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In spite the middle class has gained from recent ], ] suffers from substantial poverty. The Planning Commission, which is the nodal official agency for poverty estimation, has estimated that 27.5% of the population was living below the ] in 2004–2005, down from 51.3% in 1977–1978, and 36% in 1993-1994<ref>, Planning commission, ], March 2007. Accessed: ], ]</ref>. The source for this was the 61st round of the National Sample Survey (NSS) and the criterion used was monthly per capita consumption expenditure below Rs. 356.35 for rural areas and Rs. 538.60 for urban areas. 75% of the poor are in rural areas with most of them comprising ], self-employed households and landless labourers. Despite a veneer of expansionist, "superpower" government priorities like nuclear weapons and a space program, India has more than 836 million people living on less that 50 cents($2 in PPP) a day according to a recent report. | |||
{{Use Indian English|date=May 2019}} | |||
{{Use dmy dates|date=October 2016}} | |||
==Causes of poverty in India== | |||
] | |||
There are at least two main schools of thought regarding the causes of poverty in India and the developing world in general. | |||
] | |||
] | |||
] | |||
'''Poverty in India''' remains a major challenge despite overall reductions in the last several decades as ] grows. According to an ] paper, extreme poverty, defined by the ] as living on US$1.9 or less in ] (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented ].<ref>{{Cite web|url=https://www.financialexpress.com/economy/india-kept-extreme-poverty-below-1-despite-pandemic-imf-paper/2484041/|title=India kept extreme poverty below 1% despite pandemic: IMF paper|date=7 April 2022 }}</ref><ref>{{Cite web|url=https://www.hindustantimes.com/world-news/india-has-almost-wiped-out-extreme-poverty-imf-101649311909782.html|title = India has almost wiped out extreme poverty: International Monetary Fund|date = 7 April 2022}}</ref> | |||
'''The Developmentalist View''''' | |||
According to the World Bank, India experienced a significant decline in the prevalence of extreme poverty from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period. The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively.<ref>{{cite web | url=https://www.worldbank.org/en/search?q=india+poverty¤ttab=4¤tTab=1#:~:text=First%2C%20the%20poverty%20headcount%20rate,from%2022.5%20percent%20in%202011 | title=Worldbank Search }}</ref> According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the ] found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."<ref>{{cite web|url=https://www.downtoearth.org.in/news/economy/how-india-remains-poor-it-will-take-7-generations-for-india-s-poor-to-reach-mean-income--68898 |title=How India remains poor: 'It will take 7 generations for India's poor to reach mean income' |publisher=Downtoearth.org.in |date= 21 January 2020|accessdate=2022-02-28}}</ref> | |||
The World Bank has been revising its definition and benchmarks to measure poverty since 1990–1991, with a $0.2 per day income on purchasing power parity basis as the definition in use from 2005 to 2013.<ref name=mrwb/> Some semi-economic and non-economic indices have also been proposed to measure poverty in India. For example, in order to determine whether a person is poor, the Multi-dimensional Poverty Index places a 33% weight on the number of years that person spent in school or engaged in education and a 6.25% weight on the financial condition of that person.<ref name=ophimpi/> | |||
''Colonial Economic Restructuring | |||
'' | |||
The different definitions and underlying small sample surveys used to determine poverty in India have resulted in widely varying estimates of poverty from the 1950s to 2010s. In 2019, the Indian government stated that 6.7% of its population is below its official ].<ref name=rbi2192/> Based on 2019's PPPs ],<ref>{{cite web |url=http://go.worldbank.org/9EMHDNLC50 |title=World Bank's $1.25/day poverty measure- countering the latest criticisms |publisher=The World Bank |date=January 2010 |access-date=16 August 2017|page=50}}</ref><ref>{{cite book |url=https://openknowledge.worldbank.org/bitstream/handle/10986/20384/9781464803611.pdf |title=A Measured Approach to Ending Poverty and Boosting Shared Prosperity |publisher=The World Bank |year=2015 |isbn=978-1-4648-0361-1 |doi=10.1596/978-1-4648-0361-1 |hdl=10986/20384 }}</ref><ref name=cnk2014/> According to the United Nations ] (MDG) programme, 80 million people out of 1.2 billion Indians, roughly equal to 6.7% of India's population, lived below the poverty line of $1.25 <ref>{{cite news|url=http://www.thehindu.com/news/national/8-gdp-growth-helped-reduce-poverty-un-report/article6862101.ece|author=Puja Mehra|title=8% GDP growth helped reduce poverty: UN report|work=]|date=2 April 2016|access-date=16 August 2017}}</ref> and 84% of Indians lived on less than $6.85 per day in 2019.<ref>{{cite web | url =http://data.worldbank.org/indicator/SI.POV.UMIC | title =Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population) | publisher = ] }}</ref> According to the second edition of the Multidimensional Poverty Index (MPI) released by Niti Aayog, approximately 14.96% of India's population is considered to be in a state of multidimensional poverty.<ref>{{cite web |last1=Banjot Kaur |title=20.79 Crore Indians Are 'Multidimensionally Poor', Urban-Rural Divide a Concern: Niti Aayog |url=https://thewire.in/economy/20-79-crore-indians-are-poor-urban-rural-divide-a-concern-niti-aayog |website=The Wire |access-date=27 July 2023}}</ref> The National Multidimensional Poverty Index (MPI) assesses simultaneous deprivations in health, education, and standard of living, with each dimension carrying equal weight. These deprivations are measured using 12 indicators aligned with the Sustainable Development Goals (SDGs).<ref>{{cite web |last1=PIB Delhi |title=13.5 crore Indians escape Multidimensional Poverty in 5 years. |url=https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1940125 |website=pib.gov.in |access-date=27 July 2023}}</ref> On July 17, 2023, Niti Aayog reported a significant reduction in the proportion of poor people in the country, declining from 24.8% to 14.9% during the period from 2015–16 to 2019–21. This improvement was attributed to advancements in nutrition, years of schooling, sanitation, and the availability of subsidized cooking fuel.<ref>{{cite news |title=3.4 core escaped poverty in Uttar Pradesh, in five years, most in India: Niti Ayog |url=https://timesofindia.indiatimes.com/india/3-4-crore-escaped-poverty-in-up-in-5-years-most-in-india-niti-aayog/articleshow/101837623.cms?from=mdr |website=Times of India | date=18 July 2023 |access-date=27 July 2023}}</ref> As per the report, approximately 135 million people in India were lifted out of multidimensional poverty between 2015–16 and 2019–21.<ref>{{Cite news |date=2023-07-18 |title=3.4 crore escaped poverty in Uttar Pradesh in 5 years, most in India: Niti Aayog |work=The Times of India |url=https://timesofindia.indiatimes.com/india/3-4-crore-escaped-poverty-in-up-in-5-years-most-in-india-niti-aayog/articleshow/101837623.cms?from=mdr |access-date=2023-07-31 |issn=0971-8257}}</ref> | |||
Prime Minister Jawaharlal Nehru noted, "A significant fact which stands out is that those parts of India which have been longest under British rule are the poorest today." The Indian economy was purposely and severely deindustrialized (especially in the areas of textiles and metal-working) through colonial privatizations, regulations, tariffs on manufactured or refined Indian goods, taxes, and direct seizures. | |||
From the late 19th century through the early 20th century, under the ], poverty in India intensified, peaking in the 1920s.<ref name=troy/><ref name=am1970/> ] and diseases killed millions in multiple cycles throughout the 19th and early 20th centuries.<ref name=murton/><ref name=asen/> After India gained its independence in 1947, mass deaths from famines were prevented.<ref>{{cite web |last1=Beitler |first1=Maddie |title=Colonial India: A Legacy of Neglect |url=https://storymaps.arcgis.com/stories/1bcfcb6b88c846f99e05ab7831669757 |website=ArcGIS StoryMaps |access-date=17 March 2022 |language=en |date=26 September 2020 |quote=It is important to note that there has not been a major famine in India since it gained its independence in 1947. }}</ref> Since 1991, rapid economic growth has led to a sharp reduction in extreme poverty in India.<ref name=bnp2013/><ref name=ssaa/> However, those above the poverty line live a fragile economic life.<ref>John Burn-Murdoch and Steve Bernard, , ''The Financial Times'' (13 April 2014). Retrieved 16 August 2017.</ref> As per the methodology of the ] Committee report, the population below the poverty line in India was 354 million (29.6% of the population) in 2009–2010 and was 269 million (21.9% of the population) in 2011–2012.<ref>{{Cite book|last=Sepoy|first=Inzamul|title=Indian Economic Development|year=2019|page=84}}</ref> In 2014, the ] Committee said that the population below the poverty line was 454 million (38.2% of the population) in 2009–2010 and was 363 million (29.5% of the population) in 2011–2012.<ref>{{cite web|url=http://www.firstpost.com/india/30-of-india-is-poor-says-rangarajan-panels-new-poverty-line-formula-1606187.html |title=30% of India is poor, says Rangarajan panel's new poverty line formula |date=7 July 2014 |publisher=First Post |access-date=2017-10-21}}</ref> Deutsche Bank Research estimated that there are nearly 300 million people who are in the middle class.<ref>{{cite web|url=http://www.dbresearch.de/PROD/DBR_INTERNET_DE-PROD/PROD0000000000253735.pdf|title=The middle class in India|publisher=Deutsche Bank Research|date=15 February 2010|access-date=16 August 2017}}</ref> If these previous trends continue, India's share of world GDP will significantly increase from 7.3% in 2016 to 8.5% by 2020.<ref>{{cite web|url=https://www.imf.org/external/pubs/ft/weo/2016/02/weodata/weorept.aspx?pr.x=54&pr.y=8&sy=2016&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&c=534&s=PPPSH&grp=0&a=|title=Report for Selected Countries and Subjects|access-date=16 August 2017}}</ref> In 2012, around 170 million people, or 12.4% of India's population, lived in poverty (defined as $1.90 (Rs 123.5)), an improvement from 29.8% of India's population in 2009.<ref>{{cite web|url=http://data.worldbank.org/country/india|title=India – Data|access-date=16 August 2017}}</ref><ref>{{cite web|url=http://www.indiaspend.com/cover-story/indias-poverty-rate-falls-to-12-4-electricity-plays-big-role-20364|title=India's Poverty Rate Falls To 12.4%, Electricity Plays Big Role|date=10 October 2015|access-date=16 August 2017}}</ref> In their paper, economists Sandhya Krishnan and Neeraj Hatekar conclude that 600 million people, or more than half of India's population, belong to the middle class.<ref>{{Cite news|url=https://www.bbc.com/news/world-asia-india-41264072|title=Is India's middle class actually poor?|first=Soutik|last=Biswas|work=BBC News|date=15 November 2017}}</ref> | |||
In 1830, India accounted for 17.6% of global industrial production against Britain's 9.5%, but by 1900 India's share was down to 1.7% against Britain's 18.5%. (The change in industrial production per capita is even more extreme due to Indian population growth.) | |||
The ] estimates India's population to be at 1.28 billion with an average growth rate of 1.3% from 2010 to 2015. In 2014, 9.9% of the population aged 15 years and above were employed. 6.9% of the population still lives below the national poverty line and 6.3%{{Additional source needed|date=October 2024}} in extreme poverty (December 2018).<ref>. Asian Development Bank. Retrieved 16 August 2017.</ref> The ] shows real-time poverty trends in India, which are based on the latest data, of the World Bank, among others. As per recent estimates, the country is well on its way of ending extreme poverty by meeting its sustainable development goals by 2030.<ref>{{cite news|url=https://timesofindia.indiatimes.com/india/a-number-1-position-india-is-happy-to-lose/articleshow/64744866.cms|title=A number 1 position India is happy to lose|work=The Times of India}}</ref> According to ], India's top 1% of the population now holds 73% of the wealth, while 670 million citizens, comprising the country's poorer half, saw their wealth rise by just 1%.<ref>{{cite web|url=https://www.businesstoday.in/latest/economy-politics/story/oxfam-india-wealth-report-income-inequality-richests-poor-98884-2018-01-22|title=Income inequality gets worse; India's top 1% bag 73% of the country's wealth, says Oxfam|work=Business Today|date=22 January 2018 }}</ref> | |||
Not only was Indian industry losing out, but consumers were forced to rely on expensive (open monopoly produced) British manufactured goods, especially as barter, local crafts and subsistence agriculture was discouraged by law. The agriculutural raw materials exported by Indians were subject to massive price swings and declining terms of trade. | |||
==Definition of poverty== | |||
Poverty is the state of not having enough material possessions or income for a person basic need. Poverty may include social, economic, and political elements. Absolute poverty is the complete lack of the means necessary to meet basic personal needs, such as food, clothing, and shelter. | |||
;Economic measures | |||
There are several definitions of poverty, and scholars disagree as to which definition is appropriate for India.<ref>Erenstein (2011), Livelihood Assets as a Multidimensional Inverse Proxy for Poverty: A District‐level Analysis of the Indian Indo‐Gangetic Plains, Journal of Human Development and Capabilities, 12(2), pp. 283–302.</ref><ref>{{cite news|url=https://blogs.wsj.com/indiarealtime/2013/07/25/how-to-read-indias-poverty-stats/|author=Anant Vijay Kala|title=How to read India's poverty stats?|work=]|date=25 July 2013|access-date=16 August 2017}}</ref> Inside India, both income-based poverty definition and consumption-based poverty statistics are in use.<ref>Krishna & Shariff (2011), The irrelevance of national strategies? Rural poverty dynamics in states and regions of India, 1993–2005. World Development, 39(4), pp. 533–549.</ref> Outside India, the World Bank and institutions of the United Nations use a broader definition to compare poverty among nations, including India, based on purchasing power parity (PPP), as well as nominal relative basis.<ref>Chandy, L., & Gertz, G. (2011), Poverty in numbers: The changing state of global poverty from 2005 to 2015, Brookings Institution</ref><ref> The World Bank (2009).</ref> Each state in India has its own poverty threshold to determine how many people are below its poverty line and to reflect regional economic conditions. These differences in definitions yield a complex and conflicting picture about poverty in India, both internally and when compared to other developing countries of the world.<ref name="sd2014">{{cite news|url=http://www.ft.com/intl/cms/s/0/091808e0-d6da-11e3-b95e-00144feabdc0.html#axzz34f4iVmaC |archive-url=https://ghostarchive.org/archive/HXk8V |archive-date=11 December 2022 |url-access=subscription |url-status=live|title=World Bank eyes biggest global poverty line increase in decades|last=Donnan|first=Shawn|date=9 May 2014|work=Financial Times}}</ref> | |||
According to the World Bank, India accounted for the world's largest number of poor people in 2012 using revised methodology to measure poverty, reflecting its massive population. However, in terms of percentage, it scored somewhat lower than other countries holding large poor populations.<ref>{{cite web|url=https://www.hindustantimes.com/business/india-s-poverty-rate-lowest-among-countries-with-poor-populations/story-UUrEApaBqRZth6EzRdRK6K.html|title=India is home to world's largest poor population|date=5 October 2015|website=Hindustan Times}}</ref> In July 2018, ], a Vienna-based think tank, reported that a minimal 5.3% or 70.6 million Indians lived in extreme poverty compared to 44% or 87 million Nigerians. In 2019, Nigeria and Congo surpassed India in terms of total population earning below $1.9 a day.<ref>{{cite news|url=https://www.washingtonpost.com/news/worldviews/wp/2018/07/10/india-is-no-longer-home-to-the-largest-number-of-poor-people-in-the-world-nigeria-is/|title=India is no longer home to the largest number of poor people in the world. Nigeria is.|access-date = 5 February 2019}}</ref><ref>{{cite web|url=https://worldpoverty.io|title=World Poverty Clock|access-date = 5 February 2019}}</ref> Although India is expected to meet the United Nations' ] on extreme poverty in due time, a very large share of its population lives on less than $3.2 a day, putting India's economy safely into the category of lower middle income economies. | |||
''Mass Hunger'' | |||
As with many countries,<ref>Gordon Fisher, Social Security Bulletin, Vol 55, No 4 (Winter 1992), US Government. Retrieved 16 August 2017.</ref> poverty was historically defined and estimated in India using a sustenance food standard. This methodology has been revised. India's current official poverty rates are based on its Planning Commission's data derived from so-called Tendulkar methodology.<ref>Panagariya & Mukim (2014), A comprehensive analysis of poverty in India. Asian Development Review, 31(1), pp. 1–52.</ref> It defines poverty not in terms of annual income, but in terms of consumption or spending per individual over a certain period for a basket of essential goods. Furthermore, this methodology sets different poverty lines for rural and ]s. Since 2007, India has set its official threshold at {{INR}} 26 a day ($0.43) in rural areas and about {{INR}} 32 per day ($0.53) in urban areas.<ref name=itodaypov07>{{cite news|url=http://indiatoday.intoday.in/story/planning-commission-bpl-earn-rs-25-a-day-india/1/152084.html|title=Not poor if you earn Rs.32 a day: Planning Commission|work=India Today|date=21 September 2011|access-date=16 August 2017}}</ref> While these numbers are lower than the World Bank's $1.25 per day ''income''-based definition, the definition is similar to China's US$0.65 per day official poverty line in 2008.<ref>Chen and Ravallion, Policy Research Working Paper 4621, The World Bank (2008), page 9.</ref> | |||
