Punjab Poverty, Growth & Inequality With poor people making up less than a tenth of its population, Punjab is one of India’s richest states. After 2005, poverty reduction in the state was among the fastest in the country. In spite of this, Punjab’s western and central districts record higher levels of poverty than its other regions. Since 2005, however, the state’s growth has fallen below the national average. And, off late, services have contributed more to growth than manufacturing. Surprisingly, after 2005, consumption inequality in Punjab has decreased, albeit only slightly. Poverty in Punjab is among the lowest in the country Population below poverty line, 2012 (%) 50 40 40 37 37 35 34 33 32 32 30 29 22 22 21 20 20 19 17 17 15 15 12 12 11 11 11 10 10 9 9 8 8 8 5 0 CG JH MN AR BH OD AS MP UP AI MZ KA WB NL MH GJ TR RJ MG TN UK HR JK DL AP SK PJ KL HP GA Low Income States are highlighted in orange, AI is All India. There is higher poverty in the central and western parts of Punjab than the rest of the state District level poverty, 2012 Patna Population below the poverty line, 2012 (%) 0.6-5.2 3-5 5.3-13.2 5-7 13.3-17.2 7-9 N 17.3-22.6 9-11 22.7-62.8 11-18 1 June 20, 2017 3−5 Punjab Poverty, Growth & Inequality Like many states in India, poverty reduction in Punjab was faster after 2005 Population below poverty line, (%) 70 60 50 40 30 20 10 0 MN JH BH OD AR AS CG KA MH UP AI TN AP MP WB RJ GJ MG HR HP UK TR SK KL JK PJ GA NL DL MZ ● 1994 ● 2005 ● 2012 Low Income States are highlighted in orange, AI is All India. Poverty reduced in both rural and urban areas in Punjab after 2005 Population below poverty line, (%) 30 27 Urban 22 22 Total 20 Rural 21 20 19 10 9 8 8 0 1994 2005 2012 2 June 20, 2017 Punjab Poverty, Growth & Inequality 0 10 20 30 40 50 60 70 80 -1 AS High poverty, declining slowly Annual decline in poverty rate, 2005 - 2012 (%) -3 lower than the national average after 2005 Growth in Punjab has been JH CG 12 UP -5 UK 11 MP KA BH (%) (%) -7 10 Improving WB Leading All India OD - 2012 - 2012 -9 GJ 9 Data for 19 large states and All India. TN Low Income States are highlighted in orange. 2005 HR rate, 2005 8 -11 AP MH GJ RJ MH rate, KL KL HR 7 PJ HP Interpreting the graph -13 BH RJ TN growth OD KA growth 6 MP CGHP Improvement from 2005 to 2012 UK PJ Improving Leading -15 Low poverty, WB Low income, High income, Annual 5 UP declining fast AP high growth high growth Annual JH 4 -17 Lagging Weakening AS Lagging Weakening 3 Low income, High income, low growth low growth 2 Standard of living, 2005 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Real Real GSDP GSDP per capita, per capita, (2005 (2005 Rupees) Rupees) All India Since 2009, services have been contributing more to Punjab’s growth than manufacturing Annual growth rate, (%) Components of GSDP growth rate, (%) 15 15 12 12 10 10 3.7 3.2 10 10 8 8 6 6 5.6 3.7 4.2 5.4 2.8 4.8 4.0 1.9 5 5 4 4 3.5 2.8 2 2 2.6 1.9 1.3 0.7 0 0 0.3 0.9 1.1 0.6 0.4 0.4 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 0 0 -0.4 -0.1 ■ Punjab GSDP ■ All India GDP -2 -2 20052006 2005 20062007 20082009 20072008 20092010 20112012 20102011 2012 ■ Services ■ Industry ■ Agriculture 3 June 20, 2017 Punjab Poverty, Growth & Inequality Poverty reduction in Punjab after 2005 has been faster than in most states Poverty rate, 2005 0 10 20 30 40 50 60 70 80 -1 AS High poverty, (%) declining slowly 2012(%) -3 2005 --2012 JH CG UP rate,2005 -5 MP rate, KA BH -7 WB All India in poverty OD in poverty -9 GJ Data for 19 large states and All India. Low Income States are highlighted in orange. HR decline -11 MH RJ decline KL Annual PJ -13 TN HP Annual UK -15 Low poverty, declining fast AP -17 A very small share of India’s poor live in Punjab bubble size: number of poor (millions) 25 UP (%) (%) 20 2012 2012 poor, BH Data for 19 large states and All India. poor, 15 Low Income States are highlighted in yellow. India’s in India’s Interpreting the graph What % of India’s poor lives in this state? share in 10 MP share MH Share of poor > share io n at of population pul po State OD of State KA WB e JH ar 5 sh CG RJ or = po AS GJ AP of TN ar e Share of poor < share HR Sh of population KL UK PJ 0 HP What % of India’s population lives in this state? 0 5 10 15 20 25 State share State in share inIndia’s population, India’s population, 2012 (%) (%) 2012 4 June 20, 2017 Punjab Poverty, Growth & Inequality Slight reduction in consumption inequality in Punjab after 2005 Gini coefficient 0.4 0.34 0.32 0.31 0.30 0.3 0.29 0.28 0.26 0.25 0.24 0.2 0.1 0.0 Total Rural Urban ■ 1994 ■ 2005 ■ 2012 Consumption inequality in Punjab is just below the national average Gini coefficient, 2012 0.4 0.3 0.2 0.1 KL DL KA MH AR TN AI HR WB MP CG UP PJ HP GA UK AP GJ MZ OD JK JH RJ AS TR NL BH SK MG MN Low Income States are highlighted in orange, AI is All India. 5 June 20, 2017