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

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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

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10

20

30

40

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60

70

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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

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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

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PJ

RJ

TN

UP WB

JH

CG

UK

Leading

Lagging

Improving

Weakening

2

3

4

5

6

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8

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12

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

An

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05

- 20

12 (%

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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

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ne

in p

over

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20

05

- 20

12 (%

)

All India

AP

AS

BH

GJ

HR

HP

KA

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MP

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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)

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25

0 5 10 15 20 25

Stat

e sh

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in In

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’s p

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12 (%

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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

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12 (%

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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

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pov

erty

rate

, 200

5 - 2

012

(%)

Stat

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in In

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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

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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