Madhya PradeshPoverty, Growth & Inequality
1 May 20, 2016
Madhya Pradesh is the 5th most populous state in India and home to 73 million people. Poverty in Madhya Pradesh was similar to the national average in 1994, but since then poverty reduction has lagged the rest of the country. Consumption inequality has increased marginally during this period. The state today has high levels of poverty, especially in the eastern and southern districts, and is home to 24 million poor. Growth is lower than in other states, and is driven mainly by industry and services.
Poverty in Madhya Pradesh is among the highest in the country
GAHPKLPJSKAPDLJKHRUKTNMGRJTRGJMHNLWBKAMZAIUPMPASODBHARMNJHCG
0
10
20
30
40
50
Eastern and southern districts of Madhya Pradesh have very high poverty
Population below poverty line, 2012 (%)
District level poverty, 2012
N
N
0.6-5.25.3-13.213.3-17.217.3-22.622.7-62.8
Patna
Population below the poverty line, 2012 (%)
4-1515-2525-3838-4949-77
★ Bhopal
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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Madhya PradeshPoverty, Growth & Inequality
2 May 20, 2016
Poverty reduction in Madhya Pradesh has lagged the rest of the country
Poverty in Madhya Pradesh increased during 1994-2005, but has declined steadily since then
0
10
20
30
40
50
60
70
MZDLNLGAPJJKKLSKTRUKHPHRMGGJRJWBMPAPTNAIUPMHKACGASARODBHJHMN
Population below poverty line, (%)
Population below poverty line, (%)
Rural
Total
Urban
1994 2005 2012
0
10
20
30
50
40
60
70
Low Income States are highlighted in orange, AI is All India.
● 1994 ● 2005 ● 2012
49
32
54
35
36
21
4549
32
Madhya PradeshPoverty, Growth & Inequality
3 May 20, 2016
2005 2006 2007 2008 2009 2010 2011 2012
2005 2006 2007 2008 2009 2010 2011 2012
0
5
10
15
0
3
6
-5
9
15
12
Madhya Pradesh’s growth is driven by industry and services
2005 2006 2007 2008 2009 2010 2011 2012
2005 2006 2007 2008 2009 2010 2011 2012
0
5
10
15
0
3
6
-5
9
15
12
Growth in Madhya Pradesh has lagged other 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
2
Standard 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, (%)
■ Madhya Pradesh GSDP ■ All India GDP
4.2
0.3-1.4
2.1
1.3
1.9
4.1
4.5
0.7
3.4
1.7
-0.4
4.7
5.5
2.2
5.3
2.1
2.1
4.2
2.10.1
3.9
3.0
1.6
■ Services ■ Industry ■ Agriculture
Madhya PradeshPoverty, Growth & Inequality
4 May 20, 2016
Poverty reduction in Madhya Pradesh slower than in other states
Madhya Pradesh is among the Low Income States where a disproportionate share of India’s poor live
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
Madhya PradeshPoverty, Growth & Inequality
5 May 20, 2016
UrbanRuralTotal0.0
0.1
0.2
0.3
0.4
Gini coefficient
Consumption inequality has increased marginally in Madhya Pradesh, mainly in urban areas
Madhya Pradesh’s consumption inequality is higher than other Low Income states but below 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.
0.28 0.27
0.300.31
0.27
0.37
0.30
0.25
0.37
■ 1994 ■ 2005 ■ 2012