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Dr. Amit Kapoor
Honorary Chairman, Institute for Competitiveness, India
     & Professor of Strategy, MDI, Gurgaon, India
Poverty Concept and Definitions




Narrow vs Broader Definitions:

Nolan and Whelan define poverty in terms of the inability to participate in society
(which is broader than more ‘absolute’ definitions confined to subsistence needs),
but emphasize that what is distinctive is the ‘inability to participate owing to lack of
resources’ (1996: 188).

By implication they exclude non-material elements found in broad UN
definitions, for example: ‘lack of participation in decision-making’, ‘a violation of
human dignity’, ‘powerlessness’ and ‘susceptibility to violence’ (cited in
Langmore, 2000: 37). Similarly, they exclude some of the non-material aspects
emphasized by people in poverty themselves, such as lack of voice, respect and
self-esteem, isolation and humiliation (UKCAP, 1997; Galloway, 2002).




  Source: World bank,2012
Poverty Concept and Definitions


Income or Living Standards:

Another source of variation in definitions of poverty, reflected in the literature on
measurement, lies in whether they are rooted in conceptualizations that are
concerned with, on the one hand, a person’s material resources, especially
income, and, on the other, with actual outcomes in terms of living standards and
activities (Nolan and Whelan, 1996).

Put simply, someone is ‘“poor” when they have both a low standard of living and
a low income’ (Gordon et al., 2000b: 91).

A. B. Atkinson makes a related, but more fundamental, distinction between a
concern with standard of living and a concern with a citizen’s ‘right to a minimum
level of resources’ (1989: 12, emphasis added).




 Source: World bank,2012
Poverty Concept and Definitions


Income Or Capabilities:

Amartya Sen offers an alternative perspective on the role of low income in the
definition of poverty. It has been hugely influential within the international
development context, contributing to a paradigm shift in the meaning of
development away from economic growth and GDP to a focus on ‘poverty as a
denial of choices and opportunities for living a tolerable life’ (UNDP, 1997: 2;
Vizard, 2001).

The human poverty and development indices published in the annual UNDP
Human Development Report reflect Sen’s approach.

Sen takes a step backwards from both income and living standards to ask why
they matter. His answer is that they don’t matter in their own right, for they are
simply instrumental to what really matters, namely the kind of life that a person is
able to lead and the choices and opportunities open to her in leading that life. At
the heart of his approach is an understanding of living as involving ‘being and
doing’.
 Source: World bank,2012
Poverty Concept and Definitions


Absolute and Relative Poverty:

This distinction has been central to post-war debates about how to define poverty.
Definitions deployed in the late nine- tenth and early twentieth century by Charles
Booth and Seebohm Rowntree, the pioneers of modern poverty research, were
supposedly ‘absolute’ in the sense that poverty was said to be understood as lacking
sufficient money to meet basic physical needs.

At its most basic, absolute poverty is defined in terms of survival; more commonly it
refers to subsistence, linked to a basic standard of physical capacity necessary for
production (paid work) and reproduction (the bearing and nurturing of children).

The notion of ‘relative’, which links the concepts of relative poverty and
deprivation, needs unpacking, as it embraces a number of different meanings. Broadly
these fall into two, interrelated, categories concerning, first, the nature of the
comparisons to be made in judging whether poverty exists and, second, the nature of
human needs.

 Source: World bank,2012
500
                                                                                              1000
                                                                                                                    1500
                                                                                                                              2000
                                                                                                                                     2500




                                                                       0
                                                                            693.8                    926.4

                                                                             773.7                      925.2

                                                                            691.7                    871

                                                                            655.6            775.3

                                                                           617.3             806.7

                                                                             747.8                      1040.3

                                                                                   931                          1025.4




Source: Planning Commission, 2012
                                                                             725.9                    951.4

                                                                              791.6                        975.4

                                                                             708                     888.3

                                                                             722.9                   845.4

                                                                           616.3             831.2

                                                                           629.4                  908




                                    RURAL(Monthly per capita in Rs)
                                                                             775.3                    830.7

                                                                           631.9             771.7

                                                                             743.7                     961.1

                                                                                   871                        955

                                                                            686.9                     989.8

                                                                               850                          939.3

                                                                                   1016.8                            1147.6

                                                                           567.1            736
                                                                                                                                            Poverty Line Urban and Rural in India




                                    URBAN (Monthly per capita in Rs)
                                                                            641              777.7

                                                                               830                         960.8

                                                                              755                     846

                                                                             728.9                     1035.2

                                                                            639              800.8

                                                                            663.4             782.7

                                                                            663.7             799.9

                                                                             719.5                   898.6

                                                                            643.2             830.6
Poverty according to Tendulkar Methodology
         West Bengal                            34.2                                      26.7
         Uttarakhand                           32.7                                18
        Uttar Pradesh                               40.9                                                    37.7
               Tripura                              40                                        17.4
          Tamil Nadu                         29.4                           17.1
                Sikkim                        30.9                          13.1
            Rajasthan                           34.4                                      24.8
               Punjab                 20.9                     15.9
                Orissa                                         57.2                                                           37
            Nagaland          8.8                 20.9
             Mizoram                15.4                    21.1
           Meghalaya                16.1                   17.1
             Manipur                             37.9                                                        47.1
         Maharashtra                             38.2                                          24.5
     Madhya Pradesh                                        48.6                                                      36.7
                Kerala                19.6                   12
           Karnataka                           33.3                                     23.6
           Jharkhand                                   45.3                                                        39.1
   Jammu & Kashmir             13.1              9.4
    Himachal Pradesh                   22.9                   9.5
              Haryana                   24.1                             20.1
               Gujarat                      31.6                                     23
                   Goa                  24.9                       8.7
                 Delhi          13                 14.2
         Chhattisgarh                                      49.4                                                             48.7
                 Bihar                                        54.4                                                                 53.5
                Assam                          34.4                                                  37.9
   Arunachal Pradesh                          31.4                                     25.9
      Andhra Pradesh                         29.6                               21.1

                         0                            20                        40                           60                    80     100   120

                             % age of Persons below Poverty line (Tendulkar Methodology)-2004-05
                             % age of Persons below Poverty line (Tendulkar Methodology)-2009-10
Source: Planning Commission
Poverty headcount ratio at $2 a day (PPP) (% of population) 2011 or last year available




           Nigeria                                                                       84.49



      South Africa                             31.33



Russian Federation       0.05



          Rwanda                                                                       82.37



             India                                                        68.72



            China                             29.79



            Brazil              10.82


                     0              10   20           30   40   50   60           70     80      90

 Source: World bank,2012
Poverty headcount ratio at $1.25 a day (PPP) (% of population) 2011 or last year
                                            available




           Nigeria                                                         67.98



      South Africa                  13.77



          Rwanda                                                   63.17



Russian Federation       0



             India                               32.67



            China                   13.06



            Brazil           6.14


                     0               10     20    30     40   50   60              70   80

     Source: World bank,2012
Gini Index 2011 or last year available




70



60



50



40


                                                                                  63.14
30
          54.69
                                                                      50.82                   48.83
                          42.48
20                                                     40.11
                                         33.38

10



 0
          Brazil          China          India   Russian Federation   Rwanda   South Africa   Nigeria

Source: World bank,2012
Cities in India

                                                 8

                                                               KE                                                                                    UP
                                                 7

                                                                                                                                 MH
 Number of Megacities (Population > 1 Million)




                                                 6



                                                 5

                                                                                                     GJ MP               TN
                                                 4

                                                                     JH                             RJ                      AP
                                                 3

                                                                    CH         PB                                                               WB
                                                 2

                                                          JK              DL        HR        BH
                                                                                              KA
                                                 1

                                                     HP    AS UK
                                                            NE       OR
                                                 0
                                                     0               10             20               30                40                 50   60         70
                                                                                         Number of Class A Cities ( Population > 1 Lakh


Source: Census 2011
Urbanization in India

                                               180.0


                                               160.0                          SK
Percentage Decade Growth in Urban Population




                                               140.0


                                               120.0


                                               100.0                                              KE


                                                                               TR
                                                80.0
                                                                                    NA

