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West BengalPoverty, Growth & Inequality
1 June 20, 2017
West Bengal is India’s 4th most populous state in India with 91 million people, a fifth of who are poor. Although poverty reduction in the state was faster after 2005, pockets of high poverty still persist within the state. What’s more, after 2005, the state’s economic growth, which is driven mainly by services, has been weak. So much so that West Bengal grew at an even slower pace than the country’s other low income states. Furthermore, consumption inequality, which increased marginally after 2005, is close to the national average.
Poverty in West Bengal is close to the national average
GAHPKLPJSKAPDLJKHRUKTNMGRJTRGJMHNLWBKAMZAIUPMPASODBHARMNJHCG
0
10
20
30
40
50
Some districts in West Bengal have very high poverty
Population below poverty line, 2012 (%)
District level poverty, 2012
4 − 99 − 2020 − 2626 − 3131 − 38
N
0.6-5.25.3-13.213.3-17.217.3-22.622.7-62.8
Patna
Population below the poverty line, 2012 (%)
4-99-2020-2626-3131-38
4037 37
35 34 33 32 3229
22 22 21 20 1917 17
15 1512 12 11 11 11 10 9 9 8 8 8
5
Low Income States are highlighted in orange, AI is All India.
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West BengalPoverty, Growth & Inequality
2 June 20, 2017
Like many other states, poverty reduction in West Bengal was faster after 2005
There was faster poverty reduction in both rural and urban areas of West Bengal after 2005
0
10
20
30
40
50
60
70
MZDLNLGAPJJKKLSKTRUKHPHRMGGJRJWBMPAPTNAIUPMHKACGASARODBHJHMN
Population below poverty line, (%)
Population below poverty line, (%)
RuralTotal
Urban
1994 2005 2012
0
10
20
30
50
40
60
Low Income States are highlighted in orange, AI is All India.
● 1994 ● 2005 ● 2012
42
31
38
24
23
15
40
35
20
West BengalPoverty, Growth & Inequality
3 June 20, 2017
0
5
10
15
2005 2006 2007 2008 2009 2010 2011 20120
4
2
8
6
-2
10
2005 2006 2007 2008 2009 2010 2011 2012
Services contribute the most to West Bengal’s growth
0
5
10
15
2005 2006 2007 2008 2009 2010 2011 20120
4
2
8
6
-2
10
2005 2006 2007 2008 2009 2010 2011 2012
Since 2005, West Bengal’s growth has lagged behind most other states in India, including the Low Income States
AP
AS
BH
GJ
HR HP
KA
KL
MP
MH
OD
PJ
RJ
TN
UP WB
JH
CG
UK
Leading
Lagging
Improving
Weakening
2
3
4
5
6
7
8
9
10
11
12
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
An
nu
al g
row
th r
ate,
20
05
- 20
12 (%
)
Real GSDP per capita, (2005 Rupees) All India
ImprovingLow income, high growth
LeadingHigh income, high growth
LaggingLow income, low growth
WeakeningHigh income, low growth
Impr
ovem
ent f
rom
200
5 to
201
2Standard of living, 2005
Interpreting the graph
Annu
al g
row
th ra
te, 2
005
- 201
2 (%
)
Real GSDP per capita, (2005 Rupees)
High poverty, declining slowly
Low poverty, declining fast
-17
-15
-13
-11
-9
-7
-5
-3
-1
0 10 20 30 40 50 60 70 80
An
nu
al d
ecli
ne
in p
over
ty r
ate,
20
05
- 20
12 (%
)
All India
AP
AS
BH
GJ
HR
HP
KA
KL
MP
MH
OD
PJ
RJ
TN
UP
WB
JH CG
UK
Data for 19 large states and All India. Low Income States are highlighted in orange.
Annual growth rate, (%) Components of GSDP growth rate, (%)
■ West Bengal GSDP ■ All India GDP
4.5
3.9
-1.5
5.0
0.70.5
5.5
1.8
0.5
5.0
1.5
1.4
5.8
-0.4-0.5
4.7
1.4
1.9
5.0
1.2
-0.4
5.0
-0.40.1
■ Services ■ Industry ■ Agriculture
West BengalPoverty, Growth & Inequality
4 June 20, 2017
The pace of poverty reduction in West Bengal after 2005 was similar to the national average
A substantial share of India’s poor live in West Bengal
Poverty rate, 2005
bubble size: number of poor (millions)
0
5
10
15
20
25
0 5 10 15 20 25
Stat
e sh
are
in In
dia
’s p
oor,
20
12 (%
)
State share in India’s population, 2012 (%)
AP AS
BH
GJ
HR
KA
KL
MP
MH
OD
PJ
RJ
TN
UP
WB JH
CG
UK HP
High poverty, declining slowly
Low poverty, declining fast
-17
-15
-13
-11
-9
-7
-5
-3
-1
0 10 20 30 40 50 60 70 80
An
nu
al d
ecli
ne
in p
over
ty r
ate,
20
05
- 20
12 (%
)
All India
AP
AS
BH
GJ
HR
HP
KA
KL
MP
MH
OD
PJ
RJ
TN
UP
WB
JH CG
UK
Data for 19 large states and All India. Low Income States are highlighted in orange.
Data for 19 large states and All India. Low Income States are highlighted in yellow.
Annu
al d
eclin
e in
pov
erty
rate
, 200
5 - 2
012
(%)
Stat
e sh
are
in In
dia’
s po
or, 2
012
(%)
State share in India’s population, 2012 (%)
Wha
t % o
f Ind
ia’s
poor
live
s in
this
sta
te?
What % of India’s population lives in this state?
Interpreting the graph
Share of poor > share of population
Share of poor < share of populationShare of p
oor = share of p
opulation
West BengalPoverty, Growth & Inequality
5 June 20, 2017
UrbanRuralTotal0.0
0.1
0.2
0.3
0.4
Gini coefficient
Since 2005, consumption inequality has increased marginally in West Bengal
Consumption inequality in West Bengal is close to the national average
Gini coefficient, 2012
MNMGSKBHNLTRASRJJHJKODMZGJAPUKGAHPPJUPCGMPWBHRAITNARMHKADLKL
0.1
0.2
0.3
0.4
Low Income States are highlighted in orange, AI is All India.
0.27
0.24
0.330.32
0.24
0.39
0.31
0.26
0.37
■ 1994 ■ 2005 ■ 2012