British policies in India exacerbated weather conditions to lead to mass famines which, when taken together, lead to between 30 to 60 million deaths from starvation in the Indian colonies. Community grain banks were forcibly disabled, land was converted from food crops for local consumption to cotton, opium, tea, and grain for export, largely for animal feed. | |||
In summary, deindustrialization, declining terms of trade, and the periodic mass misery of man-made famines are the major ways in which colonial government destroyed development in India and held it back for centuries. | |||
The World Bank's international poverty line definition is based on purchasing power parity basis, at $1.25 per day.<ref>Chen & Ravallion (2013), More Relatively‐Poor People in a Less Absolutely‐Poor World, Review of Income, Wealth, 59(1), pp. 1–28.</ref><ref>Alkire & Sumner (2013), , ''Development'', 56(1), pp. 46–51.</ref> This definition is motivated by the fact that the price of the same goods and services can differ significantly when converted into local currencies around the world. A realistic definition and comparison of poverty must consider these differences in costs of living, or must be on purchasing power parity (PPP) basis. On this basis, currency fluctuations and nominal numbers become less important, the definition is based on the local costs of a basket of essential goods and services that people can purchase. By World Bank's 2014 PPP definition, India's poverty rate is significantly lower than previously believed.<ref name=sd2014/> | |||
;Mixed, semi-economic and non-economic measures | |||
'''The Neoliberal View''' | |||
As with economic measures, there are many mixed or non-economic measures of poverty and experts contest which one is most appropriate for India. For example, Dandekar and Rath in 1971 suggested a measure of poverty rate that was based on number of calories consumed.<ref>Paul, S. (1989), A model of constructing the poverty line, Journal of Development Economics, 30(1), pp. 129–144</ref> In 2011, Alkire et al. suggested a poverty rate measure so-called Multi-dimensional Poverty Index (MPI), which only puts a 6.25% weight to assets owned by a person and places 33% weight on education and number of years spent in school.<ref name=ophimpi/> These non-economic measures remain controversial and contested as a measure of poverty rate of any nation, including India.<ref>Sumner (2004), Economic Well-being and Non-economic Well-being, A Review of the Meaning and Measurement of Poverty, {{ISBN|92-9190-617-4}}</ref><ref>Appleton (2001), 'The Rich Are Just Like Us, Only Richer': Poverty Functions or Consumption Functions?, Journal of African Economies, 10(4), pp. 433–469.</ref> | |||
In 2023, the ] published the ''National Multidimensional Poverty Index: A Progress Review 2023''.<ref>{{cite news|title=Niti Aayog report claims decrease in multidimensional poverty|url= | |||
* ] and ], arrising in part from protectionist policies pursued till 1991 that prevented high foreign investment. Poverty also decreased from the early 80s to 1990 significantly however<ref name="Datt-9">{{cite book | author=Datt, Ruddar & Sundharam, K.P.M. | title=Indian Economy | pages = 367,369,370 | chapter = 22}}</ref><ref name="survey"/> | |||
https://www.thehindu.com/news/national/niti-aayog-report-claims-decrease-in-multidimensional-poverty/article67091078.ece|work=The Hindu|date= | |||
* Lack of property rights. The right to property is not a fundamental right in India. | |||
17 July 2023|accessdate=10 May 2024}}</ref> The percentage of the total population who are multidimensionally poor in each State and Union Territory and the percentage point change in the headcount ratio between 2015-16 and 2019-21 are given below:<ref>{{cite web|title=National Multidimensional Poverty Index: A Progress Review 2023|url= | |||
* Over-reliance on agriculture. There is a surplus of labour in agriculture. Farmers are a large vote bank and use their votes to resist reallocation of land for higher-income industrial projects. While services and industry have grown at double digit figures, agriculture growth rate has dropped from 4.8% to 2%. Neoliberals tend to view food security as an unnecessary goal compared to purely financial economic growth. | |||
https://www.niti.gov.in/sites/default/files/2023-07/National-Multidimentional-Poverty-Index-2023-Final-17th-July.pdf | |||
|publisher=NITI Aayog|accessdate=10 May 2024}}</ref> | |||
{| class="wikitable sortable collapsible" style="margin-left:auto;margin-right:auto;text-align: center" | |||
|- | |||
! State or Union Territory | |||
! % of Population who are multidimensionally poor <br />NFHS-5 (2019-21) | |||
! % of Population who are multidimensionally poor <br />NFHS-4 (2015-16) | |||
! Percentage point change in headcount ratio between 2015-16 and 2019-21 | |||
|- | |||
| ] || 6.06 || 11.77 || -5.71 | |||
|- | |||
| ]|| 13.76|| 24.23 || -10.48 | |||
|- | |||
| ] || 19.35 || 32.65 || -13.30 | |||
|- | |||
| ] || 33.76 || 51.89 || -18.13 | |||
|- | |||
| ] || 16.37 ||29.90 || -13.53 | |||
|- | |||
| ] || 0.84 || 3.76 || -2.92 | |||
|- | |||
| ] || 11.66 || 18.47 || -6.81 | |||
|- | |||
| ] || 7.07 || 11.88 || -4.81 | |||
|- | |||
| ] || 4.93 || 7.59 || -2.65 | |||
|- | |||
| ] || 28.81 || 42.10 || -13.29 | |||
|- | |||
| ] || 7.58 || 12.77 || -5.20 | |||
|- | |||
| ] || 0.55 || 0.70 || -0.15 | |||
|- | |||
| ] || 20.63 || 36.57 || -15.94 | |||
|- | |||
| ] || 7.81 || 14.80 || -6.99 | |||
|- | |||
| ] || 8.10 || 16.96 || -8.86 | |||
|- | |||
| ] || 27.79 || 32.54 || -4.75 | |||
|- | |||
| ] || 5.30 || 9.78 || -4.48 | |||
|- | |||
| ] || 15.43 || 25.16 || -9.73 | |||
|- | |||
| ] || 15.68 || 29.34 || -13.65 | |||
|- | |||
| ] || 4.75 || 5.57 || -0.82 | |||
|- | |||
| ] || 15.31 || 28.86 || -13.56 | |||
|- | |||
| ] || 2.60 || 3.82 || -1.21 | |||
|- | |||
| ] || 2.20 || 4.76 ||-2.56 | |||
|- | |||
| ] || 5.88 || 13.18 || -7.30 | |||
|- | |||
| ] || 13.11 || 16.62 || -3.50 | |||
|- | |||
| ] || 22.93 || 37.68 || -14.75 | |||
|- | |||
| ] || 9.67 || 17.67 || -8.00 | |||
|- | |||
| ] || 11.89 || 21.29 || -9.41 | |||
|- | |||
| ] || 2.30 || 4.29 || -1.99 | |||
|- | |||
| ] || 3.52 || 5.97 || -2.46 | |||
|- | |||
| ] || 9.21 || 19.58 || -10.38 | |||
|- | |||
| ] || 4.80 || 12.56 || -7.76 | |||
|- | |||
| ] || 3.53 || 12.70 || -9.17 | |||
|- | |||
| ] || 3.43 || 4.44 || -1.02 | |||
|- | |||
| ] || 1.11 || 1.82 || -0.71 | |||
|- | |||
| ] || 0.85 || 1.71 || -0.87 | |||
|- | |||
| ''']''' || '''14.96''' || '''24.85''' || '''-9.89''' | |||
|} | |||
{| class="wikitable floatright" style="text-align: centre;" | |||
There are also a variety of more direct technical factors: | |||
|+ National poverty lines comparison<br /><small>(Note: this is historical data, not current)</small> | |||
* About 60% of the population depends on agriculture whereas the contribution of agriculture to the GDP is about 28%. | |||
|- | |||
* High population growth rate, although demographers generally agree that this is a symptom rather than cause of poverty. | |||
!Country | |||
!Poverty line<br />(per day) | |||
!Year | |||
!Reference | |||
|- | |||
| {{flag|India}} | |||
| 32 rupees ($0.5) | |||
| 2017 | |||
|<ref name=itodaypov07/> | |||
|- | |||
| {{flag|Argentina}} | |||
| 481 pesos ($11.81) | |||
| 2017 | |||
|<ref>{{cite news |url=http://www.eleconomista.com.ar/2017-07-linea-pobreza-14811-indigencia-6045/ |title=La línea de la pobreza subió a $ 14.811 y la de indigencia a $ 6.045 |language=es |trans-title=The poverty line rose to $ 14,811 and the poverty line to $ 6,045 |work=El Economista |date=25 July 2017 |access-date=31 December 2017}}</ref> | |||
|- | |||
| {{flag|China}} | |||
| 6.3 yuan ($1) | |||
| 2011 | |||
|<ref> China (16 November 2011)</ref> | |||
|- | |||
| {{flag|Nigeria}} | |||
| 65 naira ($0.4) | |||
| 2011 | |||
|<ref> JICA Japan (March 2011) Retrieved 16 August 2017.</ref> | |||
|- | |||
| {{flag|United States}} | |||
| $14<ref>the official poverty line in the United States varies with number of people in a household, $13 per day is per person in a family of four</ref> | |||
| 2005 | |||
|<ref>{{cite web |author=Martin Ravallion |date=January 2010 |url=http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/0,,contentMDK:22510787~pagePK:64165401~piPK:64165026~theSitePK:469382,00.html |title=World Bank's $1.25/day poverty measure- countering the latest criticisms |archive-url=https://web.archive.org/web/20141210022841/http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/0,,contentMDK:22510787~pagePK:64165401~piPK:64165026~theSitePK:469382,00.html |archive-date=10 December 2014 |url-status=dead |publisher=The World Bank |website=Research at the World Bank |quote=... the official poverty line used in the United States is $13 a day in 2005 (per person, for a family of four).}}</ref><ref name=hhspovline/> | |||
|} | |||
;Comparison with alternate international definitions | |||
India determines its household poverty line by summing up the individual per capita poverty lines of the household members. This practice is similar to many developing countries, but different from developed countries such as the United States who adjusts their poverty line on an incremental basis per additional household member. For example, in the United States, the poverty line for a household with just one member was set at $11,670 per year for 2014, while it was set at $23,850 per year for a 4-member household (or $5963 per person for the larger household).<ref name=hhspovline> US Department of Health and Human Services (2014)</ref> The rationale for the differences arise from the economic realities of each country. In India, households may include surviving grandparents, parents, and ]. They typically do not incur any or significant rent expenses every month particularly in rural India, unlike housing in mostly urban developed economies. The cost of food and other essentials are shared within the household by its members in both cases. However, a larger portion of a monthly expenditure goes to food in poor households in developing countries,<ref> Asian Development Bank (April 2012), {{ISBN|978-92-9092-666-5}}, pp. 9–11.</ref> while housing, conveyance, and other essentials cost significantly more in developed economies. | |||
For its current poverty rate measurements, India calculates two benchmarks. The first includes a basket of goods, including food items but excluding the implied value of home, value of any means of conveyance or the economic value of other essentials created, grown or used without a financial transaction, by the members of a household. The second poverty line benchmark adds rent value of residence as well as the cost of conveyance, but nothing else, to the first benchmark.<ref name=povmethod2009> {{Webarchive|url=https://web.archive.org/web/20110904224037/http://planningcommission.nic.in/reports/genrep/rep_pov.pdf |date=4 September 2011 }} Govt of India (2009), pp. 11–27.</ref> This practice is similar to those used in developed countries for non-cash income equivalents and a poverty line basis.<ref>Gordon Fisher, Social Security Bulletin, Vol 55, No 4 (Winter 1992), US Government, pp. 9.</ref><ref>Smeeding et al., Review of Income and Wealth, Series 39, Number 3. September 1993, pp. 229–256.</ref> | |||
And a few cultural ones have been proposed: | |||
* The caste system, under which hundreds of millions of Indians were kept away from educational, ownership, and employment opportunities, and subjected to violence for "getting out of line." . British rulers encouraged caste privileges and customs were encouraged, at least before the 20th century. | |||
India's proposed but not yet adopted official poverty line, in 2014, was {{INRConvert|972}} a month in rural areas or {{INRConvert|1407}} a month in cities. The current poverty line is 1,059.42 Indian Rupees (62 ] USD) per month in rural areas and 1,286 Indian rupees (75 ] USD) per month in urban areas.<ref>{{cite news|url=https://www.wsj.com/articles/new-poverty-formula-proves-test-for-india-1406487289|title=New Poverty Formula Proves Test for India|author=Raymond Zhong|work=The Wall Street Journal|date=27 July 2014|access-date=16 August 2017}}</ref> India's nationwide average poverty line differs from each state's poverty line. For example, in 2011–2012, ] had its highest poverty line of {{INRConvert|1301}} a month in rural and {{INRConvert|1309}} a month in urban areas, while ] had the lowest poverty thresholds of {{INRConvert|695}} a month for rural and {{INRConvert|861}} a month for its urban areas.<ref> Government of India, p. 5.</ref> | |||
Despite this, India currently adds 40 million people to its middle class every year. Analysts such as the founder of "Forecasting International", ] writes that an estimated 300 million Indians now belong to the middle class; one-third of them have emerged from poverty in the last ten years. At the current rate of growth, a majority of Indians will be middle-class by ]. Literacy rates have risen from 52 percent to 65 percent in the same period.<ref></ref> | |||
==Poverty prevalence and estimates== | |||
==Historical trends in poverty statistics== | |||
During the 19th and early 20th century, when the country was under ], parts of India saw a widespread increase in poverty.<ref name=troy>T. Roy, London School of Economics, ''Globalization, Factor Prices and Poverty in Colonial India'', Australian Economic History Review, Vol. 47, No. 1, pp. 73–94 (March 2007)</ref><ref>Sarkar (1983), The colonial economy, In: S. Sarkar (Editor) Modern India: 1885–1947, Macmillan, {{ISBN|978-0333904251}}</ref> Beginning from the 18th century onwards, British officials in India implemented a series of policies which resulted in the ] by reducing garments and other finished products manufactured by artisans in India. Instead, they imported these products from Britain's expanding industry due to the many industrial innovations of the 19th century. Additionally, the colonial authorities simultaneously encouraged the conversion of more land into farms and more agricultural exports from India.<ref>Thorner (1962), 'Deindustrialization' in India, 1881–1931, In: D. Thorner, and A. Thorner (Editors), Land and Labour in India, {{ISBN|978-8180280214}}</ref><ref name=rh97/> Eastern regions of India along the ] river plains, such as those now known as eastern ], ], ] and ],<ref>These were variously called or were parts of United Provinces, Northwestern Provinces, Oudh, Behar, Bengal and Rewa in 19th century South Asia</ref> were dedicated to producing poppy and opium. These items were then exported to southeast and east Asia, particularly China. The East India Company initially held an exclusive monopoly over these exports, and the colonial British institutions later did so as well.<ref>Kranton and Swamy, ''Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India'', American Economic Review, 98(3): 967–989.</ref> | |||
The proportion of India's population below the poverty line has fluctuated widely in the past, but the overall trend has been downward. However, there have been roughly three periods of trends in income poverty. | |||
The economic importance of this shift from industry to agriculture in India was large;<ref>Allen (1853), {{Google books|ZNT3ohiMQaMC|The opium trade: a sketch of its history, extent, effects as carried on in India and China}}, J.P. Walker</ref> by 1850, it created nearly 1,000 square kilometres of poppy farms India's fertile Ganges plains. This consequently led to two opium wars in Asia, with the ] fought between 1856 and 1860. After China agreed to be a part of the opium trade, the colonial government dedicated more land exclusively to poppy.<ref name=rh97/> The opium agriculture in India rose from 1850 through 1900, when over 500,000 acres of the most fertile Ganges basin farms were devoted to poppy cultivation.<ref name=ukparliament1890>{{Google books|704zAQAAMAAJ|The Parliamentary Debates, Volume 348|page=1058}}, Hansard's, HM Government, Great Britain (14 August 1890), pp. 1054–1061.</ref> Additionally, opium processing factories owned by colonial officials were expanded in ] and ], and shipping expanded from Bengal to the ports of East Asia such as Hong Kong, all under exclusive monopoly of the British. By the early 20th century, 3 out of 4 Indians were employed in agriculture, famines were common, and food consumption per capita declined in every decade.<ref name=am1970>]. (1970), '''', PSL Quarterly Review, 23(92), pp. 31–81.</ref> The issue of ] and its effects on Indian poverty was raised by Anglo-Irish ] politician ] in the ]; in 1778, Burke began an ] against ] officail ] on charges including mismanagement of the Indian economy; Hastings was ultimately cleared of the charges in 1785. Indian historian ] argued the economy established by the East India Company in 18th-century Bengal was a form of plunder and a catastrophe for the traditional economy of India, depleting food and money stocks and imposing high taxes that helped cause the famine of 1770, which killed a third of Bengali population.<ref>Rajat Kanta Ray, "Indian Society and the Establishment of British Supremacy, 1765–1818," in ''The Oxford History of British Empire: vol. 2, The Eighteenth Century'' ed. by P. J. Marshall, (1998), pp 508–29.</ref> In London, the late 19th century British parliament debated the repeated incidence of famines in India, and the impoverishment of Indians due to this diversion of agriculture land from growing food staples to growing poppy for opium export under orders of the colonial British empire.<ref name=rh97>Richard Hunt (1997), To End Poverty – The Starvation of the Periphery by the Core, Oxford, UK, {{ISBN|978-0952887201}}, pp. 145–148.</ref><ref name=ukparliament1890/> | |||
'''1950 to mid-1970s''': Income poverty reduction shows no discernible trend. In 1951, 47% of India's rural population was below the poverty line. The proportion went up to 64% in 1954-55; it came down to 45% in 1960-61 but in 1977-78, it went up again to 51%. | |||
{{multiple image | |||
'''Mid-1970s to 1990''': Income poverty declined significantly between the mid-1970s and the end of the 1980s. The decline was more pronounced between 1977-78 and 1986-87, with rural income poverty declining from 51% to 39%. It went down further to 34% by 1989-90. Urban income poverty went down from 41% in 1977-78 to 34% in 1986-87, and further to 33% in 1989-90. | |||
