Case Study - Poverty in India Poverty Situation...

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Poverty in India Poverty Situation (definition/measure/recent trend) India faces a problem of widespread poverty with having the world’s largest number of poor people. Even though, India is experiencing high growth rates, not everyone is benefiting from it. Poverty is still extensive as the poor are impeded from the benefits. There are numerous of measures from different organizations in India, with their results varying from indicators. If we measure India’s poverty using the MPI, then about 55% of the total population is living under poverty in India as of 2010 1 . We can also determine poverty by analyzing a similar measure, the measure of inequality in India. India’s Gini index is 36.8 (2004) 2 , which is around the 80 th highest in the world and keeps increasing. Moreover, the inequality is more serious regionally. About 75% of the total poor population lives in rural areas. For example, in the Indian capital, Delhi, according to the MPI, 15 percent of people are poor, while geographically to the left, in Bihar, the rate is 81 percent. According to a new World Bank paper 3 , India’s poverty situation is getter better with a declining percentage. For India, the poverty rate, $1.25 USD as it is India’s PPP rate, has declined from 60% to 42%. While, if taken $1 USD, India’s poverty rate has declined from 42% to 24%. With analysis of the data, India’s poverty rate is decreasing almost 1 percentage every year. However, the number of people is increasing, from 421 million (1981) to 456 million (2005). This shows us that there is still a considerably increasing number of people living under poverty in India. However, another study which includes indicators for heath, education, sanitation, nutrition and income indicates that the poverty rate is underestimated to be at least 35% 2 . According to the absolute poverty measure, money required to buy food worth 2100 calories in
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Case Study - Poverty in India Poverty Situation...

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