                                                60.0

                                                                          CH     MN HR
                                                                                  UK
                                                              BH         AP JK       AN     GJ                    GA
                                                40.0                   MEUPJH            KA
                                                                 AS OR      RJ     WB
                                                                               MP       PB        TN MZ                                      DL
                                                                                               MH
                                                             HP
                                                20.0


                                                 0.0
                                                       0.0             20.0              40.0                  60.0                   80.0    100.0   120.0
                                                                                          % Share of Urban Population in Total Population


                                                 Source: Census,2011
Slums and Poverty ratio in India

                                           20.00


                                           18.00                                DL

                                                                                                                         MH
                                           16.00
% og Slum Population to Total Population




                                           14.00                                HR           TN

                                           12.00
                                                       MZ
                                                                PB
                                                                                WB                         AN
                                           10.00                                           GO                                                   MP
                                                                                                                                              CH
                                                                                                                                    UK
                                                       AP
                                                       ME                  GJ
                                            8.00
                                                                                                                         KA
                                                                                                                    UP    RJ
                                            6.00
                                                                 JK                                                                                  OR
                                                       NA
                                                       TR
                                                       AS
                                            4.00       MN                             JH
                                                       SK
                                                                                      KE                                       BH
                                            2.00       HP


                                            0.00
                                                   0        5         10        15   20             25             30          35        40           45   50
                                                                                           Poverty Ratio - Urban


                Source: World bank,2012
Households with Drinking water facilities

                                                                     80
                                                                                                                                                                   NA
                                                                                                                 BH
% of households without tapwater as major source of drinking water




                                                                     70
                                                                                          AS

                                                                                                                      KE
                                                                     60
                                                                                                                 UP
                                                                                                                                                            JH
                                                                     50


                                                                                                                                TR                                                           CH
                                                                     40                                                                                                          OR
                                                                                                                                                                                                       MN
                                                                                                                                                                        MP
                                                                                                                                                                                      WB
                                                                                                                                             MZ
                                                                     30
                                                                                                       UK                                         AN
                                                                                                            HR

                                                                                   PB                                                                             TN
                                                                     20                           GJ
                                                                                         GA    RJ
                                                                                               AP
                                                                                                  HP   DL                        MH
                                                                                        JK                                                   KA
                                                                     10
                                                                                                                 ME
                                                                              SK

                                                                      0
                                                                          0                     10                         20                     30                      40                      50        60
                                                                                                            % of households with drinking water facility outside premisis (Distance >200m)


                                                                     Source: World bank,2012
Households and Sanitation

                                              35

                                                                                                                                                       CH

                                              30                                                                                             OR
                                                                                                                                                            BH
% of households with no sanitation facility




                                                                                                               MP JH
                                              25



                                              20

                                                                                            TN
                                                                                                                   UP
                                              15
                                                                                  RJ
                                                                             JK             KA
                                                                            AN
                                                             GA
                                              10                         HP
                                                                        HR
                                                                                            GJ
                                                                                                      WB                   MH
                                                                   PB
                                               5                            UK
                                                       NA         KE                   DL
                                                              AS                                                                                                      TR
                                                                 ME
                                                            MZ SK AP                                                                                                       MN
                                               0
                                                   0                   10                        20                      30                       40             50             60
                                                                                                      % of households with no bathroom facility


                                              Source: World bank,2012
Households and Drainage facilities

                                            70                                                                                           TR




                                            60
                                                                                                                                                         KE
% of households with no drainage facility




                                            50



                                            40                                                    OR


                                                                                                                                                   GA               MZ
                                                                                                                                                                   MNNA
                                            30                                                                                                CH
                                                  BH                                                                                AS
                                                                                                                       WB
                                                                                                                            JH                          TN
                                            20                                                                                                           AP
                                                                                                                                                    AN
                                                                                                                                              MP                  HP
                                                                                                                                                      KA MH
                                                                                                                                               RJ
                                                                                                                                                    JK          GJ
                                            10                                                  UP                                                            UK PB
                                                                                                                                                             HR
                                                                                                                                                              DL ME
                                                                                                                                                                   SK
                                             0
                                                 79           82      85             88                 91                     94              97                       100
                                                                           % of households with domestic use for electricity


                                            Source: World bank,2012
Urban Housing Shortages

                                        4
                                                 MH


                                       3.5



                                        3                                                    TN
Urban Housng Shortage ( In Millions)




                                       2.5                                          UK

                                                                    WB
                                                            AN
                                        2
                                                                                              GJKA

                                       1.5                                         MP
                                                                              DL
                                                                                                                          RJ
                                        1
                                                                                                                                                            KE
                                                                                                          PB
                                                            BH
                                                            JH OR                       HR
                                       0.5             CH                                                                                         AS
                                                              UP                                               JK
                                                  AP                     NA        ME         TR MZ                                  GA HP        MN
                                                                                                                               SK
                                        0
                                             7         8            9                    10               11               12                13        14   15   16
                                                                                              Per capita Floor Area ( sq m) in urban areas


                                         Source: World bank,2012
Rents paid by households

                                          2500




                                                                                                                                    KA
                                          2000
Average Rent Paid by houeholds ( In Rs)




                                                                                                                                                           SK
                                                                                                                                      ME
                                                                                                                     DL
                                          1500                           KE                    GA

                                                                                         UK          MH                                     AN
                                                                                    RJ                    MZ
                                                               BH
                                                                              UP         OR
                                                                                                                                            TN        NA
                                                                                   HR     GJ
                                          1000                                           AS
                                                                    JK                                        HP
                                                                              MP         TR
                                                     MN                                                  AP
                                                                                                        PB
                                                                                          JH       CH
                                                                                                  WB


                                          500




                                             0
                                                 0        10                   20                        30                 40                   50        60   70
                                                                                               % of Households living in rented dwellings


                           Source: World bank,2012
Percentage and Population of Poor in India

                                                                              % age of Persons below Poverty line
                                               Number of Persons (In Lakhs)
                                                                               (Tendulkar Methodology)-2009-10

Andhra Pradesh                                            176.6                              21.1

Arunachal Pradesh                                          3.5                               25.9

Assam                                                     116.4                              37.9

Bihar                                                     543.5                              53.5

Chhattisgarh                                              121.9                              48.7

Delhi                                                      23.3                              14.2

Goa                                                        1.3                                8.7

Gujarat                                                   136.2                               23

Haryana                                                     50                               20.1

Himachal Pradesh                                           6.4                                9.5

Jammu & Kashmir                                            11.5                               9.4

Jharkhand                                                 126.2                              39.1

Karnataka                                                 142.3                              23.6

Kerala                                                     39.6                               12

Madhya Pradesh                                            261.8                              36.7

Maharashtra                                               270.8                              24.5

Manipur                                                    12.5                              47.1

Meghalaya                                                  4.9                               17.1

Mizoram                                                    2.3                               21.1

Nagaland                                                   4.1                               20.9

Orissa                                                    153.2                               37

Punjab                                                     43.5                              15.9

Rajasthan                                                  167                               24.8

Sikkim                                                     0.8                               13.1

Tamil Nadu                                                121.8                              17.1

Tripura                                                    6.3                               17.4

Uttar Pradesh                                             737.9                              37.7

Uttarakhand                                                17.9                               18

West Bengal                                               240.3                              26.7

India                                                     3546.8                             20.9
Poverty Lines for various states

                        RURAL(Monthly per capita in Rs)   URBAN (Monthly per capita in Rs)