| direction = vertical | |||
| width = 225 | |||
'''After 1991''': This post-economic reform period evidenced both setbacks and progress. Rural income poverty increased from 34% in 1989-90 to 43% in 1992 and then fell to 37% in 1993-94. Urban income poverty went up from 33.4% in 1989-90 to 33.7% in 1992 and declined to 32% in 1993-94 Also,NSS data for 1994-95 to 1998 show little or no poverty reduction, so that the evidence till 1999-2000 was that poverty, particularly rural poverty, had increased post-reform. However, the official estimate of poverty for 1999-2000 was 26.1%, a dramatic decline that led to much debate and analysis. This was because for this year the NSS had adopted a new survey methodology that led to both higher estimated mean consumption and also an estimated distribution that was more equal than in past NSS surveys. The latest NSS survey for 2004-05 is fully comparable to the surveys before 1999-2000 and shows poverty at 48.3% in rural areas, 25.7% in urban areas and 27.5% for the country as a whole. Thus, poverty has declined after 1998, although it is still being debated whether there was any significant poverty reduction between 1989-90 and 1999-00. The latest NSS survey was so designed as to also give estimates roughly, but not fully, comparable to the 1999-2000 survey. These suggest that most of the decline in rural poverty over the period during 1993-94 to 2004-05 actually occurred after 1999-2000. | |||
| footer = Poverty was intense during colonial era India. Numerous famines and epidemics killed millions of people each.<ref name=murton>Murton, Brian (2000), "VI.4: Famine", The Cambridge World History of Food 2, Cambridge, New York, pp. 1411–27</ref><ref>Singh (2002), Population And Poverty, Mittal, {{ISBN|978-81-7099-848-8}}</ref> Upper image is from 1876 to 1879 famine in South of British India that starved and killed over 6 million people, while lower image is of child who starved to death during the Bengal famine of 1943. | |||
| image2 = Bengal famine 1943 photo.jpg | |||
In summary, the official poverty rates recorded by NSS are: | |||
| alt2 = Bengal famine 1943 | |||
{| class="wikitable" | |||
| image1 = 1876 1877 1878 1879 Famine Genocide in India Madras under British colonial rule 2.jpg | |||
|- | |||
| alt1 = Madras famine 1876 | |||
!Year !! Round !! Poverty Rate (%) !! Poverty Reduction per year(%) | |||
}} | |||
|- | |||
These colonial policies moved unemployed artisans into farming, and transformed India into a region increasingly abundant in land, unskilled labour, and low productivity. This consequently made India scarce in skilled labour, capital and knowledge.<ref name=troy/><ref name=am1970/> On an inflation adjusted 1973 rupee basis, the average income of an Indian agrarian labourer was Rs. 7.20 per year in 1885, against an inflation adjusted poverty line of Rs. 23.90 per year. Thus, not only was the average income below the poverty line, but the intensity of poverty was also severe. The intensity of poverty increased from 1885 to 1921, before being reversed. However, the absolute poverty rates continued to be very high through the 1930s.<ref name=troy/><ref>Reddy (1986), Trends in agricultural wages in some south Indian districts: 1800–1980, Indian Journal of Labour Economics, 28, pp. 307–349</ref> The colonial policies on taxation and its recognition of land ownership claims of ]s and ]s, or Mughal era nobility, made a minority of families wealthy. Additionally, these policies weakened the ability of poorer peasants to command land and credit. The resulting rising ] and stagnant real wages intensified poverty.<ref name=troy/><ref>Raychaudhuri (1982), Non-agricultural production: Mughal India, In: T. Raychaudhuri, and I. Habib, (Editors), The Cambridge Economic History of India, Cambridge University Press.</ref> | |||
|1977-78 || 32 || 51.3 || | |||
|- | |||
The National Planning Committee of 1936 noted the appalling poverty of undivided India.<ref name=pcomindia/> | |||
| 1983 || 38 || 44.5 || 1.3 | |||
|- | |||
{{blockquote|(...) there was lack of food, of clothing, of housing and of every other essential requirement of human existence... the development policy objective should be to get rid of the appalling poverty of the people.|Nehru, ''The Discovery of India'', (1946)}} | |||
| 1987-88 || 43 || 38.9 || 1.2 | |||
|- | |||
The National Planning Committee, notes Suryanarayana, then defined goals in 1936 to alleviate poverty by setting targets in terms of nutrition (2400 to 2800 calories per adult worker), clothing (30 yards per capita per annum) and housing (100 sq. ft per capita).<ref name=pcomindia>{{cite web|url=http://planningcommission.nic.in/reports/genrep/surya.pdf|title=Nutritional Norms for Poverty: Issues and Implications|author=M.H. Suryanarayana|publisher=Indira Gandhi Institute of Development Research|access-date=16 August 2017}}</ref> This method of linking poverty as a function of nutrition, clothing and housing continued in India after it became independent from British colonial empire. | |||
| 1993-94 || 50 || 36.0 || 0.5 | |||
|- | |||
These poverty alleviation goals were theoretical, with administrative powers resident in the British Empire. Poverty ravaged India. In 1943, for example, despite rising agricultural output in undivided South Asia, the ] killed millions of Indians from starvation, disease and destitution. Destitution was so intense in Bengal, Bihar, eastern Uttar Pradesh, Jharkhand and Orissa, that entire families and villages were "wiped out" of existence. Village artisans, along with sustenance farming families, died from lack of food, malnutrition and a wave of diseases.<ref name=asen>A Sen (1983), Poverty and Famines: An Essay on Entitlement and Deprivation, Oxford University Press, {{ISBN|978-0198284635}}</ref> The 1943 famine was not an isolated tragedy. Devastating famines impoverished India every 5 to 8 years in the late 19th century and the first half of the 20th century. Between 6.1 and 10.3 million people starved to death in British India during the 1876–1879 famine, while another 6.1 to 8.4 million people died during the 1896–1898 famine.<ref name=rpmw>{{cite book |editor1=Richard Peet |editor2=Michael Watts |title=Liberation Ecologies: Environment, Development and Social Movements |date=2004 |location=London |publisher=Routledge |isbn=978-0415312363 |pages=44–49}}</ref> ] reported that 19 million people died from starvation and the consequences of extreme poverty in British India between 1896 and 1900.<ref>{{cite book |last1=Davis |first1=Mike |title=Late Victorian Holocausts: El Niño Famines and the Making of the Third World |date=2001 |publisher=Verso |isbn=978-1859847398 |page= |url=https://archive.org/details/latevictorianhol00dav_wbr/page/7 }}</ref> Sir MacDonnell observed the suffering and poverty in 1900, and noted, "people died like flies" in Bombay.<ref>Romesh Dutt (1901), , London</ref> | |||
| 1999-2000 || 55 || (26.09) || not comparable | |||
|- | |||
=== After Independence === | |||
| 2004-2005 || 61 || 27.5 || 0.8 | |||
====1950s==== | |||
{| class="wikitable floatright" style="text-align: centre;" | |||
|- | |||
!Year<ref name=minhas1960s/> | |||
!Total<br />Population<br />(millions) | |||
!50%lived on<br />({{INR}} / year) | |||
!95% lived on<br />({{INR}} / year) | |||
|- | |||
| 1956–57 | |||
| 359 | |||
| 180 | |||
| 443 | |||
|- | |||
| 1961–62 | |||
| 445 | |||
| 204 | |||
| 498 | |||
|- | |||
| 1967–68 | |||
| 514 | |||
| 222 | |||
| 512 | |||
|} | |} | ||
Minhas published his estimates of poverty rates in 1950s India as cyclical and a strong function of each year's harvest. Minhas disagreed with the practice of using calories as the basis for poverty estimation and proposed a poverty line based on real expenditure per year (Rs 240 per annum). In 1956–57, a good harvest year, he computed India's poverty rate to be 65% (215 million people).<ref name=minhas1960s>B.S. Minhas, , Indian Economic Review New Series, Vol. 5, No. 1 (APRIL 1970), pp. 97–128</ref><ref>B.S. Minhas (1974), {{Google books|PSsuAAAAMAAJ|Planning and the Poor}}, Chand, pp. 71–76.</ref> For 1960, Minhas estimated the poverty to be 59%.<ref name=gsf/> | |||
====1960s==== | |||
A Working Group was formed in 1962 to attempt to set a poverty line for India.<ref>{{cite web |date=22 November 2013 |url=http://www.thestatesman.net/news/26193-poverty-puzzle.html |title=Poverty Puzzle |url-status=dead |archive-url=https://archive.today/20140715125023/http://www.thestatesman.net/news/26193-poverty-puzzle.html |archive-date=15 July 2014 |work=The Statesman}}</ref><ref name=":0">{{cite web |url=http://planningcommission.nic.in/reports/publications/pub93_nopoors.pdf |title=A market at the bottom of the pyramid? |author=Arvind Singhal |date=28 August 2008 |access-date=16 August 2017}}</ref> This Working Group used calories required for survival, and income needed to buy those calories in different parts of rural India, to derive an average poverty line of Rs. 20 per month at 1960–61 prices.<ref name=Joshi>{{cite web|title=Conceptualisation, Measurement and Dimensional Aspects of Poverty in India, by P. D. Joshi, Department of Statistics, Ministry of Planning and Programme Implementation, India|last=Joshi|first=P. D. (Department of Statistics, Ministry of Planning and Programme Implementation, India)|work=Seminar on Poverty Statistics Santiago 7–9 May 1997 |publisher=] Expert Group on Poverty Statistics |url=http://www.ibge.gov.br/poverty/pdf/india.pdf |access-date=16 August 2017}}</ref> | |||
Estimates of poverty in India during the 1960s varied widely. Dandekar and Rath, on the behalf of then Indian government, estimated that the poverty rate in 1960s remained generally constant at 41%. Ojha, in contrast, estimated that there were 190 million people (44%) in India below official poverty limit in 1961, and that this below-poverty line number increased to 289 million people (70%) in 1967. Bardhan also concluded that Indian poverty rates increased through the 1960s, reaching a high of 54%.<ref name=gsf>Gary S. Fields, {{Google books| |Poverty, Inequality, and Development}}, {{ISBN|978-0521298520}}, pp. 204–210</ref><ref>P. Sarangi, Consumption, Poverty And Inequality, {{ISBN|978-8183562645}}, pp. 188–200</ref> Those above the 1960s poverty level of Rs 240 per year, were in fragile economic groups as well and not doing well either. Minhas estimated that 95% of India's people lived on Rs 458 per year in 1963–64, while the richest 5% lived on an average of Rs 645 per year (all numbers inflation adjusted to 1960–61 Rupee).<ref name=minhas1960s/> | |||
====1970s – 1980s==== | |||
Dandekar and Rath<ref>{{cite journal|url=http://www.epw.in/journal/1971/2/special-articles/poverty-india.html|title=Poverty in India |journal=Economic and Political Weekly|volume=6|issue=2|date=9 January 1971|access-date=16 August 2017|url-access=subscription }}</ref> in 1971 used a daily intake of 2,250 calories per person to define the poverty line for India. Using ] data regarding household expenditures for 1960–61, they determined that in order to achieve this food intake and other daily necessities, a rural dweller required an annual income of {{INR}} 170.80 per year ({{INR}} 14.20 per month, adjusted to 1971 Rupee). An urban dweller required {{INR}} 271.70 per year ({{INR}} 22.60 per month). They concluded from this study that 40 percent of rural residents and 50 percent of urban residents were below the poverty line in 1960–61.<ref>{{cite web|url=http://www.fao.org/docrep/008/af349e/af349e0k.htm|title=Proceedings of the workshop on forests for poverty reduction: changing role for research, development and training institutions|website=Fao.org|access-date=16 August 2017}}</ref> | |||
Poverty alleviation has been a driver for India's ]'s Task Force on Projections of Minimum Needs and Effective Consumption Demand of the Perspective Planning Division. This division, in 1979, took into account differences in calorie requirements for different age groups, activity levels, and sex. They determined that the average rural dweller needed around 2400 calories, and those in urban areas required about 2100 calories per person per day. To satisfy the food requirement, the Task Force estimated that a ] in 1973–74 of Rs.49.09 per person per month in rural areas and Rs.56.64 in urban areas was appropriate measure to estimate its poverty line.<ref>{{cite web|title=Report of The Expert Group on Estimation of Proportion and Number of Poor|publisher=Perspective Planning Division, Planning Commission |url=http://planningcommission.nic.in/reports/publications/pub93_nopoors.pdf|access-date=16 August 2017}}</ref> | |||
Poverty remained stubbornly high in India through the 1970s and 1980s. It created slogans such as '']'' (meaning eliminate poverty) for political campaigns, during elections in early 1970s through the 1980s.<ref>Banerjee & Somanathan (2007), The political economy of public goods: Some evidence from India, Journal of development Economics, 82(2), pp. 287–314</ref> Rural poverty rate exceeded 50%, using India's official poverty line for 1970s.<ref>Chen, S., G. Datt, and M. Ravallion (1994), Is poverty increasing in the developing world?, Review of Income and Wealth, 40 (4): 359–376.</ref><ref name=datt1998>Datt (1998), , IFPRI, Washington D.C.. Retrieved 16 August 2017.</ref> | |||
Additionally, in 1976, the Indian government passed the Bonded Labor System Act in an effort to end ], a practice which contributes to generational poverty.<ref name=":1">{{Citation|last1=Acharya|first1=Arun Kumar|title=Practices of Bonded Labour in India: Forms of Exploitation and Human Rights Violations|date=2019|url=http://sk.sagepub.com/reference/the-sage-handbook-of-human-trafficking-and-modern-day-slavery/i1223.xml|work=The SAGE Handbook of Human Trafficking and Modern Day Slavery|pages=126–138|publisher=SAGE Publications Ltd|doi=10.4135/9781526436146.n6|access-date=2020-05-03|last2=Naranjo|first2=Diego López|isbn=9781473978553|s2cid=169418671}}</ref> Nevertheless, this system is still in place today due to weak enforcement of this law.<ref name=":1" /> | |||
====1990s==== | |||
Another Expert Group was instituted in 1993, chaired by Lakdawala, to examine poverty line for India. It recommended that regional economic differences are large enough that poverty lines should be calculated for each state. From then on, a standard list of commodities were drawn up and priced in each state of the nation, using 1973–74 as a base year. This basket of goods could then be re-priced each year and comparisons made between regions. The Government of India began using a modified version of this method of calculating the poverty line in India.<ref>{{cite web|title = Report of the Expert Group to Recommend the Detailed Methodology for Identification of Families Living Below Poverty Line in the Urban Areas|publisher=Planning Commission|url=http://planningcommission.nic.in/reports/genrep/rep_hasim1701.pdf|access-date=16 August 2017}}</ref> | |||
There are wide variations in India's poverty estimates for 1990s, in part from differences in the methodology and in the small sample surveys they poll for the underlying data. A 2007 report for example, using data for late 1990s, stated that 77% of Indians lived on less than {{INR}} 20 a day (about US$0.50 per day).<ref name="Goverment of India">{{cite web|url=http://nceuis.nic.in/Condition_of_workers_sep_2007.pdf|title=Report on Condition of Work and Promotion of Livelihoods in the unorganised sector.|access-date=16 August 2017|archive-url=https://web.archive.org/web/20160330080654/http://nceuis.nic.in/condition_of_workers_sep_2007.pdf|archive-date=30 March 2016|url-status=dead|df=dmy-all}}</ref> In contrast, S.G.Datt estimated India's national poverty rate to be 35% in 1994, at India's then official poverty line of Rs 49 per capita, with consumer price index adjusted to June 1974 rural prices.<ref name=datt1998/> | |||
====2000s==== | |||
The Saxena Committee report, using data from 1972 to 2000, separated calorific intake apart from nominal income in its economic analysis of poverty in India, and then stated that 50% of Indians lived below the poverty line.<ref>{{cite news|url=http://www.thehindu.com/business/Economy/Calorie-intake-criterion-puts-50-per-cent-Indians-below-poverty-line/article16882647.ece|title=Calorie intake criterion puts 50 per cent Indians below poverty line|location=Chennai, India|work=The Hindu|date=19 September 2009|access-date=16 August 2017}}</ref> The Planning Commission of India, in contrast, determined that the poverty rate was 39%. | |||
The National Council of Applied Economic Research estimated that 48% of the Indian households earn more than {{INRConvert|90|k|1}} annually (or more than {{USD}} 3 PPP per person). According to NCAER, in 2009, of the 222 million households in India, the absolutely poor households (annual incomes below {{INRConvert|45000}}) accounted for only 15.6% of them or about 35 million (about 200 million Indians). Another 80 million households are in the income levels of {{INRConvert|45000}} to {{INRConvert|90000}} per year. These numbers are similar to World Bank estimates of the "below-the-poverty-line" households that may total about 100 million (or about 456 million individuals).<ref name="ncaer.org">{{cite web|url=http://demo.ncaer.org/downloads/MediaClips/Press/businesstandard-arvindsingal.pdf|author=Arvind Singhal|title=Arvind Singhal: A market at the bottom of the pyramid?|date=28 August 2008|access-date=16 August 2017}}</ref> | |||
The ] Committee set up to look into the people living under the poverty line in India submitted its report in November 2009.<ref>{{cite web|url=http://planningcommission.gov.in/eg_poverty.htm |title=Expert Group on Methodology for Estimation of Poverty |publisher=Planning Commission |access-date=2017-10-21}}</ref> It provided a new method of calculating the poverty line based on per capita consumption expenditure per month or day. For rural areas, it was Rs 816 per month or Rs 27 per day. For urban areas, it was Rs 1000 per month or Rs 33 per day. Using this methodology, the population below the poverty line in 2009–2010 was 354 million (29.6% of the population) and that in 2011–2012 was 269 million (21.9% of the population).<ref>{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=81151 |title=Poverty Estimates for 2009–10 |publisher=Press Information Bureau, Government of India |access-date=2017-10-21}}</ref> | |||
