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  • DAILY CURRENT AFFAIRS:Extreme poverty in India fell sharply in 2011-19: World Bank paper

Extreme poverty in India fell sharply in 2011-19: World Bank paper

Tags: National Economy/Finance Popular

According to a  working paper of the World Bank ,extreme poverty in India has declined to 10.2% in 2019  from 22.5% in 2011. Extreme poverty in India  fell by  12.3 percent  during this period. 

The working paper of the world bank was authored by economists Sutirtha Sinha Roy and Roy van der Weide, and is not considered as an official report of the World Bank .

Highlights of the report 

  • People earning less than $1.90 per day on the purchasing power parity (PPP) basis are considered poor. At present $1 is equal to 20.65 Indian Rupees on the PPP basis .

  • In the  rural areas poverty declined from 26.3% in 2011 to 11.6% in 2019 a drop of 14.7%  , 

  • In  the urban areas poverty  declined from 14.2% to 6.3%, a drop of 7.9%.

  • There was a sharp rise in poverty for a certain period due to certain factors . Urban deep poverty rose two percentage points in 2016 (coinciding with the demonetisation of high-value currency notes) and rural deep poverty increased 0.1 percentage points in 2019 (coinciding with a slowdown in the economy).

  •  According to the working paper the smallholder farmers have experienced higher income growth as compared to large farmers during the period . The real income of the  farmers with the smallest landholdings have grown by 10 percent in annualized terms between the two survey rounds (2013 and 2019) compared to a 2 percent growth for farmers with the largest landholding.

 In India the last report on Poverty was released by the Planning Commission on the National Sample Survey Organisation monthly per capita expenditure in 2011. The population below the poverty line in India was 21.9% in 2011.

Important for Exam 

World Bank was set up in 1944 

Headquarters : Washington D.C , United States of America 

President : David Malpass

Total member countries : 189

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