Andhra Pradesh                       693.8                             926.4
Arunachal Pradesh                    773.7                             925.2
Assam                                691.7                              871
Bihar                                655.6                             775.3
Chhattisgarh                         617.3                             806.7
Delhi                                747.8                            1040.3
Goa                                   931                             1025.4
Gujarat                              725.9                             951.4
Haryana                              791.6                             975.4
Himachal Pradesh                      708                              888.3
Jammu & Kashmir                      722.9                             845.4
Jharkhand                            616.3                             831.2
Karnataka                            629.4                              908
Kerala                               775.3                             830.7
Madhya Pradesh                       631.9                             771.7
Maharashtra                          743.7                             961.1
Manipur                               871                               955
Meghalaya                            686.9                             989.8
Mizoram                               850                              939.3
Nagaland                            1016.8                            1147.6
Orissa                               567.1                              736
Puducherry                            641                              777.7
Punjab                                830                              960.8
Rajasthan                             755                               846
Sikkim                               728.9                            1035.2
Tamil Nadu                            639                              800.8
Tripura                              663.4                             782.7
Uttar Pradesh                        663.7                             799.9
Uttarakhand                          719.5                             898.6
West Bengal                          643.2                             830.6
Country Equivalents


              BAHA                                            CUBA
              MAS




   Source: EIU 2011, Institute for Competitiveness Analysis
Prosperity in India


                                                         Jammu and Kashmir
                                                             474

                                                                Himachal Pradesh
                                        Pakistan                  872                         China
                                                           Punjab Uttarakhand
                                                           821
                                                                      650
                                                             1056
                                                            Haryana
                                                             1652 Delhi                                                  Arunachal Pradesh
                                                                                      Nepal            669               553
                                                                     Uttar Pradesh                     Sikkim
                                                   Rajasthan             320
                                                    494                                                    Assam Nagaland
                                                                                                             396
                                                                                               Bihar   Meghalaya 378
                                                                                                        571
                                                                                               254               Manipur
                                                                                                                 394
                                           Gujarat                                     Jharkhand         Tripura
                                                                                                               Mizoram
                                           941                 Madhya Pradesh           404 West Bengal 544 529
                                                                   377                           615
                                                                            Chhattisgarh
                                                                             534
                                                                                        Odisha
                                                        Maharashtra                      487
                                                         945
                                                                                                       Bay of Bengal
                                Arabian Sea

                                                                  Andhra Pradesh
                                                    Goa              698
                                                   1788
                                                      Karnataka
                                                        713




                                                               Tamil Nadu
                                                           Kerala 801
                                                            933


                                                                         Sri Lanka
                                                     Indian Ocean

                   All the figures are in dollars, The exchange rate taken for arriving at the figures was 1 US$ = 49 Rupees




   Source: Institute for Competitiveness Analysis
Demographics of India 2011
                                                                      Age Pyramid for India in 2011

                                                               80+      4469        5163

                                                              75-79     6075        7017

                                                              70-74     8910        10034

                                                              65-69     11991       12406

                                                              60-64     16693       15712

                                                              55-59     22391       20447

                                                              50-54     28157       26038

                                                              45-49     33218       31993

                                                              40-44     36773       36691
                                                                                                                              Males
                                                              35-39     40596       40164
                                                                                                                              Female
                                                              30-34     46050       42855

                                                              25-29     54078       47877

                                                              20-24     62281       55757

                                                              15-19     63479       58248

                                                              10-14     61318       57259

                                                                5-9     60092       53394

                                                                0-4     60746       54133


80000             60000             40000             20000                     0           20000     40000   60000   80000
                                                Population of males / females in Thousands in 2011


        Source: Census of India, Institute for Competitiveness Analysis
Demographics of India 2026
                                                         Age Pyramid for India in 2026

                                                            80+    8412       11465

                                                           75-79   9937       10644

                                                           70-74 15820        15819

                                                           65-69 22185        21982

                                                           60-64 28268        28651

                                                           55-59 32968        34124

                                                           50-54 37704        38267

                                                           45-49 43702        41361

                                                           40-44 51965        46466
                                                                                                                           Male
                                                           35-39 60313        54219
                                                                                                                           Female
                                                           30-34 61859        56739

                                                           25-29 60113        55998

                                                           20-24 59176        52410

                                                           15-19 59529        52739

                                                           10-14 59500        52734

                                                             5-9 58396        51790

                                                             0-4 55328        49256


 80000          60000             40000            20000                  0           20000        40000   60000   80000
                                            Projected Population of males / females in Thousands

    Source: Census of India, Institute for Competitiveness Analysis
Overall Dependence Ratio of States

                                  Dependence Ratios 2011                            Dependence ratio 2026

                                                     West Bengal 44.58      42.35
                                                     Uttarakhand 56.39      47.88
                                                    Uttar Pradesh 66.11     55.02
                                                      Tamil Nadu 43.07      43.78
                                                        Rajasthan 60.51     46.67
                                                           Punjab 46.62     41.77
                                                           Orissa 48.47     43.43
                                       NE States Excluding Assam 44.57      42.23
                                                   Maharashtra 48.85        42.72
                                                 Madhya Pradesh 60.18       48.37
                                                          Kerala 45.23      45.96
                                                       Karnataka 45.97      43.46
                                                       Jharkhand 55.35      47.13
                                                Jammu & Kashmir 50.27       43.11
                                                Himachal Pradesh 46.91      42.87
                                                         Haryana 51.12      41.24
                                                          Gujarat 48.40     43.16
                                                            Delhi 39.96     34.81
                                                      Chattisgarh 57.45     48.40
                                                            Bihar 49.71     47.67
                                                          Assam 51.97       45.14
                                                  Andhra Pradesh 45.05      42.49

80.0              60.0              40.0              20.0                0.0             20.0          40.0   60.0   80.0

                                                  Dependence ratio 2011         Dependence ratio 2026

       Source: Census of India, Institute for Competitiveness Analysis
Factors of Poverty




                                                    Disease



                        Ignorance                                            Apathy
                                                     Poverty



                                       Disease                        Dependency




Source: 1967, 1987, 2007 Phil Bartle
Misery Index for states (Rural) 2009-10

       West Bengal                                                                     23.87
      Uttar Pradesh                                                  19.67
        Uttaranchal                                                 19.22
             Tripura                                                          21.72
        Tamil Nadu                                                                                27.07
              Sikkim                                                 19.42
          Rajasthan                                                   20.04
             Punjab                                                                 23.17
              Orissa                                                        21.11
          Nagaland                                                                                             30.62
           Mizoram                                         16.42
         Meghalaya                              12.47
           Manipur                                        15.89
       Maharashtra                                                                        25.02
    Madhya Pradesh                                                          21.08
              Kerala                                                                           26.55
         Karnataka                                                          20.81
         Jharkhand                                                             21.92
Jammu and Kashmir                                                          20.47
   Himachal Pradesh                                        16.37
            Haryana                                                                    24.17
             Gujarat                                                                23.21
                 Goa                                                   20.02
               Delhi                                                      21.22
        Chattisgarh                                            17.92
               Bihar                                          17.51
             Assam                                                            21.90
  Arunachal Pradesh                                       15.92
    Andhra Pradesh                                                           21.55

                       0.00   5.00      10.00     15.00            20.00             25.00             30.00           35.00
 Source: NSSO, and RBI
Misery Index for states (Urban) 2009-10

      West Bengal                                                                      23.17
                                                                18.57
       Uttaranchal                                                        20.92
                                                                                                 26.42
       Tamil Nadu                                                         20.97
                                                   14.92
        Rajasthan                                                         20.84
                                                                                         24.07
            Orissa                                                19.31
                                                                                                 26.32
         Mizoram                                               18.12
                                                           17.07
          Manipur                                          16.89
                                                                                         23.92
  Madhya Pradesh                                                       19.88
                                                                                         24.05
        Karnataka                                                              21.51
                                                                                     23.82
Jammu and Kashmir                                                                 22.77
                                                                18.77
          Haryana                                                                22.37
                                                                        20.31
              Goa                                                      19.82
                                                              17.92
       Chattisgarh                                                19.02
                                                                        20.91
           Assam                                                       20.70
                                                                   19.62
   Andhra Pradesh                                                  19.55

                     0.00   5.00      10.00     15.00            20.00                  25.00            30.00




 Source: NSSO, and RBI
Components of Misery Index (Rural)

