh) [India], May 9 (ANI): World Bank President Ajay Banga met Uttar Pradesh Chief Minister in the state's capital on Friday. The World Bank Chief is on day-long visit to Lucknow to attend a host of meetings and events. Under the vision of CM Yogi Adityanath, the state is moving rapidly towards achieving the target of becoming a USD 1 trillion economy, the Uttar Pradesh government said in a statement announcing the visit of the World Bank chief. 'By becoming synonymous with enterprise, advancement, progress and excellent law and order, Uttar Pradesh has cemented its identity as the 'growth engine of the country',' the statement said. The interests of global institutions have been increasing and they are wanting to become a partner in this journey, the statement added. During his one-day visit, Ajay Banga is scheduled to visit Lucknow and neighbouring Barabanki district and participate in various meetings, interactions and programmes. He will visit the Take Home Ration (THR) plant at Chinhat Block. Later, he is scheduled to visit a beekeeping center in Rajauli, Barabanki and interact with women beekeepers. Later in the evening, he will participate in a reserve program before leaving for Delhi. On Thursday, the World Bank President Ajay Banga met Prime Minister Narendra Modi in New Delhi. According to sources, infrastructure and agriculture were among the key topics on the agenda during their discussion. Separately, World Bank in a report recenty asserted that the extreme poverty (living on less than USD 2.15 per day) fell from 16.2 percent in 2011-12 to 2.3 percent in 2022-23, lifting 171 million people in India above this line. This in a way is an endorsement of Prime Minister Narendra Modi's poverty reduction claims. Over the past decade, India has significantly reduced poverty. According to the Poverty & Equity Brief report of World Bank released recently, rural extreme poverty dropped from 18.4 percent to 2.8 percent, and urban from 10.7 percent to 1.1 percent, narrowing the rural-urban gap from 7.7 to 1.7 percentage points--a 16 percent annual decline. (ANI)
India Today
26-04-2025
- Business
- India Today
India lifted 171 million people from extreme poverty from 2012 to 2022: World Bank
India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23, the World Bank said."Over the past decade, India has significantly reduced poverty. Extreme poverty (living on less than USD 2.15 per day) fell from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23, lifting 171 million people above this line,' the World Bank said in its 'Poverty & Equity Brief' on added that rural extreme poverty dropped from 18.4 per cent to 2.8 per cent, and urban from 10.7 per cent to 1.1 per cent, narrowing the rural-urban gap from 7.7 to 1.7 percentage points — a 16 per cent annual decline. The brief said that India also transitioned into the lower-middle-income category. Using the USD 3.65 per day LMIC poverty line, poverty fell from 61.8 per cent to 28.1 per cent, lifting 378 million people out of poverty dropped from 69 per cent to 32.5 per cent, and urban poverty from 43.5 per cent to 17.2 per cent, reducing the rural-urban gap from 25 to 15 percentage points with a 7 per cent annual five most populous states — Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—accounted for 65 per cent of the country's extreme poor in 2011-12 and contributed to two-thirds of the overall decline in extreme poverty by 2022-23, it these states still accounted for 54 per cent of India's extremely poor (2022-23) and 51 per cent of the multidimensionally poor (2019-21)," the brief said, adding that as measured by the multidimensional poverty index (MPI), non-monetary poverty declined from 53.8 per cent in 2005-06 to 16.4 per cent by brief added that employment growth has outpaced the working-age population since 2021-22. Employment rates, especially among women, are rising, and urban unemployment fell to 6.6 per cent in Q1 FY24/25, the lowest since data indicates a shift of male workers from rural to urban areas for the first time since 2018-19, while rural female employment in agriculture has the challenges that persist, the brief said that youth unemployment is 13.3 per cent, increasing to 29 per cent among tertiary education graduates. Only 23 per cent of non-farm paid jobs are formal, and most agricultural employment remains is rising, especially among rural workers and women. Despite female employment rate of 31 per cent, gender disparities remain, with 234 million more men in paid World Bank Poverty and Equity Briefs (PEBs) highlight poverty, shared prosperity and inequality trends for over 100 developing briefs are released twice a year for the Spring and Annual Meetings of the World Bank Group and International Monetary Fund and help users understand a country's poverty and inequality context at-a-glance and seek to keep poverty reduction on top of the world's Watch
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Business Standard
26-04-2025
- Business
- Business Standard
India lifted 171 mn people from extreme poverty between 2011-23: World Bank
India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23, the World Bank said. "Over the past decade, India has significantly reduced poverty. Extreme poverty (living on less than $2.15 per day) fell from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23, lifting 171 million people above this line, the World Bank said in its Poverty & Equity Brief' on India. It added that rural extreme poverty dropped from 18.4 per cent to 2.8 per cent, and urban from 10.7 per cent to 1.1 per cent, narrowing the rural-urban gap from 7.7 to 1.7 percentage points a 16 per cent annual decline. The brief said that India also transitioned into the lower-middle-income category. Using the $3.65 per day LMIC poverty line, poverty fell from 61.8 per cent to 28.1 per cent, lifting 378 million people out of poverty. Rural poverty dropped from 69 per cent to 32.5 per cent, and urban poverty from 43.5 per cent to 17.2 per cent, reducing the rural-urban gap from 25 to 15 percentage points with a 7 per cent annual decline. India's five most populous states Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradeshaccounted for 65 per cent of the country's extreme poor in 2011-12 and contributed to two-thirds of the overall decline in extreme poverty by 2022-23, it said. "Nevertheless, these states still accounted for 54 per cent of India's extremely poor (2022-23) and 51 per cent of the multidimensionally poor (2019-21)," the brief said adding that as measured by the multidimensional poverty index (MPI), non-monetary poverty declined from 53.8 per cent in 2005-06 to 16.4 per cent by 2019-21. The brief added that employment growth has outpaced the working-age population since 2021-22. Employment rates, especially among women, are rising, and urban unemployment fell to 6.6 per cent in Q1 FY24/25, the lowest since 2017-18. Recent data indicates a shift of male workers from rural to urban areas for the first time since 2018-19, while rural female employment in agriculture has grown. Highlighting the challenges that persist, the brief said that youth unemployment is 13.3 per cent, increasing to 29 per cent among tertiary education graduates. Only 23 per cent of non-farm paid jobs are formal, and most agricultural employment remains informal. Self-employment is rising, especially among rural workers and women. Despite female employment rate of 31 per cent, gender disparities remain, with 234 million more men in paid work. The World Bank Poverty and Equity Briefs (PEBs) highlight poverty, shared prosperity and inequality trends for over 100 developing countries. The briefs are released twice a year for the Spring and Annual Meetings of the World Bank Group and International Monetary Fund and help users understand a country's poverty and inequality context at-a-glance and seek to keep poverty reduction on top of the world's agenda.