====Reserve Bank of India (2012)==== | |||
In its annual report of 2012, the ] named the state of ] as having the least poverty of 5.09% while the national average stood at 21.92%<ref name=rbi2192>{{cite web|url=http://www.rbi.org.in/scripts/PublicationsView.aspx?id=15283|title=Number and Percentage of Population Below Poverty Line|year=2012|publisher=Reserve Bank of India|access-date=4 April 2014|url-status=dead|archive-url=https://web.archive.org/web/20140407102043/http://www.rbi.org.in/scripts/PublicationsView.aspx?id=15283|archive-date=7 April 2014|df=dmy-all}}</ref> The table below presents the poverty statistics for rural, urban and combined percentage below poverty line (BPL) for each State or Union Territory.<ref name=rbi2192/> The <span style="background:#fcc;">highest</span> poverty statistics for each category column is coloured light red and the <span style="background:#2cc;">lowest</span> poverty statistics for each category column is coloured light Blue in the table below. | |||
{| class="wikitable sortable collapsible" style="margin-left:auto;margin-right:auto;text-align: right" | |||
|- | |||
! State or Union Territory | |||
! No. of Persons<br />(Thousands) Rural | |||
! % of Persons (Rural)<br />below poverty line | |||
! Poverty line (Rs)/month (Rural) | |||
! No. of Persons<br />(Thousands) Urban | |||
! % of Persons (Urban)<br />below poverty line | |||
! Poverty line (Rs)/month (Urban) | |||
! No. of Persons<br />(Thousands) Combined | |||
! % of Persons (Combined)<br />below poverty line | |||
|- | |||
| ] || 6180 ||10.96|| 860.00|| 1698|| 5.81|| 1009.00|| 7878 ||9.20 | |||
|- | |||
| ]|| 425|| 38.93|| 930.00|| 66 ||20.33|| 1060.00|| 491|| 34.67 | |||
|- | |||
| ] ||9206 ||33.89 ||828.00 ||921|| 30.49|| 1008.00 ||10127 ||31.98 | |||
|- | |||
| ]|| 32040|| 34.06 ||778.00|| 3775 ||31.23|| 923.00|| 35815 ||33.74 | |||
|- | |||
| ] ||8890 ||44.61|| 738.00|| 1522|| 24.75 ||style="background:#fcc;"|849.00|| 10411|| style="background:#fcc;"|39.93 | |||
|- | |||
| ] || 37|| 6.81|| 1090.00|| 38 || 4.09|| 1134.00|| 75|| 5.09 | |||
|- | |||
| ] || 7535|| 21.50 || 932.00 || 2688 || 10.14 || 1152.00 || 10223 || 16.63 | |||
|- | |||
| ] || 1942 || 11.64 || 1015.00 || 941 || 10.28 || 1169.00 || 2883 || 11.16 | |||
|- | |||
| ] || 529 || 8.48 || 913.00 || 30 || 4.33 || 1064.00 || 559 || 8.06 | |||
|- | |||
| ] || 1073 || 11.54 || 891.00 || 253 || 7.20 || 988.00 || 1327 || 10.35 | |||
|- | |||
| ] || 10409 || 40.84 || 748.00 || 2024 || 24.83 || 974.00 || 12433 || 36.96 | |||
|- | |||
| ] || 9280 || 24.53 || 902.00 || 3696 || 15.25 || 1089.00 || 12976 || 20.91 | |||
|- | |||
| ] || 1548 || 9.14 || 1018.00 || 846 || 4.97 || 987.00 || 2395 || 7.05 | |||
|- | |||
| ] || 19095 || 35.74 || 771.00 || 4310 || 21.00 || 897.00 || 23406 || 31.65 | |||
|- | |||
| ] || 15056 || 24.22 || 967.00 || 4736 || 9.12 || 1126.00 || 19792 || 17.35 | |||
|- | |||
| ] || 745 || 38.80 || 1118.00 || 278 || style="background:#fcc;"|32.59 || 1170.00 || 1022 || 36.89 | |||
|- | |||
| ] || 304 || 12.53 || 888.00 || 57 || 9.26 || 1154.00 || 361 || 11.87 | |||
|- | |||
| ] || 191 || 35.43 || 1066.00 || 37 || 6.36 || 1155.00 || 227 || 20.40 | |||
|- | |||
| ] || 276 || 19.93 || 1270.00 || 100 || 16.48 || 1302.00 || 376 || 18.88 | |||
|- | |||
| ] || 12614 || 35.69 || style="background:#fcc;"|695.00 || 1239 || 17.29 || 861.00 || 13853 || 32.59 | |||
|- | |||
| ] || 1335 || 7.66 || 1054.00 || 982 || 9.24 || 1155.00 || 2318 || 8.26 | |||
|- | |||
| ] || 8419 || 16.05 || 905.00 || 1873 || 10.69 || 1002.00 || 10292 || 14.72 | |||
|- | |||
| ] || 45 || 9.85 || 930.00 || 6 || 3.66 || 1226.00 || 51 || 8.19 | |||
|- | |||
| ] || 5923 || 15.83 || 880.00 || 2340 || 6.54 || 937.00 || 8263 || 11.28 | |||
|- | |||
| ] || 449 || 16.53 || 798.00 || 75 || 7.42 || 920.00 || 524 || 14.05 | |||
|- | |||
| ] || style="background:#fcc;"|47935 || 30.40 || 768.00 || style="background:#fcc;"| 11884 || 26.06 || 941.00 || style="background:#fcc;"|59819 || 29.43 | |||
|- | |||
| ] || 825 || 11.62 || 880.00 || 335 || 10.48 || 1082.00 || 1160 || 11.26 | |||
|- | |||
| ] || 14114 || 22.52 || 783.00 || 4383 || 14.66 || 981.00 || 18498 || 19.98 | |||
|- | |||
| ] || 4 || 1.57 || – || style="background:#2cc;"| 0 || style="background:#2cc;"|0.00 || – || 4 || style="background:#2cc;"|1.00 | |||
|- | |||
| ] || style="background:#2cc;"|0 || style="background:#2cc;"|0.00 || – || 234 || 22.31 || – || 235 || 21.81 | |||
|- | |||
| ] || 115 || style="background:#fcc;"|62.59 || – || 28 || 15.38 || – || 143 || 39.31 | |||
|- | |||
| ] || style="background:#2cc;"|0 || style="background:#2cc;"|0.00 || – || 26 || 12.62 || – || 26 || 9.86 | |||
|- | |||
| ] || 50 || 12.92 || 1145.00 || 1646 || 9.84 || 1134.00 || 1696 || 9.91 | |||
|- | |||
| ] || style="background:#2cc;"|0 || style="background:#2cc;"|0.00 || – || style="background:#2cc;"|2 || style="background:#2cc;"| 3.44 || – || style="background:#2cc;"|2 || 2.77 | |||
|- | |||
| ] || 69 || 17.06 || style="background:#2cc;"| 1301.00 || 55 || 6.30 || style="background:#2cc;"| 1309.00 || 124 || 9.69 | |||
|- | |||
| ''']''' || '''216658''' || '''25.70''' || '''816.00''' || '''53125''' || '''13.70''' || '''1000.00''' || '''269783''' || '''21.92''' | |||
|} | |||
====2010s==== | |||
The ] has reviewed its poverty definition and calculation methodologies several times over the last 25 years. In early 1990s, The World Bank anchored absolute poverty line as $1 per day. This was revised in 1993, and the absolute poverty line was set at $1.08 a day for all countries on a ] (PPP) basis, after adjusting for inflation to the 1993 US dollar. In 2005, after extensive studies of the cost of living across the world, The World Bank raised the measure for global poverty line to reflect the observed higher cost of living.<ref name=mrwb>{{cite web|title=Dollar a Day Revisited|publisher=The World Bank|year=2008|author=Martin Ravallion, Shaohua Chen and Prem Sangraula|url=http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2008/09/02/000158349_20080902095754/Rendered/PDF/wps4620.pdf}}</ref> Thereafter, the World Bank determined poverty rates from those living on less than US$1.25 per day on 2005 PPP basis, a measure that has been widely used in media and scholarly circles. | |||
In May 2014, after revisiting its poverty definition, methodology and economic changes around the world, the World Bank proposed another major revision to PPP calculation methodology, international poverty line and indexing it to 2011 US dollar.<ref name=sd2014/> The new method proposes setting poverty line at $1.78 per day on 2011 PPP basis. According to this revised World Bank methodology, India had 179.6 million people below the new poverty line, China had 137.6 million, and the world had 872.3 million people below the new poverty line on an equivalent basis as of 2013. India, in other words, while having 17.5% of total world's population, had 20.6% share of world's poor.<ref name=cnk2014>{{cite web|author=Homi Kharas|author2=Laurence Chandy|url=http://www.brookings.edu/blogs/up-front/posts/2014/05/05-data-extreme-poverty-chandy-kharas|title=What Do New Price Data Mean for the Goal of Ending Extreme Poverty?|publisher=Brookings Institution|place=Washington D.C.|date=5 May 2014|access-date=16 August 2017}}</ref><ref name=sd2014/> In October 2015, the World Bank updated the international poverty line to US$1.90 a day. | |||
The ] Committee set up to look into the poverty line estimation in India submitted its report in June 2014.<ref>{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=108291 |title=Rangarajan Report on Poverty |publisher=Press Information Bureau, Government of India |access-date=2017-10-21}}</ref> It amended the calculation of the poverty line based on per capita consumption expenditure per month or day given by the Tendulkar Committee.<ref>{{cite news|url=http://www.thehindu.com/business/Economy/Rangarajan-defends-poverty-estimates/article11257188.ece |title=Rangarajan defends poverty estimates |work=The Hindu |date=7 July 2014 |access-date=2017-10-21}}</ref> The new poverty threshold for rural areas was fixed at Rs 972 per month or Rs 32 per day. For urban areas, it was fixed at Rs 1407 per month or Rs 47 per day. Under this methodology, the population below the poverty line in 2009–2010 was 454 million (38.2% of the population) and that in 2011–2012 was 363 million (29.5% of the population).<ref>{{cite web|url=http://indiatoday.intoday.in/story/rangarajan-panel-report-poverty-line-suresh-tendulkar-committee/1/370207.html |title=Three out of ten in India are poor, says Rangarajan panel report |date=7 July 2014 |publisher=India Today |access-date=2017-10-21}}</ref> | |||
From November 2017, the ] started reporting poverty rates for all countries using two new international poverty lines: a "lower middle-income" line set at $3.20 per day and an "upper middle-income" line set at $5.50 per day. These are in addition to the earlier poverty line of $1.90 per day. The new lines are supposed to serve two purposes. One, they account for the fact that achieving the same set of capabilities may need a different set of goods and services in different countries and, specifically, a costlier set in richer countries. Second, they allow for cross-country comparisons and benchmarking both within and across developing regions. India falls in the lower middle-income category. Using the $3.20 per day poverty line, the percentage of the population living in poverty in India (2011) was 60%. This means that 763 million people in India were living below this poverty line in 2011.<ref>{{cite web |title=Resource Watch |url=https://resourcewatch.org/data/explore/soc101?section=Discover&selectedCollection=&zoom=2.643147855194031&lat=16.649601015000737&lng=66.7987063530954&pitch=0&bearing=0&basemap=dark&labels=light&layers=%255B%257B%2522dataset%2522%253A%25228711d841-8421-4fcb-8ee2-881e573856e0%2522%252C%2522opacity%2522%253A1%252C%2522layer%2522%253A%2522b2a180f2-869f-4478-8bb0-e0548e62973f%2522%257D%255D&aoi=&page=1&sort=most-viewed&sortDirection=-1 |website=resourcewatch.org |access-date=17 March 2022 |language=en }}</ref> | |||
====2020s==== | |||
The ] conducted the Household Consumption Expenditure Survey (HCES) during August 2022 to July 2023 and the factsheet was published on 24 February 2024.<ref>{{cite news|title=After a 11-year gap, Centre discloses key consumption expenditure survey data|url=https://www.thehindu.com/business/Economy/after-11-years-household-consumption-expenditure-survey-findings-released/article67882939.ece|work=The Hindu|date=24 February 2024 |accessdate=10 May 2024 |last1=Dhoot |first1=Vikas }}</ref> This survey on household consumption expenditure was aimed at generating estimates of household Monthly Per Capita Consumption Expenditure (MPCE) and its distribution separately for rural and urban areas.<ref>{{cite web|title=Per-capita Monthly Household Consumption Expenditure more than doubled during 2011-12 to 2022-23|url=https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2008737|publisher=Press Information Bureau, India|accessdate=10 May 2024}}</ref> The below table shows the average MPCE (in rupees) across fractile classes (all-India) in 2022-23:<ref>{{cite web|title=Household Consumption Expenditure Survey: 2022-23|url=https://www.mospi.gov.in/sites/default/files/publication_reports/Factsheet_HCES_2022-23.pdf|publisher=Ministry of Statistics and Programme Implementation, India|accessdate=10 May 2024}}</ref> | |||
{| class="wikitable collapsible" style="margin-left:auto;margin-right:auto;text-align: center" | |||
|- | |||
! rowspan="2" | Fractile class of MPCE | |||
! rowspan="1" colspan="2" | Average MPCE in rupees <br/>(with imputation*) | |||
! rowspan="1" colspan="2" | Average MPCE in rupees <br/>(without imputation) | |||
|- | |||
! Rural | |||
! Urban | |||
! Rural | |||
! Urban | |||
|- | |||
| 0-5% || 1,441 || 2,087 || 1,373 || 2,001 | |||
|- | |||
| 5-10% || 1,864 || 2,695 || 1,782 || 2,607 | |||
|- | |||
| 10-20% || 2,196 || 3,241 || 2,112 || 3,157 | |||
|- | |||
| 20-30% || 2,540 || 3,839 || 2,454 || 3,762 | |||
|- | |||
| 30-40% || 2,856 || 4,422 || 2,768 || 4,348 | |||
|- | |||
| 40-50% || 3,183 || 5,032 || 3,094 || 4,963 | |||
|- | |||
| 50-60% || 3,545 || 5,726 || 3,455 || 5,662 | |||
|- | |||
| 60-70% || 3,978 || 6,579 || 3,887 || 6,524 | |||
|- | |||
| 70-80% || 4,551 || 7,721 || 4,458 || 7,673 | |||
|- | |||
| 80-90% || 5,447 || 9,625 || 5,356 || 9,582 | |||
|- | |||
| 90-95% || 6,725 || 12,430 || 6,638 || 12,399 | |||
|- | |||
| 95-100% || 10,581 ||20,846 || 10,501 || 20,824 | |||
|- | |||
| '''All classes''' || '''3,860''' || '''6,521''' || '''3,773''' || '''6,459''' | |||
|- | |||
|} | |||
<small>*Imputation includes quantity of consumption for a number of items, received and consumed free of cost through various social welfare programmes.</small> | |||
Based on the above consumption expenditure survey, a ] report stated that rural poverty was 7.2% and urban poverty was 4.6% in 2022-23 with a new consumption expenditure-based ''poverty line'' for India of Rs 1,622 per person per month for rural areas and Rs 1,929 per person per month for urban areas in India based on the recommendations of the Suresh Tendulkar committee.<ref>{{cite web|title=Poverty rate in India between 4.5-5% in 2022-23; rural poverty at 7.2%: SBI|url=https://www.business-standard.com/economy/news/poverty-rate-in-india-between-4-5-5-in-2022-23-rural-poverty-at-7-2-sbi-124022800287_1.html|publisher=Business Standard|accessdate=10 May 2024}}</ref><ref>{{cite web|title=SBI Research|url=https://sbi.co.in/documents/13958/36530824/270224-HCES_Feb24.pdf|publisher=State Bank of India|accessdate=10 May 2024}}</ref> | |||
====Semi-economic measures of poverty==== | |||
Other measures such as the semi-economic ] (MPI), which places 33% weight on education and number of schooling years in its definition of poverty, and places 6.25% weight on income and assets owned, suggests there were 650 million people (53.7% of population) living in MPI-poverty in India.<ref name=ophimpi>{{cite web|url=http://www.ophi.org.uk/wp-content/uploads/India.pdf?cda6c1|work=Oxford Poverty and Human Development Initiative|title=Country Briefing: India, Multidimensional Poverty Index (MPI) At a Glance|access-date=16 August 2017}}</ref> 421 million of MPI-defined poor are concentrated in eight ]n and ]n states of ], ], ], ], ], ], ] and ]. The table below presents this semi-economic poverty among the states of India based on the Multi-dimensional Poverty Index, using a small sample survey data for Indian states in 2005.<ref>{{cite web|url=http://www.ophi.org.uk/wp-content/uploads/Country-Brief-India.pdf|title=Country Briefing: India|year=2010|publisher=Oxford Poverty and Human Development Initiative|access-date=14 June 2011}}</ref> | |||
{| class="wikitable sortable collapsible collapsed" style="margin-left:auto;margin-right:auto;text-align: right" | |||
|- | |||
! MPI rank | |||
! States | |||
! Population (in millions) 2007 | |||
! MPI | |||
! Proportion of MPI-poor | |||
! Average intensity | |||
! Contribution to overall MPI-poverty | |||
! Number of MPI poor (in millions) | |||
|- | |||
| — || style="text-align:left;"| India || 1,164.7 || 0.296 || 55.4% || 53.5% || – || 645.0 | |||
|- | |||
| 1 || style="text-align:left;"| ] || 35.0 || 0.065 || 15.9% || 40.9% || 0.6% || 5.6 | |||
|- | |||
| 2 || style="text-align:left;"| ] || 1.6 || 0.094 || 21.7% || 43.4% || 0.0% || 0.4 | |||
|- | |||
| 3 || style="text-align:left;"| ] || 27.1 || 0.120 || 26.2% || 46.0% || 1.0% || 7.1 | |||
|- | |||
| 4 || style="text-align:left;"| ] || 6.7 || 0.131 || 31.0% || 42.3% || 0.3% || 2.1 | |||
|- | |||
| 5 || style="text-align:left;"| ] || 68.0 || 0.141 || 32.4% || 43.6% || 2.6% || 22.0 | |||
|- | |||
| 6 || style="text-align:left;"| ] || 9.6 || 0.189 || 40.3% || 46.9% || 0.5% || 3.9 | |||
|- | |||
| 7 || style="text-align:left;"| ] || 108.7 || 0.193 || 40.1% || 48.1% || 6.0% || 43.6 | |||
|- | |||
| 8 || style="text-align:left;"| ] || 24.1 || 0.199 || 41.6% || 47.9% || 1.3% || 10.0 | |||
|- | |||
| 9 || style="text-align:left;"| ] || 98.3 || 0.205 || 21.5% || 49.2% || 0.4% || 0.8 | |||
|- | |||
| 10 || style="text-align:left;"| ] || 12.2 || 0.209 || 43.8% || 47.7% || 0.7% || 5.4 | |||
|- | |||
| 11 || style="text-align:left;"| ] || 83.9 || 0.211 || 44.7% || 47.1% || 5.1% || 37.5 | |||
|- | |||
| 12 || style="text-align:left;"| ] || 58.6 || 0.223 || 46.1% || 48.3% || 4.2% || 27.0 | |||
|- | |||
| 13 || style="text-align:left;"| ] || 44.2 || 0.303 || 57.6% || 52.5% || 4.0% || 25.5 | |||
|- | |||
| 14 || style="text-align:left;"| ] || 89.5 || 0.317 || 58.3% || 54.3% || 8.5% || 52.2 | |||
|- | |||
| 15 || style="text-align:left;"| ] || 40.7 || 0.345 || 64.0% || 54.0% || 4.3% || 26.0 | |||
|- | |||
| 16 || style="text-align:left;"| ] || 65.4 || 0.351 || 64.2% || 54.7% || 7.0% || 41.9 | |||
|- | |||
| 17 || style="text-align:left;"| ] || 192.6 || 0.386 || 69.9% || 55.2% || 21.3% || 134.7 | |||
|- | |||
| 18 || style="text-align:left;"| ] || 23.9 || 0.387 || 71.9% || 53.9% || 2.9% || 17.2 | |||
|- | |||
| 19 || style="text-align:left;"| Madhya Pradesh || 70.0 || 0.389 || 69.5% || 56.0% || 8.5% || 48.6 | |||
|- | |||
| 20 || style="text-align:left;"| ] || 30.5 || 0.463 || 77.0% || 60.2% || 4.2% || 23.5 | |||
|- | |||
| 21 || style="text-align:left;"| ] || 95.0 || 0.499 || 81.4% || 61.3% || 13.5% || 77.3 | |||
|} | |||
==Other estimates== | |||
According to a 2011 poverty Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, with India's poverty rate projected to drop from 51% in 1990 to about 22% in 2015.<ref name=indiatimes1>{{cite news|url=http://timesofindia.indiatimes.com/articleshow/9152344.cms|title=India's poverty will fall from 51% to 22% by 2015: UN report|work=]|agency=PTI|date=8 July 2011|access-date=16 August 2017}}</ref> The report also indicates that in Southern Asia, only India is on track to cut poverty by half by the 2015 target date.<ref name=indiatimes1/> | |||