       West Bengal                          7.2                              16.67
      Uttar Pradesh                  5.6                           14.07
        Uttaranchal             4.5                             14.72
             Tripura                                                 14.1             7.62
        Tamil Nadu                                                   14.1                    12.97
              Sikkim             4.7                             14.72
          Rajasthan       3.1                                  16.94
             Punjab                    6.2                                16.97
              Orissa                            8.1                       13.01
          Nagaland                                                          15.9                        14.72
           Mizoram    1.7                            14.72
         Meghalaya 0.9                      11.57
           Manipur            4.1                        11.79
       Maharashtra                        6.7                                  18.32
    Madhya Pradesh                        6.7                          14.38
              Kerala                                                             17.3              9.25
         Karnataka              4                                 16.81
         Jharkhand                          7.2                           14.72
Jammu and Kashmir                4.8                               15.67
   Himachal Pradesh            4.3                        12.07
            Haryana                    6.1                                  18.07
             Gujarat                     6                                17.21
                 Goa               5.3                             14.72
               Delhi                     6.5                           14.72
        Chattisgarh       3.2                              14.72
               Bihar                5.4                       12.11
             Assam                       6.6                             15.30
  Arunachal Pradesh 1.2                             14.72
    Andhra Pradesh                           7.5                          14.05

                     0                 5                 10                15                20                     25   30   35
 Source: NSSO, and RBI
                                           Unemployment rate Per 100 people (Rural Areas)         Inflation (CPI)
Components of Misery Index (Urban)

       West Bengal                                  6.5                                       16.67
      Uttar Pradesh                  4.5                                       14.07
        Uttaranchal                             6.2                                     14.72
             Tripura                                                                                            18.8                7.62
        Tamil Nadu                                                8                          12.97
              Sikkim
                   0.2                                          14.72
          Rajasthan                3.9                                            16.94
             Punjab                                       7.1                                     16.97
              Orissa                                6.3                              13.01
          Nagaland                                                         11.6                                    14.72
           Mizoram            3.4                                          14.72
         Meghalaya                          5.5                              11.57
           Manipur                        5.1                               11.79
       Maharashtra                          5.6                                               18.32
    Madhya Pradesh                          5.5                                      14.38
              Kerala                                                                       14.8                        9.25
         Karnataka                       4.7                                           16.81
         Jharkhand                                                  9.1                                 14.72
Jammu and Kashmir                                      7.1                                      15.67
   Himachal Pradesh                                  6.7                          12.07
            Haryana                 4.3                                             18.07
             Gujarat         3.1                                              17.21
                 Goa                      5.1                                    14.72
               Delhi         3.2                                          14.72
        Chattisgarh                 4.3                                       14.72
               Bihar                                               8.8                        12.11
             Assam                         5.4                                      15.30
  Arunachal Pradesh                      4.9                                     14.72
    Andhra Pradesh                          5.5                                   14.05

                         0                      5                         10                      15                       20              25   30
 Source: NSSO, and RBI
                                           Unemployment rate Per 100 people (Urban Areas)                         Inflation (CPI)
Misery Index for Rural Areas : Composition

                          2005-06    2007-08   2009-10   2005-06      2007-08     2009-10   2005-06     2007-08    2009-10
                             Urban Unemployment rates              Inflation rate                     Misery Index
      Andhra Pradesh        8.4        6.5        5.5     3.92          7.23       14.05     12.32       13.73      19.55
      Arunachal Pradesh     9.4        4.8        4.9     4.07          7.47       14.72     13.47       12.27      19.62
      Assam                 9.6        10.8       5.4     4.02          7.47       15.30     13.62       18.27      20.70
      Bihar                 11.8       7.8        8.8     6.44          7.03       12.11     18.24       14.83      20.91
      Chattisgarh           9.1        8.1        4.3     4.07          7.47       14.72     13.17       15.57      19.02
      Delhi                 3.7        2.6        3.2     4.07          7.47       14.72     7.77        10.07      17.92
      Goa                   12.4       7.7        5.1     4.07          7.47       14.72     16.47       15.17      19.82
      Gujarat               5.4        3.8        3.1     5.13          5.21       17.21     10.53        9.01      20.31
      Haryana               5.4        3.5        4.3     4.16         10.92       18.07     9.56        14.42      22.37
      Himachal Pradesh      5.8        6.4        6.7     3.63          2.45       12.07     9.43         8.85      18.77
      Jammu and Kashmir     7.7        7.1        7.1     4.06          5.36       15.67     11.76       12.46      22.77
      Jharkhand             13.1       9.6        9.1     4.07          7.47       14.72     17.17       17.07      23.82
      Karnataka             8.7        5.2        4.7     0.29         10.63       16.81     8.99        15.83      21.51
      Kerala                20.1       18.2       14.8    1.14          7.75        9.25     21.24       25.95      24.05
      Madhya Pradesh        6.2        6.6        5.5     5.07          6.19       14.38     11.27       12.79      19.88
      Maharashtra           8.5        6.7        5.6     5.14          7.46       18.32     13.64       14.16      23.92
      Manipur               9.4        5.7        5.1     5.47          8.90       11.79     14.87       14.60      16.89
      Meghalaya             9.4        5.6        5.5     6.70          7.07       11.57     16.10       12.67      17.07
      Mizoram               9.4        4.8        3.4     4.07          7.47       14.72     13.47       12.27      18.12
      Nagaland              9.4        17.4       11.6    4.07          7.47       14.72     13.47       24.87      26.32
      Orissa                9.7        8.9        6.3     4.38          9.59       13.01     14.08       18.49      19.31
      Punjab                6.9        4.7        7.1     6.15          7.43       16.97     13.05       12.13      24.07
      Rajasthan               5        5.3        3.9     9.28          6.30       16.94     14.28       11.60      20.84
      Sikkim                9.4        7.4        0.2     4.07          7.47       14.72     13.47       14.87      14.92
      Tamil Nadu            8.5        11.2        8      2.01          8.63       12.97     10.51       19.83      20.97
      Tripura               9.4        26.6       18.8    6.36          6.27        7.62     15.76       32.87      26.42
      Uttaranchal           3.8        9.3        6.2     4.07          7.47       14.72     7.87        16.77      20.92
      Uttar Pradesh         6.6        7.3        4.5     7.23          6.13       14.07     13.83       13.43      18.57
      West Bengal           10.7       9.6        6.5     1.79          8.22       16.67     12.49       17.82      23.17
      India                 8.3        7.4        5.8     4.07          7.47       14.72     12.37       14.87      20.52


Source: World bank,2012
Misery Index for Urban Areas : Composition

                    2005-06     2007-08   2009-10   2005-06     2007-08        2009-10   2005-06     2007-08      2009-10
                       Rural Unemployment rates               Inflation rate                       Misery Index
Andhra Pradesh         9          8.6        7.5     3.92          7.23        14.05      12.92       15.83       21.55
Arunachal Pradesh     5.3         2.8        1.2     4.07          7.47        14.72      9.37        10.27       15.92
Assam                 5.4          7         6.6     4.02          7.47        15.30      9.42        14.47       21.90
Bihar                 4.9         9.2        5.4     6.44          7.03        12.11      11.34       16.23       17.51
Chattisgarh           8.7         6.7        3.2     4.07          7.47        14.72      12.77       14.17       17.92
Delhi                 2.2         3.8        6.5     4.07          7.47        14.72      6.27        11.27       21.22
Goa                   16.1        4.9        5.3     4.07          7.47        14.72      20.17       12.37       20.02
Gujarat               4.1         3.5         6      5.13          5.21        17.21      9.23         8.71       23.21
Haryana                8          6.9        6.1     4.16         10.92        18.07      12.16       17.82       24.17
Himachal Pradesh      4.9         6.8        4.3     3.63          2.45        12.07      8.53         9.25       16.37
Jammu and Kashmir     6.7         5.9        4.8     4.06          5.36        15.67      10.76       11.26       20.47
Jharkhand             11.6        9.2        7.2     4.07          7.47        14.72      15.67       16.67       21.92
Karnataka             7.1          6          4      0.29         10.63        16.81      7.39        16.63       20.81
Kerala                22.7        19.3      17.3     1.14          7.75        9.25       23.84       27.05       26.55
Madhya Pradesh        5.1         6.7        6.7     5.07          6.19        14.38      10.17       12.89       21.08
Maharashtra           7.9         8.8        6.7     5.14          7.46        18.32      13.04       16.26       25.02
Manipur               5.3         4.2        4.1     5.47          8.90        11.79      10.77       13.10       15.89
Meghalaya             5.3         1.5        0.9     6.70          7.07        11.57      12.00        8.57       12.47
Mizoram               5.3         0.6        1.7     4.07          7.47        14.72      9.37         8.07       16.42
Nagaland              5.3         7.1       15.9     4.07          7.47        14.72      9.37        14.57       30.62
Orissa                9.9         8.3        8.1     4.38          9.59        13.01      14.28       17.89       21.11
Punjab                10.6        8.2        6.2     6.15          7.43        16.97      16.75       15.63       23.17
Rajasthan             4.2         5.1        3.1     9.28          6.30        16.94      13.48       11.40       20.04
Sikkim                5.3         4.2        4.7     4.07          7.47        14.72      9.37        11.67       19.42
Tamil Nadu            14.9        17.3      14.1     2.01          8.63        12.97      16.91       25.93       27.07
Tripura               5.3         18.3      14.1     6.36          6.27        7.62       11.66       24.57       21.72
Uttaranchal           3.3         8.9        4.5     4.07          7.47        14.72      7.37        16.37       19.22
Uttar Pradesh         5.2         5.3        5.6     7.23          6.13        14.07      12.43       11.43       19.67
West Bengal           11.7        12.2       7.2     1.79          8.22        16.67      13.49       20.42       23.87
India                 8.1         8.4        6.8     4.07          7.47        14.72      12.17       15.87       21.52
Change in Rural Misery Index

