{"id":193485,"date":"2022-07-01T20:37:46","date_gmt":"2022-07-01T15:07:46","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=193485"},"modified":"2022-07-01T20:37:46","modified_gmt":"2022-07-01T15:07:46","slug":"the-worrying-slowdown-in-indias-fight-against-poverty","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-worrying-slowdown-in-indias-fight-against-poverty\/","title":{"rendered":"The worrying slowdown in India\u2019s fight against poverty"},"content":{"rendered":"\n

Context<\/strong>: A new poverty estimate has been released by SBI Research.<\/p>\n

What do the findings of the recent estimates suggest?<\/h5>\n

As per SBI Research, Poverty in India declined<\/strong> to 17.9% in 2020-21, compared with the last available official estimate of 21.9% in 2011-12.<\/p>\n

These new estimates suggest an annual decline of 2.75 million<\/strong> in our number of poor during 2012-21, as against a drop of 20 million every year between 2004-05 and 2011-12.<\/p>\n

The data confirms a sharp slowdown in India\u2019s rate of poverty reduction<\/strong> by two other estimates by authors affiliated to the World Bank and International Monetary Fund released earlier this year.<\/p>\n

Data indicating a slowdown in poverty reduction<\/h5>\n

There is sufficient evidence to suggest that economic conditions of most people at the bottom of the distribution have worsened.<\/p>\n

PLFS Data<\/strong><\/span><\/p>\n

P<\/strong>er capita real income from PLFS surveys also shows a 1.1% decline per annum<\/strong> between 2018-19 and 2020-21. The PLFS also reports that the drop was largely due to weakening urban per capita incomes, which went down by 4.2% per year over that period.<\/p>\n

–<\/strong> Consumption expenditure, from PLFS data, shows per capita monthly consumption declining<\/strong> at 0.12% per annum between the years 2018-19 to 2020-21. Once again, it was urban areas that saw a decline in per capita consumption, at 4% per annum, as against a rise in rural per capita consumption of an annual 3.7%.<\/p>\n

–<\/strong> PLFS data also shows that the proportion of India\u2019s population for whom per capita income was not sufficient to meet consumption expenditure was 26% in 2018-19, which increased to 29% in 2020-21.<\/p>\n

Both agricultural as well as non-agricultural wages fell in the last year<\/strong>, with farm wages declining at an annual 2% and non-farm wages at 3.8%.<\/p>\n

Urban income and consumption declines raise questions on claims of an economic revival.<\/p>\n

What are the implications?<\/h5>\n

The decline in India\u2019s trend of poverty reduction in the last decade is worrying.<\/p>\n

But what is also a worry is the sharper decline in urban incomes, which has implications for a demand revival in the economy.<\/p>\n

While it may have contributed to reduced inequality, it also poses a problem of sustaining economic growth.<\/p>\n

Some of these trends could worsen in the wake of an inflationary spiral India is going through that will reduce real disposable incomes.<\/p>\n

Way forward<\/h5>\n

Clarity on poverty may be unavailable until data on consumption expenditure is available.<\/p>\n

However, the trends in evidence raise concerns on the rising vulnerability of people and sustainability of growth.<\/p>\n

These require an immediate response, irrespective of our poverty debate.<\/p>\n

Source<\/strong>: This post is based on the article \u201cThe worrying slowdown in India\u2019s fight against poverty<\/strong>\u201d published in Livemint<\/strong> on 1st Jul 22<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Context: A new poverty estimate has been released by SBI Research. What do the findings of the recent estimates suggest? As per SBI Research, Poverty in India declined to 17.9% in 2020-21, compared with the last available official estimate of 21.9% in 2011-12. These new estimates suggest an annual decline of 2.75 million in our… Continue reading The worrying slowdown in India\u2019s fight against poverty<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10501],"class_list":["post-193485","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704833559},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/193485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=193485"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/193485\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=193485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=193485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=193485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}