In 2015, according to United Nations Millennium Development Goals (MGD) programme, India has already achieved the target of reducing poverty by half, with 24.7% of its 1.2 billion people in 2011 living below the poverty line or having income of less than $1.25 a day, the U.N. report said. The same figure was 49.4% in 1994. India had set a target of 23.9% to be achieved by 2015.<ref>{{cite news|url=https://www.wsj.com/articles/BL-IRTB-28254|title=India Hits Its U.N. Poverty-Cutting Target, but Misses Others|author=Vibhuti Agarwal|date=5 February 2015|via=Wall Street Journal|access-date=16 August 2017}}</ref> | |||
According to Global Wealth Report 2016<ref>{{cite news|url=https://www.credit-suisse.com/us/en/about-us/research/research-institute/news-and-videos/articles/news-and-expertise/2016/11/en/the-global-wealth-report-2016.html|title=Global Wealth Report 2016|work=]|access-date=16 August 2017|archive-url=https://web.archive.org/web/20161123054643/https://www.credit-suisse.com/us/en/about-us/research/research-institute/news-and-videos/articles/news-and-expertise/2016/11/en/the-global-wealth-report-2016.html|archive-date=23 November 2016|url-status=dead}}</ref> compiled by Credit Suisse Research Institute, India is the second most unequal country in the world with the top one per cent of the population owning 58% of the total wealth.<ref>{{cite news|url=http://www.hindustantimes.com/india-news/india-second-unequal-country-in-the-world-wealth-report/story-MGIa7MbWAdzhKFvwhtiIeI.html|title=India second most unequal country in the world: Wealth Report|date=24 November 2016|work=]|access-date=16 August 2017}}</ref> | |||
According to the ], around 21.25% of India's population live on less than US$1.90 a day. The WFP also says that India is home to a quarter of the world's undernourished people.<ref>{{Cite web |title=India {{!}} World Food Programme |url=https://www.wfp.org/countries/india |access-date=2023-04-25 |website=www.wfp.org |language=en}}</ref> | |||
;Global Hunger Index | |||
] (GHI) is an index that places a third of weight on proportion of the population that is estimated to be undernourished, a third on the estimated prevalence of low body weight to height ratio in children younger than five, and remaining third weight on the proportion of children dying before the age of five for any reason. According to 2011 GHI report, India has improved its performance by 22% in 20 years, from 30.4 to 23.7 over 1990 to 2011 period.<ref>{{cite web |title=2011 Global Hunger Index Report|url=http://www.ifpri.org/sites/default/files/publications/ghi11.pdf |publisher= ] (IFPRI)|pages=12, 49}}</ref> However, its performance from 2001 to 2011 has shown little progress, with just 3% improvement. A sharp reduction in the percentage of underweight children has helped India improve its hunger record on the Global Hunger Index (GHI) 2014. India now ranks 55 among 76 emerging economies. Between 2005 and 2014, the prevalence of underweight children under the age of five fell from 43.5% to 30.7%.<ref>{{cite news|url=http://www.livemint.com/Politics/rUGpGL9KeroKGBf0xQw4kK/India-betters-its-rank-in-Global-Hunger-Index.html|title=India betters its rank in Global Hunger Index|author=Sayantan Bera|work=]|date=13 October 2014|access-date=16 August 2017}}</ref> | |||
'''Poverty: 2011–2012 Percentage of people by Caste'''<ref name=PPbyCaste>{{cite web|url=http://indianeconomy.columbia.edu:80/sites/default/files/working_papers/working_paper_2013-02-final.pdf|archive-url=https://web.archive.org/web/20140309044717/http://indianeconomy.columbia.edu:80/sites/default/files/working_papers/working_paper_2013-02-final.pdf|url-status=dead|archive-date=2014-03-09|title=Working Paper No. 2013-02.Poverty by Social, Religious & EconomicGroups in India and Its Largest States1993-94 to 2011–12 (Pages 6–7)}}</ref> | |||
Findings below are based on a survey conducted during 2011–12. | |||
Total population of India then: 1,276,267,631 | |||
''Caste-wise population distribution:''<ref name=PPbyCaste/> | |||
{|class="wikitable" | |||
|- | |||
!Caste!!% of total population!!No. of People | |||
|- | |||
|FC||28.0%||357M | |||
|- | |||
|OBC||44.1%||563M | |||
|- | |||
|SC||19.0%||242M | |||
|- | |||
|ST||8.9%||114M | |||
|- | |||
|Total||100%||1276M | |||
|} | |||
''Poverty in India based on caste:''<ref name=PPbyCaste/> | |||
{|class="wikitable" | |||
|- | |||
!Caste!!% of Poverty (intra-caste)!!No. of People!!% of Poverty in total population | |||
|- | |||
|FC||12.5%||44.6M||3.5% | |||
|- | |||
|OBC||20.7%||116.5M||9.1% | |||
|- | |||
|SC||29.4%||71.2M||5.8% | |||
|- | |||
|ST||43.0%||49.0M||3.8% | |||
|- | |||
|Total||-||281M||22% | |||
|} | |||
From the above 2 tables, we could derive the following to see if the distribution of poverty follows as that of the total population: | |||
{|class="wikitable" | |||
|- | |||
!Caste!!% of total population!!Poverty % over poverty population | |||
|- | |||
|FC||28.0%||15.9% | |||
|- | |||
|OBC||44.1%||41.4% | |||
|- | |||
|SC||19.0%||25.3% | |||
|- | |||
|ST||8.9%||17.4% | |||
|} | |||
---- | |||
''Poverty in India based on Social and Religious Classes:'' | |||
The Sachar Committee looked at the Poverty by Social and Religious Classes<ref> Retrieved 16 August 2017.</ref> | |||
{|class="wikitable" | |||
|- | |||
!Social and Religious Class!!Percentage of Living in Poverty | |||
|- | |||
|Urban Hindus||20.4% | |||
|- | |||
|Urban Hindu General||8.3% | |||
|- | |||
|Urban Hindu OBC||25.1% | |||
|- | |||
|Urban Hindu SC/ST||36.4% | |||
|- | |||
|Urban Muslims||38.4% | |||
|- | |||
|Urban Other Minorities||12.2% | |||
|- | |||
|Rural Hindus||22.6% | |||
|- | |||
|Rural Hindu General||9.0% | |||
|- | |||
|Rural Hindu OBC||19.5% | |||
|- | |||
|Rural Hindu SC/ST||34.8% | |||
|- | |||
|Rural Muslims||26.9% | |||
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|Rural Other Minorities||14.3% | |||
|} | |||
==Reduction in poverty== | |||
{{main|Poverty alleviation programmes in India}} | |||
Since the 1950s, the ] and non-governmental organisations have initiated several programs to alleviate poverty, including ] food and other necessities, increased access to loans, improving agricultural techniques and price supports, promoting education, and ]. These measures have helped eliminate ]s, cut ] levels by more than half, and reduced ] and ]. | |||
Although the ] has grown steadily over the last two decades, its growth has been uneven when comparing social groups, economic groups, geographic regions, and rural and urban areas.<ref name="World bank 2006">{{cite web |url=http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/DPR_FullReport.pdf|title=Inclusive Growth and Service delivery: Building on India's Success|publisher=]|year=2006|access-date=16 August 2017}}</ref><ref>{{cite web |url= http://54pesos.org/2010/09/28/how-lack-or-poor-infrastructure-shapes-inequality-and-poverty-in-supernations-a-lesson-from-india/ |author= Luis Flores Ballesteros |title= How lack or poor infrastructure shapes inequality and poverty in supernations. A lesson from India" 54 Pesos Sep. 2010:54 Pesos 28 Sep 2010 |website= 54pesos.org |date= 28 September 2010 |access-date= 16 October 2011 |archive-url= https://web.archive.org/web/20111003182025/http://54pesos.org/2010/09/28/how-lack-or-poor-infrastructure-shapes-inequality-and-poverty-in-supernations-a-lesson-from-india/ |archive-date= 3 October 2011 |url-status= dead |df= dmy-all }}</ref> For the year 2015–16, the GSDP growth rates of ], ] and ] was higher than ], ] or ].<ref>{{cite news|title=AP stands 1st in India in GSDP growth rate|url=https://timesofindia.indiatimes.com/city/hyderabad/AP-stands-1st-in-India-in-GSDP-growth-rate/articleshow/52709609.cms|work=]|agency=TNN|date=12 June 2016|access-date=16 August 2017}}</ref> Though GDP growth rate matters a lot economically, the debate is moving towards another consensus in India, where unhealthy infatuation with GDP growth matters less and holistic development or all-inclusive growth matters more.<ref>{{Cite journal|last1=Borooah|first1=Vani K.|last2=Diwakar|first2=Dilip|last3=Mishra|first3=Vinod Kumar|last4=Naik|first4=Ajaya Kumar|last5=Sabharwal|first5=Nidhi S.|title=Caste, inequality, and poverty in India: a reassessment|journal=Development Studies Research |volume=1|issue=1|pages=279–294|doi=10.1080/21665095.2014.967877|year=2014|doi-access=free}}</ref> While India may well be on the path to eradicating extreme poverty, it still lags well behind in other important development indicators, even in comparison to some of its neighbouring countries, especially in regard to health and education.<ref>{{cite news |title=Good progress with further room for improvement|url=https://www.dandc.eu/en/article/how-well-india-doing-terms-fighting-poverty-depends-what-yardstick-applied|author=Roli Mahajan|work=D+C, development and cooperation |date=20 October 2018 |access-date=5 February 2019}}</ref> | |||
Despite significant economic progress, one quarter of the nation's population earns less than the government-specified ] of {{INR}}32 per day (approximately {{USD}} 0.6).<ref name="india_official_poverty">{{cite news |url=https://www.theguardian.com/global-development/poverty-matters/2011/oct/04/india-measuring-poverty-line|title=India's official poverty line|work=The Guardian|location=London|author=Jayati Ghosh|date=4 October 2011|access-date=16 August 2017}}</ref> | |||
According to the 2001 census, 35.5% of Indian households used banking services, 35.1% owned a radio or transistor, 31.6% a television, 9.1% a phone, 43.7% a bicycle, 11.7% a scooter, motorcycle or a ], and 2.5% a car, jeep or van; 34.5% of the households had none of these assets.<ref>{{cite web |url=http://urbandia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf|title=Households Availing Banking Services with Households in India|year=2001|publisher=Town and Country Planning Organisation, Ministry of Urban Affairs|access-date=31 July 2009}} {{Dead link|date=August 2017}}</ref> As part of creating the capacity to give access to individuals who are still outside the scope of financial services, ]'s president ] called for additional new banks and ].<ref>{{Cite news |title=Creating international champions: Bajaj Finserv's Sanjiv Bajaj lays out his vision for India's future |work=The Economic Times |url=https://economictimes.indiatimes.com/news/company/corporate-trends/creating-international-champions-bajaj-finservs-sanjiv-bajaj-lays-out-his-vision-for-indias-future/articleshow/93583933.cms?from=mdr |access-date=2022-11-29}}</ref> | |||
According to Department of Telecommunications of India, the phone density reached 73.34% by December 2012 and as an annual growth decreased by −4.58%.<ref>{{cite web|url=http://www.dot.gov.in/network2013|title=Department of Telecom, memo Feb 2013|year=2013|publisher=Department of Telecommunication of India}}{{Dead link|date=August 2017}}</ref> This tallies with the fact that a family of four with an annual income of {{INRConvert|137000}} could afford some of these luxury items. | |||
The World Bank's Global Monitoring Report for 2014–15 on the Millennium Development Goals says India has been the biggest contributor to poverty reduction between 2008 and 2011, with around 140 million or so lifted out of absolute poverty.<ref>{{cite web|url=http://www.livemint.com/Opinion/xrATLLP8ojKEVEQgJV0UxJ/The-World-Bank-on-Indias-poverty.html|title=The World Bank on India's poverty|author=Manas Chakravarty|date=13 October 2014|access-date=16 August 2017}}</ref> | |||
On July 17, 2023, a ] report highlighted that 13.5 crore People were lifted out of multidimensional poverty between 2015–16 and 2019–21. The report was developed using the most recent data from ] conducted between 2019 and 2021 and represents the second iteration of the National Multidimensional Poverty Index.<ref>{{Cite news |date=2023-07-17 |title=13.5 cr people moved out of multidimensional poverty in India in 5 years: Niti report |work=The Economic Times |url=https://economictimes.indiatimes.com/news/india/13-5-cr-people-moved-out-of-multidimensional-poverty-in-india-in-5-years-niti-report/articleshow/101828788.cms |access-date=2023-07-31 |issn=0013-0389}}</ref> Since the early 1950s, the Indian government has initiated various schemes to help the poor attain self-sufficiency in food production. A few examples of these initiatives include ration cards and price controls over the supply of basic commodities, particularly food at controlled prices, available throughout the country. These efforts prevented famines, but did little to eliminate or reduce poverty in rural or urban areas between 1950 and 1980.<ref>{{cite web|url=http://info.worldbank.org/etools/docs/library/166856/UCMP/UCMP/Documents/india%27s-urban-poverty.pdf|title=India's Urban Poverty Agenda: Understanding the Poor in Cities and Formulating Appropriate Anti-Poverty Actions|location=Goa, India|date=9–21 January 2000|access-date=22 May 2014|archive-url=https://web.archive.org/web/20140705204155/http://info.worldbank.org/etools/docs/library/166856/UCMP/UCMP/Documents/india's-urban-poverty.pdf|archive-date=5 July 2014|url-status=dead|df=dmy-all}}</ref> | |||
India's rapid economic growth rate since 1991 is one of the main reasons for a record decline in poverty.<ref name=bnp2013>Bhagwati & Panagariya (2013), Why Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries, Public Affairs, {{ISBN|978-1610393737}}</ref><ref name=ssaa>Swaminathan S. Anklesaria Aiyar, Cato Institute (20 July 2011). Retrieved 16 August 2017.</ref><ref>Ravallion & Datt (2002), Why has economic growth been more pro-poor in some states of India than others?, Journal of development economics, 68(2), 381–400</ref> Another reason proposed is India's launch of social welfare programs such as the ] (MGNREGA) and the ] in government schools.<ref>{{cite journal |last1=Suman |first1=Santosh Kumar |title=Relevance of MGNREGA in India |journal=AEBM |volume=3 |issue=7 |pages=781–783 |url=https://www.krishisanskriti.org/vol_image/01Dec20200712192016%20Vol%203%20Issue%207%20July-September%20AEBM%20Paper%203.pdf |access-date=17 March 2022 |publisher=Krishi Sanskriti Publications |language=English }}</ref> In a 2012 study, Klonner and Oldiges, concluded that MGNREGA helps reduce rural poverty gap (intensity of rural poverty) and seasonal poverty, but not overall poverty.<ref>Klonner and Oldiges, ], (September 2012)</ref><ref>Klonner and Oldiges, University of Heidelberg, Germany (May 2014)</ref> However, there is a disturbing side, as deprivation has tended to increase, and that too among the most deprived sections. According to the latest statistics published by the Census of India, among scheduled tribes, 44.7% of people were farmers working on their own land in 2001; however, this number came down to 34.5% in 2011. Among scheduled castes, this number declined from 20% to 14.8% during the same period. This data is corroborated by other data from the census, which also says that the number of people who were working on others' land (landless laborers), increased from 36.9% in 2001 to 44.4% among scheduled castes SC and from 45.6% to 45.9% among scheduled tribes.<ref>{{cite news|url=http://www.deccanherald.com/content/368397/depriving-poor.html|author=Ashwani Mahajan|title=Depriving the poor|work=]|date=12 November 2013|access-date=16 August 2017}}</ref> | |||
India has achieved annual growth exceeding 7 percent over the last 15 years and continues to pull millions of people out of poverty, according to the World Bank. The country has halved its poverty rate over the past three decades and has seen strong improvements in most human development outcomes, a report by the international financial institution has found. Growth is expected to continue and the elimination of extreme poverty in the next decade is within reach, said the bank, which warned that the country's development trajectory faces considerable challenges.<ref>{{cite web|url=https://worldpoverty.io|title=World Poverty Clock|access-date = 17 March 2022}}</ref> | |||
==UN== | |||
According to a United Nations report on 12 July 2023, India lifted approximately 415 million individuals out of poverty between 2005/2006 and 2019/2021. The United Nations reported that 25 nations, including India, achieved a remarkable milestone by reducing their global MPI (Multidimensional Poverty Index) values by half within a span of 15 years. Additionally, the report highlighted that India experienced a reduction in deprivation across all indicators, with notable progress seen among the most impoverished states and marginalised populations, including children and disadvantaged caste groups.<ref>{{Cite web |date=2023-07-11 |title=India registers remarkable reduction in poverty; 415 million exit in 15 years |url=https://www.livemint.com/news/india/india-registers-remarkable-reduction-in-poverty-415-million-people-out-of-poverty-level-in-just-15-years-un-11689055801549.html |access-date=2023-07-31 |website=mint |language=en}}</ref> | |||
==See also== | |||
], ].]] | |||
{{div col|colwidth=22em}} | |||
;Economic and socio-economic | |||
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*] | |||
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;Housing | |||
==History of attempts to alleviate poverty== | |||
*] | |||
Since the early 1950s, government has initiated, sustained, and refined various ] schemes to help the poor attain self sufficiency in food production. Probably the most important initiative has been the supply of basic commodities, particularly food at controlled prices, available throughout the country as poor spend about 80 percent of their income on food. | |||
*] | |||
*] | |||
Programmes like ''Food for work'' and ''National Rural Employment Programme'' have attempted to use the unemployed to generate productive assets and build rural infrastructure.<ref name="survey"/> Other anti poverty programs include ''Rural Landless Employment Guarantee Programme''. | |||
*] | |||
*] | |||
The Rural Landless Employment Guarantee Programme was instituted in FY 1983 to address the plight of the hard-core rural poor by expanding employment opportunities and building the rural infrastructure as a means of encouraging rapid economic growth. There were many problems with the implementation of these and otherschemes, but observers credit them with helping reduce poverty. To improve the effectiveness of the National Rural Employment Programme, in 1989 it was combined with the Rural Landless Employment Guarantee Programme and renamed Jawahar Rozgar Yojana, or Jawahar Employment Plan (see Development Programs, ch. 7). | |||