                                                              40.000

                                                                                                                                             Rajasthan
                                                                                                                                                                                                 Jharkhand
                                                              35.000
CAGR Growth rate in Misery Index (Rural) 2005-06 to 2009-10




                                                                                                                                         Meghalaya
                                                              30.000
                                                                                                                             Karnataka
                                                                                                                                                         Uttarakhand

                                                              25.000                                                                              Punjab


                                                                                                                            Madhya Pradesh
                                                                                                                                         Mizoram
                                                              20.000                                                                                       Bihar
                                                                                                         Orissa                      West Bengal                       Manipur
                                                                                                                                        Andhra Pradesh
                                                                                                     Sikkim                                       Tamil Nadu
                                                                                                                                  Jammu & Kashmir
                                                              15.000                           Himachal Pradesh
                                                                                                                                   Kerala                                        Chhattisgarh
                                                                                                                  Haryana
                                                                                                     Nagaland                         Goa Gujarat
                                                                                                                  Uttar Pradesh                Assam
                                                              10.000                                                                                Maharashtra




                                                               5.000
                                                                                                                                                                                 Tripura
                                                                           Arunachal Pradesh
                                                                                                                                     Delhi
                                                               0.000
                                                                   10.00                         15.00                              20.00                              25.00                    30.00        35.00

                                                              -5.000
                                                                                                                                       Misery Index Rural 2009-10
                        Source: NSSO, and RBI
Change in Urban Misery Index

                                                              30.00
                                                                                                                                             Karnataka
CAGR Growth rate in Misery Index (Urban) 2005-06 to 2009-10




                                                                                                                                                      Meghalaya
                                                              25.00                                                                                               Bihar
                                                                                                  Rajasthan




                                                              20.00                                                   Orissa                Chhattisgarh
                                                                                                                                                                   West Bengal                            Jharkhand
                                                                                                                                     Uttarakhand

                                                                                                                                                                  Tamil Nadu               Maharashtra
                                                                                                                                  Mizoram

                                                              15.00                                                                                                                    Manipur
                                                                                                                                                                                                           Andhra Pradesh
                                                                                                                          Jammu & Kashmir
                                                                                                                                             Punjab

                                                                                                                Himachal Pradesh                Goa
                                                              10.00                                  Uttar Pradesh
                                                                                                                                                                                  Assam
                                                                                                                 Kerala        Gujarat
                                                                                                     Sikkim


                                                                                                                                   Delhi
                                                               5.00                                                                           Haryana
                                                                                                                                                                                 Tripura
                                                                                               Nagaland
                                                                      Madhya Pradesh
                                                                                           Arunachal Pradesh


                                                               0.00
                                                                  14.00                16.00                  18.00                  20.00                  22.00                   24.00                26.00              28.00
                                                                                                                                  Misery Index Urban 2009-10

                        Source: NSSO, and RBI
The End

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Inequality and Poverty in India