Time of India
26-04-2025
- Business
- Time of India
India lifted 171 million people from extreme poverty between 2011-12 and 2022-23: World Bank
AI generated image NEW DELHI: India has successfully lifted 171 million people out of extreme poverty in the decade spanning from 2011-12 to 2022-23, according to the World Bank 's latest "Poverty & Equity Brief." The report reveals that extreme poverty, defined as living on less than USD 2.15 per day, fell from 16.2% in 2011-12 to 2.3% in 2022-23. This significant reduction marks the country's success in pulling 171 million people above the extreme poverty line. "Over the past decade, India has significantly reduced poverty. Extreme poverty (living on less than $2.15 per day) fell from 16.2 percent in 2011-12 to 2.3 percent in 2022-23, lifting 171 million people above this line. Rural extreme poverty dropped from 18.4 percent to 2.8 percent, and urban from 10.7 percent to 1.1 percent, narrowing the rural-urban gap from 7.7 to 1.7 percentage points—a 16 percent annual decline. " the World Bank report stated. "India also transitioned into the lower-middle-income category. Using the $3.65 per day LMIC poverty line, poverty fell from 61.8 percent to 28.1 percent, lifting 378 million people out of poverty. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo Rural poverty dropped from 69 percent to 32.5 percent, and urban poverty from 43.5 percent to 17.2 percent, reducing the rural-urban gap from 25 to 15 percentage points with a 7 percent annual decline." The report added. Source -World Bank The World Bank also noted that rural extreme poverty decreased from 18.4% to 2.8%, and urban extreme poverty dropped from 10.7% to 1.1%. The gap between rural and urban poverty narrowed from 7.7 to 1.7 percentage points, reflecting an annual decline of 16%. Poverty levels in India at different poverty lines for 2022 Column Poverty Line Number of Poor (Thousands) Rate (%) Year 1 International Poverty Line (USD 2.15/day) 33,485.8 2.3 2022 2 Lower Middle Income Class Poverty Line (USD 3.65/day) 400,771.1 28.1 2022 3 Multidimensional Poverty Measure - 15.5 2022 In its assessment, the World Bank further observed that India transitioned into the lower-middle-income category. Using the USD 3.65 per day poverty line for lower-middle-income countries (LMIC), overall poverty fell from 61.8% to 28.1%, lifting 378 million people out of poverty. Rural poverty dropped from 69% to 32.5%, and urban poverty from 43.5% to 17.2%, reducing the rural-urban gap from 25 to 15 percentage points, with a 7% annual decline. The brief also highlighted that India's five most populous states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—accounted for 65% of the country's extreme poor in 2011-12. These states were responsible for two-thirds of the reduction in extreme poverty by 2022-23. However, by 2022-23, these states still accounted for 54% of India's extremely poor and 51% of its multidimensionally poor population. The World Bank's multidimensional poverty index (MPI), which measures non-monetary poverty, showed a decline from 53.8% in 2005-06 to 16.4% by 2019-21. Regarding employment, the World Bank noted that employment growth had outpaced the working-age population since 2021-22, with employment rates, particularly among women, rising. Urban unemployment fell to 6.6% in Q1 FY24/25, the lowest since 2017-18. The data also indicated a shift of male workers from rural to urban areas for the first time since 2018-19, while rural female employment in agriculture has increased. Despite these improvements, challenges persist. The report highlighted that youth unemployment stands at 13.3%, with the rate rising to 29% among tertiary education graduates. Only 23% of non-farm paid jobs are formal, and much of agricultural employment remains informal. Furthermore, while self-employment is on the rise, especially among rural workers and women, gender disparities persist, with 234 million more men in paid work than women. The World Bank's Poverty and Equity Briefs provide valuable insights into poverty, shared prosperity, and inequality trends across over 100 developing countries. These briefs are released twice a year and serve as a key resource for understanding poverty reduction efforts globally Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