In August 2005, the ] passed the ''Rural Employment Guarantee Bill'', the largest programme of this type in terms of cost and coverage, which promises 100 days of minimum wage employment to every rural household, in 200 of India's 600 ]. {{inote|ani-REGB|REGB}} The question of whether economic reforms have reduced poverty or not has fueled debates without generating any clearcut answers, and has also put political pressure on further economic reforms, especially those involving downsizing of labour and reduction of agricultural subsidies.<ref name="Datt-9"/><ref name="jgsy">{{cite web | title=Jawahar gram samriddhi yojana | url=http://rural.nic.in/jgsyg.htm | accessdate=July 9 | accessyear=2005 }}</ref> | |||
==Outlook for poverty alleviation== | |||
Eradication of poverty in India can only be a long-term goal. Poverty alleviation is expected to make better progress in the next 50 years than in the past, as a trickle-down effect of the growing middle class. Increasing stress on education, reservation of seats in government jobs and the increasing empowerment of women and the economically weaker sections of society, are also expected to contribute to the alleviation of poverty. It is incorrect to say that all poverty reduction programmes have failed. The growth of the middle class (which was virtually non-existent when India became a free nation in August 1947) indicates that economic prosperity has indeed been very impressive in India, but the distribution of wealth is not at all even. | |||
;Utilities | |||
India currently adds 40 million people to its middle class every year. Analysts such as the founder of "Forecasting International", Marvin J. Cetron writes that an estimated 300 million Indians now belong to the middle class; one-third of them have emerged from poverty in the last ten years. At the current rate of growth, a majority of Indians will be middle-class by ]. Literacy rates have risen from 52 percent to 65 percent during the initial decade of liberalization (1991-2001).{{Fact|date=July 2007}} | |||
*] | |||
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;Corruption | |||
==Controversy over extent of poverty reduction== | |||
*] | |||
While total overall poverty in India has declined, the extent of poverty reduction is often debated. While there is a consensus that there has not been increase in poverty between 1993-94 and 2004-05, the picture is not so clear if one considers other non-pecuniary dimensions (such as health, education, crime and access to infrastructure). With the rapid economic growth that India is experiencing, it is likely that a significant fraction of the rural population will continue to migrate toward cities, making the issue of urban poverty more significant in the long run <ref>,Centre de Sciences Humaines - New Delhi</ref>. | |||
*] | |||
Economist ] has defended the validity of many of the statistics that demonstrated the reduction in overall poverty in India, as well as the declaration made by India's Finance Minister ] that poverty in India has reduced significantly. He insisted that the 1999-2000 survey was well designed and supervised and felt that just because they did not appear to fit preconceived notions about poverty in India, they should not be dismissed outright<ref> J. Ramesh, India Today</ref>. ], vice president of the ], has published defenses of the poverty reduction statistics. He argues that increasing globalization and investment opportunities have contributed significantly to the reduction of poverty in the country. India, together with China, have shown the clearest trends of globalization with the accelerated rise in per-capita income.<ref>ICRIER</ref>. | |||
;Other | |||
A 2007 report by the state-run National Commission for Enterprises in the Unorganised Sector (NCEUS) found that 77% of Indians, or 836 million people, lived on less than 20 rupees per day (] 0.50), with most working in "informal labour sector with no job or social security, living in abject poverty."<ref>, ], ] ]. Accessed: ], ]</ref><ref name = NCEUS>"Report on Conditions of Work and Promotion of Livelihoods in | |||
*] | |||
the Unorganised Sector" ], National Commission for Enterprises in the Unorganised Sector, ], August, 2007. Accessed: ], ].</ref> | |||
*] | |||
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{{div col end}} | |||
==References== | |||
<div class="references-small"> | |||
<references/> | |||
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==References== | |||
{{Reflist|30em}} | |||
==Further reading== | |||
* {{cite book |last1=Breman |first1=Jan |display-authors=etal |author1-link=Jan Breman |title=The Social Question in the Twenty-First Century: A Global View |date=2019 |publisher=University of California Press |location=Oakland, California |isbn=978-0520302402 |url=https://www.ucpress.edu/book/9780520302402/the-social-question-in-the-twenty-first-century |access-date= |chapter=Chapter 6: A Mirage of Welfare: How the Social Question in India Got Aborted|doi=10.1525/luminos.74.g|s2cid=230116593 }} | |||
* {{cite web |title=Poverty in India |url=http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSAREGTOPPOVRED/0,,contentMDK:20574067~menuPK:493447~pagePK:34004173~piPK:34003707~theSitePK:493441,00.html |publisher=World Bank |access-date=}} | |||
* {{cite web |title=Can India eradicate poverty? Will India's economic boom help the poor? |url=http://newsforums.bbc.co.uk/nol/thread.jspa?messageID=2279464&start=1605&tstart=0&&edition=2&ttl=20070217165339 |access-date= |archive-date=5 March 2016 |archive-url=https://web.archive.org/web/20160305021328/http://newsforums.bbc.co.uk/nol/thread.jspa?messageID=2279464&start=1605&tstart=0&&edition=2&ttl=20070217165339 |url-status=dead }} | |||
* {{cite journal |last1=Deaton |first1=A. |last2=Kozel |first2=V. |title=Data and Dogma: The Great Indian Poverty Debate |journal=The World Bank Research Observer |date=11 August 2005 |volume=20 |issue=2 |pages=177–199 |doi=10.1093/wbro/lki009 |url=http://www.princeton.edu/~deaton/downloads/deaton_kozel_great_indian_poverty_debate_wbro_2005.pdf |access-date= |issn=0257-3032}} | |||
* {{cite web |title=World Hunger – India |url=http://www.wfp.org/country_brief/indexcountry.asp?country=356 |website= |access-date= |date=11 February 2009|archive-url = https://web.archive.org/web/20090211115315/http://www.wfp.org/country_brief/indexcountry.asp?country=356|archive-date = 11 February 2009}} | |||
*{{cite web |last1=George |first1=Abraham |author1-link=Abraham George |title=Why the Fight Against Poverty is Failing: A Contrarian View |url=http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4114&specialid=1&CFID=1824805&CFTOKEN=37907590 |website=Wharton Business School Publications |access-date=}} | |||
* {{cite web |last1=Rohr |first1=Mathieu von |title=Poverty and riches in booming India |url=http://www.spiegel.de/international/world/0,1518,499166,00.html |website=Der Spiegel |access-date= |language=en |date=9 August 2007}} | |||
==External links== | |||
== Further Reading == | |||
*{{Commons category-inline}} | |||
* | |||
* {{cite web |title=Poverty in India 2 |url=http://gamma.nic.fi/~otammile/povindia.htm |access-date=}} | |||
* "The Great Indian Poverty Debate" https://www.vedamsbooks.com/no41849.htm | |||
* {{cite web |last1=Tendulkar |first1=Suresh |title=Expert Group on Methodology for Estimation of Poverty |url=http://planningcommission.nic.in/eg_poverty.htm |access-date=}} | |||
* "Can India eradicate poverty? Will India's economic boom help the poor?" http://newsforums.bbc.co.uk/nol/thread.jspa?messageID=2279464&start=1605&tstart=0&&edition=2&ttl=20070217165339 | |||
* {{cite web |title=From poverty to empowerment: India's imperative for jobs, growth, and effective basic services |url=http://www.mckinsey.com/insights/asia-pacific/indias_path_from_poverty_to_empowerment |website=McKinsey Global Institute |access-date= |date=2013}} | |||
* "World Hunger - India" http://www.wfp.org/country_brief/indexcountry.asp?country=356 | |||
* {{cite book |title=Perspectives on Poverty in India |date=2013 |publisher=The World Bank |isbn=978-0-8213-8689-7 |url=https://openknowledge.worldbank.org/bitstream/handle/10986/2299/574280PUB0Pers1351B0Extop0ID0186890.pdf?sequence=1 |access-date=}} | |||
* ], | |||
*{{cite book |title=INDIA |date=2014 |publisher=International Monetary Fund |url=http://www.imf.org/external/pubs/ft/scr/2014/cr1458.pdf |access-date= |chapter=Chapter 4: DEFINING AND EXPLAINING INCLUSIVE GROWTH AND POVERTY}} | |||
* | |||
{{Economy of India topics}} | |||
==External links== | |||
{{Social issues in India}} | |||
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{{India topics}} | |||
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{{Poverty}} | |||
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{{Asia topic|Poverty in}} | |||
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{{Authority control}} | |||
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{{DEFAULTSORT:Poverty In India}} | |||
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Latest revision as of 18:26, 25 November 2024
Poverty in India remains a major challenge despite overall reductions in the last several decades as its economy grows. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak. According to the World Bank, India experienced a significant decline in the prevalence of extreme poverty from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period. The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively. According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."
The World Bank has been revising its definition and benchmarks to measure poverty since 1990–1991, with a $0.2 per day income on purchasing power parity basis as the definition in use from 2005 to 2013. Some semi-economic and non-economic indices have also been proposed to measure poverty in India. For example, in order to determine whether a person is poor, the Multi-dimensional Poverty Index places a 33% weight on the number of years that person spent in school or engaged in education and a 6.25% weight on the financial condition of that person.
The different definitions and underlying small sample surveys used to determine poverty in India have resulted in widely varying estimates of poverty from the 1950s to 2010s. In 2019, the Indian government stated that 6.7% of its population is below its official poverty limit. Based on 2019's PPPs International Comparison Program, According to the United Nations Millennium Development Goals (MDG) programme, 80 million people out of 1.2 billion Indians, roughly equal to 6.7% of India's population, lived below the poverty line of $1.25 and 84% of Indians lived on less than $6.85 per day in 2019. According to the second edition of the Multidimensional Poverty Index (MPI) released by Niti Aayog, approximately 14.96% of India's population is considered to be in a state of multidimensional poverty. The National Multidimensional Poverty Index (MPI) assesses simultaneous deprivations in health, education, and standard of living, with each dimension carrying equal weight. These deprivations are measured using 12 indicators aligned with the Sustainable Development Goals (SDGs). On July 17, 2023, Niti Aayog reported a significant reduction in the proportion of poor people in the country, declining from 24.8% to 14.9% during the period from 2015–16 to 2019–21. This improvement was attributed to advancements in nutrition, years of schooling, sanitation, and the availability of subsidized cooking fuel. As per the report, approximately 135 million people in India were lifted out of multidimensional poverty between 2015–16 and 2019–21.
From the late 19th century through the early 20th century, under the British Raj, poverty in India intensified, peaking in the 1920s. Famines and diseases killed millions in multiple cycles throughout the 19th and early 20th centuries. After India gained its independence in 1947, mass deaths from famines were prevented. Since 1991, rapid economic growth has led to a sharp reduction in extreme poverty in India. However, those above the poverty line live a fragile economic life. As per the methodology of the Suresh Tendulkar Committee report, the population below the poverty line in India was 354 million (29.6% of the population) in 2009–2010 and was 269 million (21.9% of the population) in 2011–2012. In 2014, the Rangarajan Committee said that the population below the poverty line was 454 million (38.2% of the population) in 2009–2010 and was 363 million (29.5% of the population) in 2011–2012. Deutsche Bank Research estimated that there are nearly 300 million people who are in the middle class. If these previous trends continue, India's share of world GDP will significantly increase from 7.3% in 2016 to 8.5% by 2020. In 2012, around 170 million people, or 12.4% of India's population, lived in poverty (defined as $1.90 (Rs 123.5)), an improvement from 29.8% of India's population in 2009. In their paper, economists Sandhya Krishnan and Neeraj Hatekar conclude that 600 million people, or more than half of India's population, belong to the middle class.
The Asian Development Bank estimates India's population to be at 1.28 billion with an average growth rate of 1.3% from 2010 to 2015. In 2014, 9.9% of the population aged 15 years and above were employed. 6.9% of the population still lives below the national poverty line and 6.3% in extreme poverty (December 2018). The World Poverty Clock shows real-time poverty trends in India, which are based on the latest data, of the World Bank, among others. As per recent estimates, the country is well on its way of ending extreme poverty by meeting its sustainable development goals by 2030. According to Oxfam, India's top 1% of the population now holds 73% of the wealth, while 670 million citizens, comprising the country's poorer half, saw their wealth rise by just 1%.
Definition of poverty
Poverty is the state of not having enough material possessions or income for a person basic need. Poverty may include social, economic, and political elements. Absolute poverty is the complete lack of the means necessary to meet basic personal needs, such as food, clothing, and shelter.
- Economic measures
There are several definitions of poverty, and scholars disagree as to which definition is appropriate for India. Inside India, both income-based poverty definition and consumption-based poverty statistics are in use. Outside India, the World Bank and institutions of the United Nations use a broader definition to compare poverty among nations, including India, based on purchasing power parity (PPP), as well as nominal relative basis. Each state in India has its own poverty threshold to determine how many people are below its poverty line and to reflect regional economic conditions. These differences in definitions yield a complex and conflicting picture about poverty in India, both internally and when compared to other developing countries of the world.
According to the World Bank, India accounted for the world's largest number of poor people in 2012 using revised methodology to measure poverty, reflecting its massive population. However, in terms of percentage, it scored somewhat lower than other countries holding large poor populations. In July 2018, World Poverty Clock, a Vienna-based think tank, reported that a minimal 5.3% or 70.6 million Indians lived in extreme poverty compared to 44% or 87 million Nigerians. In 2019, Nigeria and Congo surpassed India in terms of total population earning below $1.9 a day. Although India is expected to meet the United Nations' Sustainable Development Goals on extreme poverty in due time, a very large share of its population lives on less than $3.2 a day, putting India's economy safely into the category of lower middle income economies.
As with many countries, poverty was historically defined and estimated in India using a sustenance food standard. This methodology has been revised. India's current official poverty rates are based on its Planning Commission's data derived from so-called Tendulkar methodology. It defines poverty not in terms of annual income, but in terms of consumption or spending per individual over a certain period for a basket of essential goods. Furthermore, this methodology sets different poverty lines for rural and urban areas. Since 2007, India has set its official threshold at ₹ 26 a day ($0.43) in rural areas and about ₹ 32 per day ($0.53) in urban areas. While these numbers are lower than the World Bank's $1.25 per day income-based definition, the definition is similar to China's US$0.65 per day official poverty line in 2008.
The World Bank's international poverty line definition is based on purchasing power parity basis, at $1.25 per day. This definition is motivated by the fact that the price of the same goods and services can differ significantly when converted into local currencies around the world. A realistic definition and comparison of poverty must consider these differences in costs of living, or must be on purchasing power parity (PPP) basis. On this basis, currency fluctuations and nominal numbers become less important, the definition is based on the local costs of a basket of essential goods and services that people can purchase. By World Bank's 2014 PPP definition, India's poverty rate is significantly lower than previously believed.
- Mixed, semi-economic and non-economic measures
As with economic measures, there are many mixed or non-economic measures of poverty and experts contest which one is most appropriate for India. For example, Dandekar and Rath in 1971 suggested a measure of poverty rate that was based on number of calories consumed. In 2011, Alkire et al. suggested a poverty rate measure so-called Multi-dimensional Poverty Index (MPI), which only puts a 6.25% weight to assets owned by a person and places 33% weight on education and number of years spent in school. These non-economic measures remain controversial and contested as a measure of poverty rate of any nation, including India.