  • 1. Dr. Amit Kapoor Honorary Chairman, Institute for Competitiveness, India & Professor of Strategy, MDI, Gurgaon, India
  • 2. Poverty Concept and Definitions Narrow vs Broader Definitions: Nolan and Whelan define poverty in terms of the inability to participate in society (which is broader than more ‘absolute’ definitions confined to subsistence needs), but emphasize that what is distinctive is the ‘inability to participate owing to lack of resources’ (1996: 188). By implication they exclude non-material elements found in broad UN definitions, for example: ‘lack of participation in decision-making’, ‘a violation of human dignity’, ‘powerlessness’ and ‘susceptibility to violence’ (cited in Langmore, 2000: 37). Similarly, they exclude some of the non-material aspects emphasized by people in poverty themselves, such as lack of voice, respect and self-esteem, isolation and humiliation (UKCAP, 1997; Galloway, 2002). Source: World bank,2012
  • 3. Poverty Concept and Definitions Income or Living Standards: Another source of variation in definitions of poverty, reflected in the literature on measurement, lies in whether they are rooted in conceptualizations that are concerned with, on the one hand, a person’s material resources, especially income, and, on the other, with actual outcomes in terms of living standards and activities (Nolan and Whelan, 1996). Put simply, someone is ‘“poor” when they have both a low standard of living and a low income’ (Gordon et al., 2000b: 91). A. B. Atkinson makes a related, but more fundamental, distinction between a concern with standard of living and a concern with a citizen’s ‘right to a minimum level of resources’ (1989: 12, emphasis added). Source: World bank,2012
  • 4. Poverty Concept and Definitions Income Or Capabilities: Amartya Sen offers an alternative perspective on the role of low income in the definition of poverty. It has been hugely influential within the international development context, contributing to a paradigm shift in the meaning of development away from economic growth and GDP to a focus on ‘poverty as a denial of choices and opportunities for living a tolerable life’ (UNDP, 1997: 2; Vizard, 2001). The human poverty and development indices published in the annual UNDP Human Development Report reflect Sen’s approach. Sen takes a step backwards from both income and living standards to ask why they matter. His answer is that they don’t matter in their own right, for they are simply instrumental to what really matters, namely the kind of life that a person is able to lead and the choices and opportunities open to her in leading that life. At the heart of his approach is an understanding of living as involving ‘being and doing’. Source: World bank,2012
  • 5. Poverty Concept and Definitions Absolute and Relative Poverty: This distinction has been central to post-war debates about how to define poverty. Definitions deployed in the late nine- tenth and early twentieth century by Charles Booth and Seebohm Rowntree, the pioneers of modern poverty research, were supposedly ‘absolute’ in the sense that poverty was said to be understood as lacking sufficient money to meet basic physical needs. At its most basic, absolute poverty is defined in terms of survival; more commonly it refers to subsistence, linked to a basic standard of physical capacity necessary for production (paid work) and reproduction (the bearing and nurturing of children). The notion of ‘relative’, which links the concepts of relative poverty and deprivation, needs unpacking, as it embraces a number of different meanings. Broadly these fall into two, interrelated, categories concerning, first, the nature of the comparisons to be made in judging whether poverty exists and, second, the nature of human needs. Source: World bank,2012
  • 6. 500 1000 1500 2000 2500 0 693.8 926.4 773.7 925.2 691.7 871 655.6 775.3 617.3 806.7 747.8 1040.3 931 1025.4 Source: Planning Commission, 2012 725.9 951.4 791.6 975.4 708 888.3 722.9 845.4 616.3 831.2 629.4 908 RURAL(Monthly per capita in Rs) 775.3 830.7 631.9 771.7 743.7 961.1 871 955 686.9 989.8 850 939.3 1016.8 1147.6 567.1 736 Poverty Line Urban and Rural in India URBAN (Monthly per capita in Rs) 641 777.7 830 960.8 755 846 728.9 1035.2 639 800.8 663.4 782.7 663.7 799.9 719.5 898.6 643.2 830.6
  • 7. Poverty according to Tendulkar Methodology West Bengal 34.2 26.7 Uttarakhand 32.7 18 Uttar Pradesh 40.9 37.7 Tripura 40 17.4 Tamil Nadu 29.4 17.1 Sikkim 30.9 13.1 Rajasthan 34.4 24.8 Punjab 20.9 15.9 Orissa 57.2 37 Nagaland 8.8 20.9 Mizoram 15.4 21.1 Meghalaya 16.1 17.1 Manipur 37.9 47.1 Maharashtra 38.2 24.5 Madhya Pradesh 48.6 36.7 Kerala 19.6 12 Karnataka 33.3 23.6 Jharkhand 45.3 39.1 Jammu & Kashmir 13.1 9.4 Himachal Pradesh 22.9 9.5 Haryana 24.1 20.1 Gujarat 31.6 23 Goa 24.9 8.7 Delhi 13 14.2 Chhattisgarh 49.4 48.7 Bihar 54.4 53.5 Assam 34.4 37.9 Arunachal Pradesh 31.4 25.9 Andhra Pradesh 29.6 21.1 0 20 40 60 80 100 120 % age of Persons below Poverty line (Tendulkar Methodology)-2004-05 % age of Persons below Poverty line (Tendulkar Methodology)-2009-10 Source: Planning Commission
  • 8. Poverty headcount ratio at $2 a day (PPP) (% of population) 2011 or last year available Nigeria 84.49 South Africa 31.33 Russian Federation 0.05 Rwanda 82.37 India 68.72 China 29.79 Brazil 10.82 0 10 20 30 40 50 60 70 80 90 Source: World bank,2012
  • 9. Poverty headcount ratio at $1.25 a day (PPP) (% of population) 2011 or last year available Nigeria 67.98 South Africa 13.77 Rwanda 63.17 Russian Federation 0 India 32.67 China 13.06 Brazil 6.14 0 10 20 30 40 50 60 70 80 Source: World bank,2012
  • 10. Gini Index 2011 or last year available 70 60 50 40 63.14 30 54.69 50.82 48.83 42.48 20 40.11 33.38 10 0 Brazil China India Russian Federation Rwanda South Africa Nigeria Source: World bank,2012
  • 11. Cities in India 8 KE UP 7 MH Number of Megacities (Population > 1 Million) 6 5 GJ MP TN 4 JH RJ AP 3 CH PB WB 2 JK DL HR BH KA 1 HP AS UK NE OR 0 0 10 20 30 40 50 60 70 Number of Class A Cities ( Population > 1 Lakh Source: Census 2011
  • 12. Urbanization in India 180.0 160.0 SK Percentage Decade Growth in Urban Population 140.0 120.0 100.0 KE TR 80.0 NA 60.0 CH MN HR UK BH AP JK AN GJ GA 40.0 MEUPJH KA AS OR RJ WB MP PB TN MZ DL MH HP 20.0 0.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 % Share of Urban Population in Total Population Source: Census,2011
  • 13. Slums and Poverty ratio in India 20.00 18.00 DL MH 16.00 % og Slum Population to Total Population 14.00 HR TN 12.00 MZ PB WB AN 10.00 GO MP CH UK AP ME GJ 8.00 KA UP RJ 6.00 JK OR NA TR AS 4.00 MN JH SK KE BH 2.00 HP 0.00 0 5 10 15 20 25 30 35 40 45 50 Poverty Ratio - Urban Source: World bank,2012
