Extreme poverty in India declined by 12.3% factors throughout 2011-19, says World Bank paper

The paper famous that farmers with small landholding sizes have skilled greater revenue progress

Representational picture. News18

New Delhi: Extreme poverty in India declined by 12.3 proportion factors between 2011 and 2019, with rural areas doing higher than city centres, in line with a working paper of the World Bank.

India has not launched a brand new family consumption survey because the NSS from 2011. By extension, the nation has not launched any official estimates of poverty and inequality for over a decade now, added the paper co-authored by economists Sutirtha Sinha Roy and Roy van der Weide.

Earlier, a working paper of the International Monetary Fund (IMF) had stated the Pradhan Mantri Garib Kalyan Yojana (PMGKAY), which gives free foodgrains to the poor, performed a key position in retaining excessive poverty in India on the lowest stage of 0.8 per cent throughout the pandemic-hit 2020.

“We discover that excessive poverty in India has declined by 12.3 proportion factors between 2011 and 2019 however at a price that’s considerably decrease than noticed over the 2004-2011 interval.

“Poverty reduction rates in rural areas are higher than in urban areas,” stated the paper titled ‘Poverty in India Has Declined over the Last Decade But Not As Much As Previously Thought’.


The authors additional stated city poverty rose by 2 proportion factors in 2016 throughout the demonetisation occasion and fell sharply thereafter. Rural poverty rose by 10 foundation factors in 2019 possible as a result of a progress slowdown.

“Our estimates of poverty for recent periods are more conservative than earlier projections based on consumption growth in national accounts and other survey data,” the paper stated.

The paper additional stated the extent of poverty discount throughout 2015-2019 is estimated to be notably decrease than earlier projections based mostly on progress in non-public ultimate consumption expenditure reported in nationwide account statistics.

The authors additionally stated there was no proof of rising consumption inequality of their evaluation.

The paper famous that farmers with small landholding sizes have skilled greater revenue progress.

Real incomes for farmers with the smallest landholdings have grown by 10 per cent in annualised phrases between the 2 survey rounds, in comparison with a 2 per cent progress for farmers with the biggest landholding, it stated.

Rural households proudly owning smaller items of land usually tend to be poorer than others, it added.

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