In 2023, the NITI Aayog published the National Multidimensional Poverty Index: A Progress Review 2023. The percentage of the total population who are multidimensionally poor in each State and Union Territory and the percentage point change in the headcount ratio between 2015-16 and 2019-21 are given below:
State or Union Territory | % of Population who are multidimensionally poor NFHS-5 (2019-21) |
% of Population who are multidimensionally poor NFHS-4 (2015-16) |
Percentage point change in headcount ratio between 2015-16 and 2019-21 |
---|---|---|---|
Andhra Pradesh | 6.06 | 11.77 | -5.71 |
Arunachal Pradesh | 13.76 | 24.23 | -10.48 |
Assam | 19.35 | 32.65 | -13.30 |
Bihar | 33.76 | 51.89 | -18.13 |
Chhattisgarh | 16.37 | 29.90 | -13.53 |
Goa | 0.84 | 3.76 | -2.92 |
Gujarat | 11.66 | 18.47 | -6.81 |
Haryana | 7.07 | 11.88 | -4.81 |
Himachal Pradesh | 4.93 | 7.59 | -2.65 |
Jharkhand | 28.81 | 42.10 | -13.29 |
Karnataka | 7.58 | 12.77 | -5.20 |
Kerala | 0.55 | 0.70 | -0.15 |
Madhya Pradesh | 20.63 | 36.57 | -15.94 |
Maharashtra | 7.81 | 14.80 | -6.99 |
Manipur | 8.10 | 16.96 | -8.86 |
Meghalaya | 27.79 | 32.54 | -4.75 |
Mizoram | 5.30 | 9.78 | -4.48 |
Nagaland | 15.43 | 25.16 | -9.73 |
Odisha | 15.68 | 29.34 | -13.65 |
Punjab | 4.75 | 5.57 | -0.82 |
Rajasthan | 15.31 | 28.86 | -13.56 |
Sikkim | 2.60 | 3.82 | -1.21 |
Tamil Nadu | 2.20 | 4.76 | -2.56 |
Telangana | 5.88 | 13.18 | -7.30 |
Tripura | 13.11 | 16.62 | -3.50 |
Uttar Pradesh | 22.93 | 37.68 | -14.75 |
Uttarakhand | 9.67 | 17.67 | -8.00 |
West Bengal | 11.89 | 21.29 | -9.41 |
Andaman & Nicobar Islands | 2.30 | 4.29 | -1.99 |
Chandigarh | 3.52 | 5.97 | -2.46 |
Dadra & Nagar Haveli and Daman & Diu | 9.21 | 19.58 | -10.38 |
Jammu & Kashmir | 4.80 | 12.56 | -7.76 |
Ladakh | 3.53 | 12.70 | -9.17 |
Delhi | 3.43 | 4.44 | -1.02 |
Lakshadweep | 1.11 | 1.82 | -0.71 |
Puducherry | 0.85 | 1.71 | -0.87 |
India | 14.96 | 24.85 | -9.89 |
Country | Poverty line (per day) |
Year | Reference |
---|---|---|---|
India | 32 rupees ($0.5) | 2017 | |
Argentina | 481 pesos ($11.81) | 2017 | |
China | 6.3 yuan ($1) | 2011 | |
Nigeria | 65 naira ($0.4) | 2011 | |
United States | $14 | 2005 |
- Comparison with alternate international definitions
India determines its household poverty line by summing up the individual per capita poverty lines of the household members. This practice is similar to many developing countries, but different from developed countries such as the United States who adjusts their poverty line on an incremental basis per additional household member. For example, in the United States, the poverty line for a household with just one member was set at $11,670 per year for 2014, while it was set at $23,850 per year for a 4-member household (or $5963 per person for the larger household). The rationale for the differences arise from the economic realities of each country. In India, households may include surviving grandparents, parents, and children. They typically do not incur any or significant rent expenses every month particularly in rural India, unlike housing in mostly urban developed economies. The cost of food and other essentials are shared within the household by its members in both cases. However, a larger portion of a monthly expenditure goes to food in poor households in developing countries, while housing, conveyance, and other essentials cost significantly more in developed economies.
For its current poverty rate measurements, India calculates two benchmarks. The first includes a basket of goods, including food items but excluding the implied value of home, value of any means of conveyance or the economic value of other essentials created, grown or used without a financial transaction, by the members of a household. The second poverty line benchmark adds rent value of residence as well as the cost of conveyance, but nothing else, to the first benchmark. This practice is similar to those used in developed countries for non-cash income equivalents and a poverty line basis.
India's proposed but not yet adopted official poverty line, in 2014, was ₹972 (US$12) a month in rural areas or ₹1,407 (US$17) a month in cities. The current poverty line is 1,059.42 Indian Rupees (62 PPP USD) per month in rural areas and 1,286 Indian rupees (75 PPP USD) per month in urban areas. India's nationwide average poverty line differs from each state's poverty line. For example, in 2011–2012, Puducherry had its highest poverty line of ₹1,301 (US$16) a month in rural and ₹1,309 (US$16) a month in urban areas, while Odisha had the lowest poverty thresholds of ₹695 (US$8.30) a month for rural and ₹861 (US$10) a month for its urban areas.
Poverty prevalence and estimates
During the 19th and early 20th century, when the country was under British colonial rule, parts of India saw a widespread increase in poverty. Beginning from the 18th century onwards, British officials in India implemented a series of policies which resulted in the de-industrialisation of India by reducing garments and other finished products manufactured by artisans in India. Instead, they imported these products from Britain's expanding industry due to the many industrial innovations of the 19th century. Additionally, the colonial authorities simultaneously encouraged the conversion of more land into farms and more agricultural exports from India. Eastern regions of India along the Ganges river plains, such as those now known as eastern Uttar Pradesh, Bihar, Jharkhand and West Bengal, were dedicated to producing poppy and opium. These items were then exported to southeast and east Asia, particularly China. The East India Company initially held an exclusive monopoly over these exports, and the colonial British institutions later did so as well.
The economic importance of this shift from industry to agriculture in India was large; by 1850, it created nearly 1,000 square kilometres of poppy farms India's fertile Ganges plains. This consequently led to two opium wars in Asia, with the Second Opium War fought between 1856 and 1860. After China agreed to be a part of the opium trade, the colonial government dedicated more land exclusively to poppy. The opium agriculture in India rose from 1850 through 1900, when over 500,000 acres of the most fertile Ganges basin farms were devoted to poppy cultivation. Additionally, opium processing factories owned by colonial officials were expanded in Benares and Patna, and shipping expanded from Bengal to the ports of East Asia such as Hong Kong, all under exclusive monopoly of the British. By the early 20th century, 3 out of 4 Indians were employed in agriculture, famines were common, and food consumption per capita declined in every decade. The issue of Company rule in India and its effects on Indian poverty was raised by Anglo-Irish Whig politician Edmund Burke in the House of Commons of Great Britain; in 1778, Burke began an impeachment trial against East India Company officail Warren Hastings on charges including mismanagement of the Indian economy; Hastings was ultimately cleared of the charges in 1785. Indian historian Rajat Kanta Ray argued the economy established by the East India Company in 18th-century Bengal was a form of plunder and a catastrophe for the traditional economy of India, depleting food and money stocks and imposing high taxes that helped cause the famine of 1770, which killed a third of Bengali population. In London, the late 19th century British parliament debated the repeated incidence of famines in India, and the impoverishment of Indians due to this diversion of agriculture land from growing food staples to growing poppy for opium export under orders of the colonial British empire.
Poverty was intense during colonial era India. Numerous famines and epidemics killed millions of people each. Upper image is from 1876 to 1879 famine in South of British India that starved and killed over 6 million people, while lower image is of child who starved to death during the Bengal famine of 1943.These colonial policies moved unemployed artisans into farming, and transformed India into a region increasingly abundant in land, unskilled labour, and low productivity. This consequently made India scarce in skilled labour, capital and knowledge. On an inflation adjusted 1973 rupee basis, the average income of an Indian agrarian labourer was Rs. 7.20 per year in 1885, against an inflation adjusted poverty line of Rs. 23.90 per year. Thus, not only was the average income below the poverty line, but the intensity of poverty was also severe. The intensity of poverty increased from 1885 to 1921, before being reversed. However, the absolute poverty rates continued to be very high through the 1930s. The colonial policies on taxation and its recognition of land ownership claims of zamindars and mansabdars, or Mughal era nobility, made a minority of families wealthy. Additionally, these policies weakened the ability of poorer peasants to command land and credit. The resulting rising landlessness and stagnant real wages intensified poverty.
The National Planning Committee of 1936 noted the appalling poverty of undivided India.
(...) there was lack of food, of clothing, of housing and of every other essential requirement of human existence... the development policy objective should be to get rid of the appalling poverty of the people.
— Nehru, The Discovery of India, (1946)
The National Planning Committee, notes Suryanarayana, then defined goals in 1936 to alleviate poverty by setting targets in terms of nutrition (2400 to 2800 calories per adult worker), clothing (30 yards per capita per annum) and housing (100 sq. ft per capita). This method of linking poverty as a function of nutrition, clothing and housing continued in India after it became independent from British colonial empire.
These poverty alleviation goals were theoretical, with administrative powers resident in the British Empire. Poverty ravaged India. In 1943, for example, despite rising agricultural output in undivided South Asia, the Bengal famine killed millions of Indians from starvation, disease and destitution. Destitution was so intense in Bengal, Bihar, eastern Uttar Pradesh, Jharkhand and Orissa, that entire families and villages were "wiped out" of existence. Village artisans, along with sustenance farming families, died from lack of food, malnutrition and a wave of diseases. The 1943 famine was not an isolated tragedy. Devastating famines impoverished India every 5 to 8 years in the late 19th century and the first half of the 20th century. Between 6.1 and 10.3 million people starved to death in British India during the 1876–1879 famine, while another 6.1 to 8.4 million people died during the 1896–1898 famine. The Lancet reported that 19 million people died from starvation and the consequences of extreme poverty in British India between 1896 and 1900. Sir MacDonnell observed the suffering and poverty in 1900, and noted, "people died like flies" in Bombay.
After Independence
1950s
Year | Total Population (millions) |
50%lived on (₹ / year) |
95% lived on (₹ / year) |
---|---|---|---|
1956–57 | 359 | 180 | 443 |
1961–62 | 445 | 204 | 498 |
1967–68 | 514 | 222 | 512 |
Minhas published his estimates of poverty rates in 1950s India as cyclical and a strong function of each year's harvest. Minhas disagreed with the practice of using calories as the basis for poverty estimation and proposed a poverty line based on real expenditure per year (Rs 240 per annum). In 1956–57, a good harvest year, he computed India's poverty rate to be 65% (215 million people). For 1960, Minhas estimated the poverty to be 59%.
1960s
A Working Group was formed in 1962 to attempt to set a poverty line for India. This Working Group used calories required for survival, and income needed to buy those calories in different parts of rural India, to derive an average poverty line of Rs. 20 per month at 1960–61 prices.
Estimates of poverty in India during the 1960s varied widely. Dandekar and Rath, on the behalf of then Indian government, estimated that the poverty rate in 1960s remained generally constant at 41%. Ojha, in contrast, estimated that there were 190 million people (44%) in India below official poverty limit in 1961, and that this below-poverty line number increased to 289 million people (70%) in 1967. Bardhan also concluded that Indian poverty rates increased through the 1960s, reaching a high of 54%. Those above the 1960s poverty level of Rs 240 per year, were in fragile economic groups as well and not doing well either. Minhas estimated that 95% of India's people lived on Rs 458 per year in 1963–64, while the richest 5% lived on an average of Rs 645 per year (all numbers inflation adjusted to 1960–61 Rupee).
1970s – 1980s
Dandekar and Rath in 1971 used a daily intake of 2,250 calories per person to define the poverty line for India. Using NSSO data regarding household expenditures for 1960–61, they determined that in order to achieve this food intake and other daily necessities, a rural dweller required an annual income of ₹ 170.80 per year (₹ 14.20 per month, adjusted to 1971 Rupee). An urban dweller required ₹ 271.70 per year (₹ 22.60 per month). They concluded from this study that 40 percent of rural residents and 50 percent of urban residents were below the poverty line in 1960–61.
Poverty alleviation has been a driver for India's Planning Commission's Task Force on Projections of Minimum Needs and Effective Consumption Demand of the Perspective Planning Division. This division, in 1979, took into account differences in calorie requirements for different age groups, activity levels, and sex. They determined that the average rural dweller needed around 2400 calories, and those in urban areas required about 2100 calories per person per day. To satisfy the food requirement, the Task Force estimated that a consumer spending in 1973–74 of Rs.49.09 per person per month in rural areas and Rs.56.64 in urban areas was appropriate measure to estimate its poverty line.
Poverty remained stubbornly high in India through the 1970s and 1980s. It created slogans such as Garibi Hatao (meaning eliminate poverty) for political campaigns, during elections in early 1970s through the 1980s. Rural poverty rate exceeded 50%, using India's official poverty line for 1970s.
Additionally, in 1976, the Indian government passed the Bonded Labor System Act in an effort to end debt bondage in India, a practice which contributes to generational poverty. Nevertheless, this system is still in place today due to weak enforcement of this law.
1990s
Another Expert Group was instituted in 1993, chaired by Lakdawala, to examine poverty line for India. It recommended that regional economic differences are large enough that poverty lines should be calculated for each state. From then on, a standard list of commodities were drawn up and priced in each state of the nation, using 1973–74 as a base year. This basket of goods could then be re-priced each year and comparisons made between regions. The Government of India began using a modified version of this method of calculating the poverty line in India.
There are wide variations in India's poverty estimates for 1990s, in part from differences in the methodology and in the small sample surveys they poll for the underlying data. A 2007 report for example, using data for late 1990s, stated that 77% of Indians lived on less than ₹ 20 a day (about US$0.50 per day). In contrast, S.G.Datt estimated India's national poverty rate to be 35% in 1994, at India's then official poverty line of Rs 49 per capita, with consumer price index adjusted to June 1974 rural prices.
2000s
The Saxena Committee report, using data from 1972 to 2000, separated calorific intake apart from nominal income in its economic analysis of poverty in India, and then stated that 50% of Indians lived below the poverty line. The Planning Commission of India, in contrast, determined that the poverty rate was 39%.
The National Council of Applied Economic Research estimated that 48% of the Indian households earn more than ₹90,000 (US$1,078.40) annually (or more than US$ 3 PPP per person). According to NCAER, in 2009, of the 222 million households in India, the absolutely poor households (annual incomes below ₹45,000 (US$540)) accounted for only 15.6% of them or about 35 million (about 200 million Indians). Another 80 million households are in the income levels of ₹45,000 (US$540) to ₹90,000 (US$1,100) per year. These numbers are similar to World Bank estimates of the "below-the-poverty-line" households that may total about 100 million (or about 456 million individuals).
The Suresh Tendulkar Committee set up to look into the people living under the poverty line in India submitted its report in November 2009. It provided a new method of calculating the poverty line based on per capita consumption expenditure per month or day. For rural areas, it was Rs 816 per month or Rs 27 per day. For urban areas, it was Rs 1000 per month or Rs 33 per day. Using this methodology, the population below the poverty line in 2009–2010 was 354 million (29.6% of the population) and that in 2011–2012 was 269 million (21.9% of the population).
Reserve Bank of India (2012)
In its annual report of 2012, the Reserve Bank of India named the state of Goa as having the least poverty of 5.09% while the national average stood at 21.92% The table below presents the poverty statistics for rural, urban and combined percentage below poverty line (BPL) for each State or Union Territory. The highest poverty statistics for each category column is coloured light red and the lowest poverty statistics for each category column is coloured light Blue in the table below.
State or Union Territory | No. of Persons (Thousands) Rural |
% of Persons (Rural) below poverty line |
Poverty line (Rs)/month (Rural) | No. of Persons (Thousands) Urban |
% of Persons (Urban) below poverty line |
Poverty line (Rs)/month (Urban) | No. of Persons (Thousands) Combined |
% of Persons (Combined) below poverty line |
---|---|---|---|---|---|---|---|---|
Andhra Pradesh | 6180 | 10.96 | 860.00 | 1698 | 5.81 | 1009.00 | 7878 | 9.20 |
Arunachal Pradesh | 425 | 38.93 | 930.00 | 66 | 20.33 | 1060.00 | 491 | 34.67 |
Assam | 9206 | 33.89 | 828.00 | 921 | 30.49 | 1008.00 | 10127 | 31.98 |
Bihar | 32040 | 34.06 | 778.00 | 3775 | 31.23 | 923.00 | 35815 | 33.74 |
Chhattisgarh | 8890 | 44.61 | 738.00 | 1522 | 24.75 | 849.00 | 10411 | 39.93 |
Goa | 37 | 6.81 | 1090.00 | 38 | 4.09 | 1134.00 | 75 | 5.09 |
Gujarat | 7535 | 21.50 | 932.00 | 2688 | 10.14 | 1152.00 | 10223 | 16.63 |
Haryana | 1942 | 11.64 | 1015.00 | 941 | 10.28 | 1169.00 | 2883 | 11.16 |
Himachal Pradesh | 529 | 8.48 | 913.00 | 30 | 4.33 | 1064.00 | 559 | 8.06 |
Jammu & Kashmir | 1073 | 11.54 | 891.00 | 253 | 7.20 | 988.00 | 1327 | 10.35 |
Jharkhand | 10409 | 40.84 | 748.00 | 2024 | 24.83 | 974.00 | 12433 | 36.96 |
Karnataka | 9280 | 24.53 | 902.00 | 3696 | 15.25 | 1089.00 | 12976 | 20.91 |
Kerala | 1548 | 9.14 | 1018.00 | 846 | 4.97 | 987.00 | 2395 | 7.05 |
Madhya Pradesh | 19095 | 35.74 | 771.00 | 4310 | 21.00 | 897.00 | 23406 | 31.65 |
Maharashtra | 15056 | 24.22 | 967.00 | 4736 | 9.12 | 1126.00 | 19792 | 17.35 |
Manipur | 745 | 38.80 | 1118.00 | 278 | 32.59 | 1170.00 | 1022 | 36.89 |
Meghalaya | 304 | 12.53 | 888.00 | 57 | 9.26 | 1154.00 | 361 | 11.87 |
Mizoram | 191 | 35.43 | 1066.00 | 37 | 6.36 | 1155.00 | 227 | 20.40 |
Nagaland | 276 | 19.93 | 1270.00 | 100 | 16.48 | 1302.00 | 376 | 18.88 |
Odisha | 12614 | 35.69 | 695.00 | 1239 | 17.29 | 861.00 | 13853 | 32.59 |
Punjab | 1335 | 7.66 | 1054.00 | 982 | 9.24 | 1155.00 | 2318 | 8.26 |
Rajasthan | 8419 | 16.05 | 905.00 | 1873 | 10.69 | 1002.00 | 10292 | 14.72 |
Sikkim | 45 | 9.85 | 930.00 | 6 | 3.66 | 1226.00 | 51 | 8.19 |
Tamil Nadu | 5923 | 15.83 | 880.00 | 2340 | 6.54 | 937.00 | 8263 | 11.28 |
Tripura | 449 | 16.53 | 798.00 | 75 | 7.42 | 920.00 | 524 | 14.05 |
Uttar Pradesh | 47935 | 30.40 | 768.00 | 11884 | 26.06 | 941.00 | 59819 | 29.43 |
Uttarakhand | 825 | 11.62 | 880.00 | 335 | 10.48 | 1082.00 | 1160 | 11.26 |
West Bengal | 14114 | 22.52 | 783.00 | 4383 | 14.66 | 981.00 | 18498 | 19.98 |
Andaman & Nicobar Islands | 4 | 1.57 | – | 0 | 0.00 | – | 4 | 1.00 |
Chandigarh | 0 | 0.00 | – | 234 | 22.31 | – | 235 | 21.81 |
Dadra & Nagar Haveli | 115 | 62.59 | – | 28 | 15.38 | – | 143 | 39.31 |
Daman and Diu | 0 | 0.00 | – | 26 | 12.62 | – | 26 | 9.86 |
Delhi | 50 | 12.92 | 1145.00 | 1646 | 9.84 | 1134.00 | 1696 | 9.91 |
Lakshadweep | 0 | 0.00 | – | 2 | 3.44 | – | 2 | 2.77 |
Puducherry | 69 | 17.06 | 1301.00 | 55 | 6.30 | 1309.00 | 124 | 9.69 |
India | 216658 | 25.70 | 816.00 | 53125 | 13.70 | 1000.00 | 269783 | 21.92 |
2010s
The World Bank has reviewed its poverty definition and calculation methodologies several times over the last 25 years. In early 1990s, The World Bank anchored absolute poverty line as $1 per day. This was revised in 1993, and the absolute poverty line was set at $1.08 a day for all countries on a purchasing power parity (PPP) basis, after adjusting for inflation to the 1993 US dollar. In 2005, after extensive studies of the cost of living across the world, The World Bank raised the measure for global poverty line to reflect the observed higher cost of living. Thereafter, the World Bank determined poverty rates from those living on less than US$1.25 per day on 2005 PPP basis, a measure that has been widely used in media and scholarly circles.