  • 14. Households with Drinking water facilities 80 NA BH % of households without tapwater as major source of drinking water 70 AS KE 60 UP JH 50 TR CH 40 OR MN MP WB MZ 30 UK AN HR PB TN 20 GJ GA RJ AP HP DL MH JK KA 10 ME SK 0 0 10 20 30 40 50 60 % of households with drinking water facility outside premisis (Distance >200m) Source: World bank,2012
  • 15. Households and Sanitation 35 CH 30 OR BH % of households with no sanitation facility MP JH 25 20 TN UP 15 RJ JK KA AN GA 10 HP HR GJ WB MH PB 5 UK NA KE DL AS TR ME MZ SK AP MN 0 0 10 20 30 40 50 60 % of households with no bathroom facility Source: World bank,2012
  • 16. Households and Drainage facilities 70 TR 60 KE % of households with no drainage facility 50 40 OR GA MZ MNNA 30 CH BH AS WB JH TN 20 AP AN MP HP KA MH RJ JK GJ 10 UP UK PB HR DL ME SK 0 79 82 85 88 91 94 97 100 % of households with domestic use for electricity Source: World bank,2012
  • 17. Urban Housing Shortages 4 MH 3.5 3 TN Urban Housng Shortage ( In Millions) 2.5 UK WB AN 2 GJKA 1.5 MP DL RJ 1 KE PB BH JH OR HR 0.5 CH AS UP JK AP NA ME TR MZ GA HP MN SK 0 7 8 9 10 11 12 13 14 15 16 Per capita Floor Area ( sq m) in urban areas Source: World bank,2012
  • 18. Rents paid by households 2500 KA 2000 Average Rent Paid by houeholds ( In Rs) SK ME DL 1500 KE GA UK MH AN RJ MZ BH UP OR TN NA HR GJ 1000 AS JK HP MP TR MN AP PB JH CH WB 500 0 0 10 20 30 40 50 60 70 % of Households living in rented dwellings Source: World bank,2012
  • 19. Percentage and Population of Poor in India % age of Persons below Poverty line Number of Persons (In Lakhs) (Tendulkar Methodology)-2009-10 Andhra Pradesh 176.6 21.1 Arunachal Pradesh 3.5 25.9 Assam 116.4 37.9 Bihar 543.5 53.5 Chhattisgarh 121.9 48.7 Delhi 23.3 14.2 Goa 1.3 8.7 Gujarat 136.2 23 Haryana 50 20.1 Himachal Pradesh 6.4 9.5 Jammu & Kashmir 11.5 9.4 Jharkhand 126.2 39.1 Karnataka 142.3 23.6 Kerala 39.6 12 Madhya Pradesh 261.8 36.7 Maharashtra 270.8 24.5 Manipur 12.5 47.1 Meghalaya 4.9 17.1 Mizoram 2.3 21.1 Nagaland 4.1 20.9 Orissa 153.2 37 Punjab 43.5 15.9 Rajasthan 167 24.8 Sikkim 0.8 13.1 Tamil Nadu 121.8 17.1 Tripura 6.3 17.4 Uttar Pradesh 737.9 37.7 Uttarakhand 17.9 18 West Bengal 240.3 26.7 India 3546.8 20.9
  • 20. Poverty Lines for various states RURAL(Monthly per capita in Rs) URBAN (Monthly per capita in Rs) Andhra Pradesh 693.8 926.4 Arunachal Pradesh 773.7 925.2 Assam 691.7 871 Bihar 655.6 775.3 Chhattisgarh 617.3 806.7 Delhi 747.8 1040.3 Goa 931 1025.4 Gujarat 725.9 951.4 Haryana 791.6 975.4 Himachal Pradesh 708 888.3 Jammu & Kashmir 722.9 845.4 Jharkhand 616.3 831.2 Karnataka 629.4 908 Kerala 775.3 830.7 Madhya Pradesh 631.9 771.7 Maharashtra 743.7 961.1 Manipur 871 955 Meghalaya 686.9 989.8 Mizoram 850 939.3 Nagaland 1016.8 1147.6 Orissa 567.1 736 Puducherry 641 777.7 Punjab 830 960.8 Rajasthan 755 846 Sikkim 728.9 1035.2 Tamil Nadu 639 800.8 Tripura 663.4 782.7 Uttar Pradesh 663.7 799.9 Uttarakhand 719.5 898.6 West Bengal 643.2 830.6
  • 21. Country Equivalents BAHA CUBA MAS Source: EIU 2011, Institute for Competitiveness Analysis
  • 22. Prosperity in India Jammu and Kashmir 474 Himachal Pradesh Pakistan 872 China Punjab Uttarakhand 821 650 1056 Haryana 1652 Delhi Arunachal Pradesh Nepal 669 553 Uttar Pradesh Sikkim Rajasthan 320 494 Assam Nagaland 396 Bihar Meghalaya 378 571 254 Manipur 394 Gujarat Jharkhand Tripura Mizoram 941 Madhya Pradesh 404 West Bengal 544 529 377 615 Chhattisgarh 534 Odisha Maharashtra 487 945 Bay of Bengal Arabian Sea Andhra Pradesh Goa 698 1788 Karnataka 713 Tamil Nadu Kerala 801 933 Sri Lanka Indian Ocean All the figures are in dollars, The exchange rate taken for arriving at the figures was 1 US$ = 49 Rupees Source: Institute for Competitiveness Analysis
  • 23. Demographics of India 2011 Age Pyramid for India in 2011 80+ 4469 5163 75-79 6075 7017 70-74 8910 10034 65-69 11991 12406 60-64 16693 15712 55-59 22391 20447 50-54 28157 26038 45-49 33218 31993 40-44 36773 36691 Males 35-39 40596 40164 Female 30-34 46050 42855 25-29 54078 47877 20-24 62281 55757 15-19 63479 58248 10-14 61318 57259 5-9 60092 53394 0-4 60746 54133 80000 60000 40000 20000 0 20000 40000 60000 80000 Population of males / females in Thousands in 2011 Source: Census of India, Institute for Competitiveness Analysis
  • 24. Demographics of India 2026 Age Pyramid for India in 2026 80+ 8412 11465 75-79 9937 10644 70-74 15820 15819 65-69 22185 21982 60-64 28268 28651 55-59 32968 34124 50-54 37704 38267 45-49 43702 41361 40-44 51965 46466 Male 35-39 60313 54219 Female 30-34 61859 56739 25-29 60113 55998 20-24 59176 52410 15-19 59529 52739 10-14 59500 52734 5-9 58396 51790 0-4 55328 49256 80000 60000 40000 20000 0 20000 40000 60000 80000 Projected Population of males / females in Thousands Source: Census of India, Institute for Competitiveness Analysis
  • 25. Overall Dependence Ratio of States Dependence Ratios 2011 Dependence ratio 2026 West Bengal 44.58 42.35 Uttarakhand 56.39 47.88 Uttar Pradesh 66.11 55.02 Tamil Nadu 43.07 43.78 Rajasthan 60.51 46.67 Punjab 46.62 41.77 Orissa 48.47 43.43 NE States Excluding Assam 44.57 42.23 Maharashtra 48.85 42.72 Madhya Pradesh 60.18 48.37 Kerala 45.23 45.96 Karnataka 45.97 43.46 Jharkhand 55.35 47.13 Jammu & Kashmir 50.27 43.11 Himachal Pradesh 46.91 42.87 Haryana 51.12 41.24 Gujarat 48.40 43.16 Delhi 39.96 34.81 Chattisgarh 57.45 48.40 Bihar 49.71 47.67 Assam 51.97 45.14 Andhra Pradesh 45.05 42.49 80.0 60.0 40.0 20.0 0.0 20.0 40.0 60.0 80.0 Dependence ratio 2011 Dependence ratio 2026 Source: Census of India, Institute for Competitiveness Analysis
  • 26. Factors of Poverty Disease Ignorance Apathy Poverty Disease Dependency Source: 1967, 1987, 2007 Phil Bartle
  • 27.
  • 28. Misery Index for states (Rural) 2009-10 West Bengal 23.87 Uttar Pradesh 19.67 Uttaranchal 19.22 Tripura 21.72 Tamil Nadu 27.07 Sikkim 19.42 Rajasthan 20.04 Punjab 23.17 Orissa 21.11 Nagaland 30.62 Mizoram 16.42 Meghalaya 12.47 Manipur 15.89 Maharashtra 25.02 Madhya Pradesh 21.08 Kerala 26.55 Karnataka 20.81 Jharkhand 21.92 Jammu and Kashmir 20.47 Himachal Pradesh 16.37 Haryana 24.17 Gujarat 23.21 Goa 20.02 Delhi 21.22 Chattisgarh 17.92 Bihar 17.51 Assam 21.90 Arunachal Pradesh 15.92 Andhra Pradesh 21.55 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Source: NSSO, and RBI