In May 2014, after revisiting its poverty definition, methodology and economic changes around the world, the World Bank proposed another major revision to PPP calculation methodology, international poverty line and indexing it to 2011 US dollar. The new method proposes setting poverty line at $1.78 per day on 2011 PPP basis. According to this revised World Bank methodology, India had 179.6 million people below the new poverty line, China had 137.6 million, and the world had 872.3 million people below the new poverty line on an equivalent basis as of 2013. India, in other words, while having 17.5% of total world's population, had 20.6% share of world's poor. In October 2015, the World Bank updated the international poverty line to US$1.90 a day.
The Rangarajan Committee set up to look into the poverty line estimation in India submitted its report in June 2014. It amended the calculation of the poverty line based on per capita consumption expenditure per month or day given by the Tendulkar Committee. The new poverty threshold for rural areas was fixed at Rs 972 per month or Rs 32 per day. For urban areas, it was fixed at Rs 1407 per month or Rs 47 per day. Under this methodology, the population below the poverty line in 2009–2010 was 454 million (38.2% of the population) and that in 2011–2012 was 363 million (29.5% of the population).
From November 2017, the World Bank started reporting poverty rates for all countries using two new international poverty lines: a "lower middle-income" line set at $3.20 per day and an "upper middle-income" line set at $5.50 per day. These are in addition to the earlier poverty line of $1.90 per day. The new lines are supposed to serve two purposes. One, they account for the fact that achieving the same set of capabilities may need a different set of goods and services in different countries and, specifically, a costlier set in richer countries. Second, they allow for cross-country comparisons and benchmarking both within and across developing regions. India falls in the lower middle-income category. Using the $3.20 per day poverty line, the percentage of the population living in poverty in India (2011) was 60%. This means that 763 million people in India were living below this poverty line in 2011.
2020s
The Ministry of Statistics and Programme Implementation conducted the Household Consumption Expenditure Survey (HCES) during August 2022 to July 2023 and the factsheet was published on 24 February 2024. This survey on household consumption expenditure was aimed at generating estimates of household Monthly Per Capita Consumption Expenditure (MPCE) and its distribution separately for rural and urban areas. The below table shows the average MPCE (in rupees) across fractile classes (all-India) in 2022-23:
Fractile class of MPCE | Average MPCE in rupees (with imputation*) |
Average MPCE in rupees (without imputation) | ||
---|---|---|---|---|
Rural | Urban | Rural | Urban | |
0-5% | 1,441 | 2,087 | 1,373 | 2,001 |
5-10% | 1,864 | 2,695 | 1,782 | 2,607 |
10-20% | 2,196 | 3,241 | 2,112 | 3,157 |
20-30% | 2,540 | 3,839 | 2,454 | 3,762 |
30-40% | 2,856 | 4,422 | 2,768 | 4,348 |
40-50% | 3,183 | 5,032 | 3,094 | 4,963 |
50-60% | 3,545 | 5,726 | 3,455 | 5,662 |
60-70% | 3,978 | 6,579 | 3,887 | 6,524 |
70-80% | 4,551 | 7,721 | 4,458 | 7,673 |
80-90% | 5,447 | 9,625 | 5,356 | 9,582 |
90-95% | 6,725 | 12,430 | 6,638 | 12,399 |
95-100% | 10,581 | 20,846 | 10,501 | 20,824 |
All classes | 3,860 | 6,521 | 3,773 | 6,459 |
*Imputation includes quantity of consumption for a number of items, received and consumed free of cost through various social welfare programmes.
Based on the above consumption expenditure survey, a State Bank of India report stated that rural poverty was 7.2% and urban poverty was 4.6% in 2022-23 with a new consumption expenditure-based poverty line for India of Rs 1,622 per person per month for rural areas and Rs 1,929 per person per month for urban areas in India based on the recommendations of the Suresh Tendulkar committee.
Semi-economic measures of poverty
Other measures such as the semi-economic Multi-dimensional Poverty Index (MPI), which places 33% weight on education and number of schooling years in its definition of poverty, and places 6.25% weight on income and assets owned, suggests there were 650 million people (53.7% of population) living in MPI-poverty in India. 421 million of MPI-defined poor are concentrated in eight North Indian and East Indian states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal. The table below presents this semi-economic poverty among the states of India based on the Multi-dimensional Poverty Index, using a small sample survey data for Indian states in 2005.
MPI rank | States | Population (in millions) 2007 | MPI | Proportion of MPI-poor | Average intensity | Contribution to overall MPI-poverty | Number of MPI poor (in millions) |
---|---|---|---|---|---|---|---|
— | India | 1,164.7 | 0.296 | 55.4% | 53.5% | – | 645.0 |
1 | Kerala | 35.0 | 0.065 | 15.9% | 40.9% | 0.6% | 5.6 |
2 | Goa | 1.6 | 0.094 | 21.7% | 43.4% | 0.0% | 0.4 |
3 | Punjab | 27.1 | 0.120 | 26.2% | 46.0% | 1.0% | 7.1 |
4 | Himachal Pradesh | 6.7 | 0.131 | 31.0% | 42.3% | 0.3% | 2.1 |
5 | Tamil Nadu | 68.0 | 0.141 | 32.4% | 43.6% | 2.6% | 22.0 |
6 | Uttarakhand | 9.6 | 0.189 | 40.3% | 46.9% | 0.5% | 3.9 |
7 | Maharashtra | 108.7 | 0.193 | 40.1% | 48.1% | 6.0% | 43.6 |
8 | Haryana | 24.1 | 0.199 | 41.6% | 47.9% | 1.3% | 10.0 |
9 | Gujarat | 98.3 | 0.205 | 21.5% | 49.2% | 0.4% | 0.8 |
10 | Jammu and Kashmir | 12.2 | 0.209 | 43.8% | 47.7% | 0.7% | 5.4 |
11 | Andhra Pradesh | 83.9 | 0.211 | 44.7% | 47.1% | 5.1% | 37.5 |
12 | Karnataka | 58.6 | 0.223 | 46.1% | 48.3% | 4.2% | 27.0 |
13 | Northeast Indian States | 44.2 | 0.303 | 57.6% | 52.5% | 4.0% | 25.5 |
14 | West Bengal | 89.5 | 0.317 | 58.3% | 54.3% | 8.5% | 52.2 |
15 | Orissa | 40.7 | 0.345 | 64.0% | 54.0% | 4.3% | 26.0 |
16 | Rajasthan | 65.4 | 0.351 | 64.2% | 54.7% | 7.0% | 41.9 |
17 | Uttar Pradesh | 192.6 | 0.386 | 69.9% | 55.2% | 21.3% | 134.7 |
18 | Chhattisgarh | 23.9 | 0.387 | 71.9% | 53.9% | 2.9% | 17.2 |
19 | Madhya Pradesh | 70.0 | 0.389 | 69.5% | 56.0% | 8.5% | 48.6 |
20 | Jharkhand | 30.5 | 0.463 | 77.0% | 60.2% | 4.2% | 23.5 |
21 | Bihar | 95.0 | 0.499 | 81.4% | 61.3% | 13.5% | 77.3 |
Other estimates
According to a 2011 poverty Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, with India's poverty rate projected to drop from 51% in 1990 to about 22% in 2015. The report also indicates that in Southern Asia, only India is on track to cut poverty by half by the 2015 target date. In 2015, according to United Nations Millennium Development Goals (MGD) programme, India has already achieved the target of reducing poverty by half, with 24.7% of its 1.2 billion people in 2011 living below the poverty line or having income of less than $1.25 a day, the U.N. report said. The same figure was 49.4% in 1994. India had set a target of 23.9% to be achieved by 2015.
According to Global Wealth Report 2016 compiled by Credit Suisse Research Institute, India is the second most unequal country in the world with the top one per cent of the population owning 58% of the total wealth.
According to the World Food Programme, around 21.25% of India's population live on less than US$1.90 a day. The WFP also says that India is home to a quarter of the world's undernourished people.
- Global Hunger Index
Global Hunger Index (GHI) is an index that places a third of weight on proportion of the population that is estimated to be undernourished, a third on the estimated prevalence of low body weight to height ratio in children younger than five, and remaining third weight on the proportion of children dying before the age of five for any reason. According to 2011 GHI report, India has improved its performance by 22% in 20 years, from 30.4 to 23.7 over 1990 to 2011 period. However, its performance from 2001 to 2011 has shown little progress, with just 3% improvement. A sharp reduction in the percentage of underweight children has helped India improve its hunger record on the Global Hunger Index (GHI) 2014. India now ranks 55 among 76 emerging economies. Between 2005 and 2014, the prevalence of underweight children under the age of five fell from 43.5% to 30.7%.
Poverty: 2011–2012 Percentage of people by Caste
Findings below are based on a survey conducted during 2011–12. Total population of India then: 1,276,267,631
Caste-wise population distribution:
Caste | % of total population | No. of People |
---|---|---|
FC | 28.0% | 357M |
OBC | 44.1% | 563M |
SC | 19.0% | 242M |
ST | 8.9% | 114M |
Total | 100% | 1276M |
Poverty in India based on caste:
Caste | % of Poverty (intra-caste) | No. of People | % of Poverty in total population |
---|---|---|---|
FC | 12.5% | 44.6M | 3.5% |
OBC | 20.7% | 116.5M | 9.1% |
SC | 29.4% | 71.2M | 5.8% |
ST | 43.0% | 49.0M | 3.8% |
Total | - | 281M | 22% |
From the above 2 tables, we could derive the following to see if the distribution of poverty follows as that of the total population:
Caste | % of total population | Poverty % over poverty population |
---|---|---|
FC | 28.0% | 15.9% |
OBC | 44.1% | 41.4% |
SC | 19.0% | 25.3% |
ST | 8.9% | 17.4% |
Poverty in India based on Social and Religious Classes: The Sachar Committee looked at the Poverty by Social and Religious Classes
Social and Religious Class | Percentage of Living in Poverty |
---|---|
Urban Hindus | 20.4% |
Urban Hindu General | 8.3% |
Urban Hindu OBC | 25.1% |
Urban Hindu SC/ST | 36.4% |
Urban Muslims | 38.4% |
Urban Other Minorities | 12.2% |
Rural Hindus | 22.6% |
Rural Hindu General | 9.0% |
Rural Hindu OBC | 19.5% |
Rural Hindu SC/ST | 34.8% |
Rural Muslims | 26.9% |
Rural Other Minorities | 14.3% |
Reduction in poverty
Main article: Poverty alleviation programmes in IndiaSince the 1950s, the Indian government and non-governmental organisations have initiated several programs to alleviate poverty, including subsidising food and other necessities, increased access to loans, improving agricultural techniques and price supports, promoting education, and family planning. These measures have helped eliminate famines, cut absolute poverty levels by more than half, and reduced illiteracy and malnutrition.
Although the Indian economy has grown steadily over the last two decades, its growth has been uneven when comparing social groups, economic groups, geographic regions, and rural and urban areas. For the year 2015–16, the GSDP growth rates of Andhra Pradesh, Bihar and Madhya Pradesh was higher than Maharashtra, Odisha or Punjab. Though GDP growth rate matters a lot economically, the debate is moving towards another consensus in India, where unhealthy infatuation with GDP growth matters less and holistic development or all-inclusive growth matters more. While India may well be on the path to eradicating extreme poverty, it still lags well behind in other important development indicators, even in comparison to some of its neighbouring countries, especially in regard to health and education.
Despite significant economic progress, one quarter of the nation's population earns less than the government-specified poverty threshold of ₹32 per day (approximately US$ 0.6).
According to the 2001 census, 35.5% of Indian households used banking services, 35.1% owned a radio or transistor, 31.6% a television, 9.1% a phone, 43.7% a bicycle, 11.7% a scooter, motorcycle or a moped, and 2.5% a car, jeep or van; 34.5% of the households had none of these assets. As part of creating the capacity to give access to individuals who are still outside the scope of financial services, Confederation of Indian Industry's president Sanjiv Bajaj called for additional new banks and non-banking financial companies.
According to Department of Telecommunications of India, the phone density reached 73.34% by December 2012 and as an annual growth decreased by −4.58%. This tallies with the fact that a family of four with an annual income of ₹137,000 (US$1,600) could afford some of these luxury items.
The World Bank's Global Monitoring Report for 2014–15 on the Millennium Development Goals says India has been the biggest contributor to poverty reduction between 2008 and 2011, with around 140 million or so lifted out of absolute poverty. On July 17, 2023, a NITI Aayog report highlighted that 13.5 crore People were lifted out of multidimensional poverty between 2015–16 and 2019–21. The report was developed using the most recent data from National Family Health Survey conducted between 2019 and 2021 and represents the second iteration of the National Multidimensional Poverty Index. Since the early 1950s, the Indian government has initiated various schemes to help the poor attain self-sufficiency in food production. A few examples of these initiatives include ration cards and price controls over the supply of basic commodities, particularly food at controlled prices, available throughout the country. These efforts prevented famines, but did little to eliminate or reduce poverty in rural or urban areas between 1950 and 1980.
India's rapid economic growth rate since 1991 is one of the main reasons for a record decline in poverty. Another reason proposed is India's launch of social welfare programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the Midday Meal Scheme in government schools. In a 2012 study, Klonner and Oldiges, concluded that MGNREGA helps reduce rural poverty gap (intensity of rural poverty) and seasonal poverty, but not overall poverty. However, there is a disturbing side, as deprivation has tended to increase, and that too among the most deprived sections. According to the latest statistics published by the Census of India, among scheduled tribes, 44.7% of people were farmers working on their own land in 2001; however, this number came down to 34.5% in 2011. Among scheduled castes, this number declined from 20% to 14.8% during the same period. This data is corroborated by other data from the census, which also says that the number of people who were working on others' land (landless laborers), increased from 36.9% in 2001 to 44.4% among scheduled castes SC and from 45.6% to 45.9% among scheduled tribes.
India has achieved annual growth exceeding 7 percent over the last 15 years and continues to pull millions of people out of poverty, according to the World Bank. The country has halved its poverty rate over the past three decades and has seen strong improvements in most human development outcomes, a report by the international financial institution has found. Growth is expected to continue and the elimination of extreme poverty in the next decade is within reach, said the bank, which warned that the country's development trajectory faces considerable challenges.
UN
According to a United Nations report on 12 July 2023, India lifted approximately 415 million individuals out of poverty between 2005/2006 and 2019/2021. The United Nations reported that 25 nations, including India, achieved a remarkable milestone by reducing their global MPI (Multidimensional Poverty Index) values by half within a span of 15 years. Additionally, the report highlighted that India experienced a reduction in deprivation across all indicators, with notable progress seen among the most impoverished states and marginalised populations, including children and disadvantaged caste groups.
See also
- Economic and socio-economic
- Economy of India
- Income in India
- India State Hunger Index
- Poverty rate by state
- Labour in India
- Social issues in India
- Hawker (trade)
- Debt bondage in India
- Housing
- Illegal housing in India
- List of slums in India
- Housing in India
- Pavement dwellers
- Street children in India
- Utilities
- Corruption
- Other
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Further reading
- Breman, Jan; et al. (2019). "Chapter 6: A Mirage of Welfare: How the Social Question in India Got Aborted". The Social Question in the Twenty-First Century: A Global View. Oakland, California: University of California Press. doi:10.1525/luminos.74.g. ISBN 978-0520302402. S2CID 230116593.
- "Poverty in India". World Bank.
- "Can India eradicate poverty? Will India's economic boom help the poor?". Archived from the original on 5 March 2016.
- Deaton, A.; Kozel, V. (11 August 2005). "Data and Dogma: The Great Indian Poverty Debate" (PDF). The World Bank Research Observer. 20 (2): 177–199. doi:10.1093/wbro/lki009. ISSN 0257-3032.
- "World Hunger – India". 11 February 2009. Archived from the original on 11 February 2009.
- George, Abraham. "Why the Fight Against Poverty is Failing: A Contrarian View". Wharton Business School Publications.
- Rohr, Mathieu von (9 August 2007). "Poverty and riches in booming India". Der Spiegel.
External links
- Media related to Poverty in India at Wikimedia Commons
- "Poverty in India 2".
- Tendulkar, Suresh. "Expert Group on Methodology for Estimation of Poverty".
- "From poverty to empowerment: India's imperative for jobs, growth, and effective basic services". McKinsey Global Institute. 2013.
- Perspectives on Poverty in India (PDF). The World Bank. 2013. ISBN 978-0-8213-8689-7.
- "Chapter 4: DEFINING AND EXPLAINING INCLUSIVE GROWTH AND POVERTY". INDIA (PDF). International Monetary Fund. 2014.
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