  • 29. Misery Index for states (Urban) 2009-10 West Bengal 23.17 18.57 Uttaranchal 20.92 26.42 Tamil Nadu 20.97 14.92 Rajasthan 20.84 24.07 Orissa 19.31 26.32 Mizoram 18.12 17.07 Manipur 16.89 23.92 Madhya Pradesh 19.88 24.05 Karnataka 21.51 23.82 Jammu and Kashmir 22.77 18.77 Haryana 22.37 20.31 Goa 19.82 17.92 Chattisgarh 19.02 20.91 Assam 20.70 19.62 Andhra Pradesh 19.55 0.00 5.00 10.00 15.00 20.00 25.00 30.00 Source: NSSO, and RBI
  • 30. Components of Misery Index (Rural) West Bengal 7.2 16.67 Uttar Pradesh 5.6 14.07 Uttaranchal 4.5 14.72 Tripura 14.1 7.62 Tamil Nadu 14.1 12.97 Sikkim 4.7 14.72 Rajasthan 3.1 16.94 Punjab 6.2 16.97 Orissa 8.1 13.01 Nagaland 15.9 14.72 Mizoram 1.7 14.72 Meghalaya 0.9 11.57 Manipur 4.1 11.79 Maharashtra 6.7 18.32 Madhya Pradesh 6.7 14.38 Kerala 17.3 9.25 Karnataka 4 16.81 Jharkhand 7.2 14.72 Jammu and Kashmir 4.8 15.67 Himachal Pradesh 4.3 12.07 Haryana 6.1 18.07 Gujarat 6 17.21 Goa 5.3 14.72 Delhi 6.5 14.72 Chattisgarh 3.2 14.72 Bihar 5.4 12.11 Assam 6.6 15.30 Arunachal Pradesh 1.2 14.72 Andhra Pradesh 7.5 14.05 0 5 10 15 20 25 30 35 Source: NSSO, and RBI Unemployment rate Per 100 people (Rural Areas) Inflation (CPI)
  • 31. Components of Misery Index (Urban) West Bengal 6.5 16.67 Uttar Pradesh 4.5 14.07 Uttaranchal 6.2 14.72 Tripura 18.8 7.62 Tamil Nadu 8 12.97 Sikkim 0.2 14.72 Rajasthan 3.9 16.94 Punjab 7.1 16.97 Orissa 6.3 13.01 Nagaland 11.6 14.72 Mizoram 3.4 14.72 Meghalaya 5.5 11.57 Manipur 5.1 11.79 Maharashtra 5.6 18.32 Madhya Pradesh 5.5 14.38 Kerala 14.8 9.25 Karnataka 4.7 16.81 Jharkhand 9.1 14.72 Jammu and Kashmir 7.1 15.67 Himachal Pradesh 6.7 12.07 Haryana 4.3 18.07 Gujarat 3.1 17.21 Goa 5.1 14.72 Delhi 3.2 14.72 Chattisgarh 4.3 14.72 Bihar 8.8 12.11 Assam 5.4 15.30 Arunachal Pradesh 4.9 14.72 Andhra Pradesh 5.5 14.05 0 5 10 15 20 25 30 Source: NSSO, and RBI Unemployment rate Per 100 people (Urban Areas) Inflation (CPI)
  • 32. Misery Index for Rural Areas : Composition 2005-06 2007-08 2009-10 2005-06 2007-08 2009-10 2005-06 2007-08 2009-10 Urban Unemployment rates Inflation rate Misery Index Andhra Pradesh 8.4 6.5 5.5 3.92 7.23 14.05 12.32 13.73 19.55 Arunachal Pradesh 9.4 4.8 4.9 4.07 7.47 14.72 13.47 12.27 19.62 Assam 9.6 10.8 5.4 4.02 7.47 15.30 13.62 18.27 20.70 Bihar 11.8 7.8 8.8 6.44 7.03 12.11 18.24 14.83 20.91 Chattisgarh 9.1 8.1 4.3 4.07 7.47 14.72 13.17 15.57 19.02 Delhi 3.7 2.6 3.2 4.07 7.47 14.72 7.77 10.07 17.92 Goa 12.4 7.7 5.1 4.07 7.47 14.72 16.47 15.17 19.82 Gujarat 5.4 3.8 3.1 5.13 5.21 17.21 10.53 9.01 20.31 Haryana 5.4 3.5 4.3 4.16 10.92 18.07 9.56 14.42 22.37 Himachal Pradesh 5.8 6.4 6.7 3.63 2.45 12.07 9.43 8.85 18.77 Jammu and Kashmir 7.7 7.1 7.1 4.06 5.36 15.67 11.76 12.46 22.77 Jharkhand 13.1 9.6 9.1 4.07 7.47 14.72 17.17 17.07 23.82 Karnataka 8.7 5.2 4.7 0.29 10.63 16.81 8.99 15.83 21.51 Kerala 20.1 18.2 14.8 1.14 7.75 9.25 21.24 25.95 24.05 Madhya Pradesh 6.2 6.6 5.5 5.07 6.19 14.38 11.27 12.79 19.88 Maharashtra 8.5 6.7 5.6 5.14 7.46 18.32 13.64 14.16 23.92 Manipur 9.4 5.7 5.1 5.47 8.90 11.79 14.87 14.60 16.89 Meghalaya 9.4 5.6 5.5 6.70 7.07 11.57 16.10 12.67 17.07 Mizoram 9.4 4.8 3.4 4.07 7.47 14.72 13.47 12.27 18.12 Nagaland 9.4 17.4 11.6 4.07 7.47 14.72 13.47 24.87 26.32 Orissa 9.7 8.9 6.3 4.38 9.59 13.01 14.08 18.49 19.31 Punjab 6.9 4.7 7.1 6.15 7.43 16.97 13.05 12.13 24.07 Rajasthan 5 5.3 3.9 9.28 6.30 16.94 14.28 11.60 20.84 Sikkim 9.4 7.4 0.2 4.07 7.47 14.72 13.47 14.87 14.92 Tamil Nadu 8.5 11.2 8 2.01 8.63 12.97 10.51 19.83 20.97 Tripura 9.4 26.6 18.8 6.36 6.27 7.62 15.76 32.87 26.42 Uttaranchal 3.8 9.3 6.2 4.07 7.47 14.72 7.87 16.77 20.92 Uttar Pradesh 6.6 7.3 4.5 7.23 6.13 14.07 13.83 13.43 18.57 West Bengal 10.7 9.6 6.5 1.79 8.22 16.67 12.49 17.82 23.17 India 8.3 7.4 5.8 4.07 7.47 14.72 12.37 14.87 20.52 Source: World bank,2012
  • 33. Misery Index for Urban Areas : Composition 2005-06 2007-08 2009-10 2005-06 2007-08 2009-10 2005-06 2007-08 2009-10 Rural Unemployment rates Inflation rate Misery Index Andhra Pradesh 9 8.6 7.5 3.92 7.23 14.05 12.92 15.83 21.55 Arunachal Pradesh 5.3 2.8 1.2 4.07 7.47 14.72 9.37 10.27 15.92 Assam 5.4 7 6.6 4.02 7.47 15.30 9.42 14.47 21.90 Bihar 4.9 9.2 5.4 6.44 7.03 12.11 11.34 16.23 17.51 Chattisgarh 8.7 6.7 3.2 4.07 7.47 14.72 12.77 14.17 17.92 Delhi 2.2 3.8 6.5 4.07 7.47 14.72 6.27 11.27 21.22 Goa 16.1 4.9 5.3 4.07 7.47 14.72 20.17 12.37 20.02 Gujarat 4.1 3.5 6 5.13 5.21 17.21 9.23 8.71 23.21 Haryana 8 6.9 6.1 4.16 10.92 18.07 12.16 17.82 24.17 Himachal Pradesh 4.9 6.8 4.3 3.63 2.45 12.07 8.53 9.25 16.37 Jammu and Kashmir 6.7 5.9 4.8 4.06 5.36 15.67 10.76 11.26 20.47 Jharkhand 11.6 9.2 7.2 4.07 7.47 14.72 15.67 16.67 21.92 Karnataka 7.1 6 4 0.29 10.63 16.81 7.39 16.63 20.81 Kerala 22.7 19.3 17.3 1.14 7.75 9.25 23.84 27.05 26.55 Madhya Pradesh 5.1 6.7 6.7 5.07 6.19 14.38 10.17 12.89 21.08 Maharashtra 7.9 8.8 6.7 5.14 7.46 18.32 13.04 16.26 25.02 Manipur 5.3 4.2 4.1 5.47 8.90 11.79 10.77 13.10 15.89 Meghalaya 5.3 1.5 0.9 6.70 7.07 11.57 12.00 8.57 12.47 Mizoram 5.3 0.6 1.7 4.07 7.47 14.72 9.37 8.07 16.42 Nagaland 5.3 7.1 15.9 4.07 7.47 14.72 9.37 14.57 30.62 Orissa 9.9 8.3 8.1 4.38 9.59 13.01 14.28 17.89 21.11 Punjab 10.6 8.2 6.2 6.15 7.43 16.97 16.75 15.63 23.17 Rajasthan 4.2 5.1 3.1 9.28 6.30 16.94 13.48 11.40 20.04 Sikkim 5.3 4.2 4.7 4.07 7.47 14.72 9.37 11.67 19.42 Tamil Nadu 14.9 17.3 14.1 2.01 8.63 12.97 16.91 25.93 27.07 Tripura 5.3 18.3 14.1 6.36 6.27 7.62 11.66 24.57 21.72 Uttaranchal 3.3 8.9 4.5 4.07 7.47 14.72 7.37 16.37 19.22 Uttar Pradesh 5.2 5.3 5.6 7.23 6.13 14.07 12.43 11.43 19.67 West Bengal 11.7 12.2 7.2 1.79 8.22 16.67 13.49 20.42 23.87 India 8.1 8.4 6.8 4.07 7.47 14.72 12.17 15.87 21.52
  • 34. Change in Rural Misery Index 40.000 Rajasthan Jharkhand 35.000 CAGR Growth rate in Misery Index (Rural) 2005-06 to 2009-10 Meghalaya 30.000 Karnataka Uttarakhand 25.000 Punjab Madhya Pradesh Mizoram 20.000 Bihar Orissa West Bengal Manipur Andhra Pradesh Sikkim Tamil Nadu Jammu & Kashmir 15.000 Himachal Pradesh Kerala Chhattisgarh Haryana Nagaland Goa Gujarat Uttar Pradesh Assam 10.000 Maharashtra 5.000 Tripura Arunachal Pradesh Delhi 0.000 10.00 15.00 20.00 25.00 30.00 35.00 -5.000 Misery Index Rural 2009-10 Source: NSSO, and RBI
  • 35. Change in Urban Misery Index 30.00 Karnataka CAGR Growth rate in Misery Index (Urban) 2005-06 to 2009-10 Meghalaya 25.00 Bihar Rajasthan 20.00 Orissa Chhattisgarh West Bengal Jharkhand Uttarakhand Tamil Nadu Maharashtra Mizoram 15.00 Manipur Andhra Pradesh Jammu & Kashmir Punjab Himachal Pradesh Goa 10.00 Uttar Pradesh Assam Kerala Gujarat Sikkim Delhi 5.00 Haryana Tripura Nagaland Madhya Pradesh Arunachal Pradesh 0.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 Misery Index Urban 2009-10 Source: NSSO, and RBI