Tamil Nadu Poverty, Growth & Inequality Tamil Nadu is one of India’s richest states. Since 1994, the state has seen a steady decline in poverty, with the result that today, Tamil Nadu has lower levels of poverty than most other states in the country. Nevertheless, parts of the state still record high levels of poverty. After 2005, Tamil Nadu was among India’s fastest growing states, with growth being driven mainly by services. Although consumption inequality in the state decreased slightly after 2005, it still remains higher than in many other states. Poverty in Tamil Nadu is lower than in many Indian states 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. Parts of Tamil Nadu have high poverty District level poverty, 2012 Patna Population below the poverty line, 2012 (%) 0.6-5.2 0-4 5.3-13.2 4-6 13.3-17.2 6-10 N 17.3-22.6 10-17 22.7-62.8 17-54 No data 1 June 20, 2017 Tamil Nadu Poverty, Growth & Inequality Since 1994, there has been a steady decline in poverty in Tamil Nadu 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 has declined steadily in both rural and urban areas of Tamil Nadu after 1994 Population below poverty line, (%) 60 51 50 Rural Total 45 40 38 Urban 30 34 31 20 16 20 12 10 7 0 1994 2005 2012 2 June 20, 2017 Tamil Nadu 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 been among the fastest in India after 2005 Growth in Tamil Nadu has 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 Services drive Tamil Nadu’s economic growth Annual growth rate, (%) Components of GSDP growth rate, (%) 20 20 18 18 16 16 15 15 9.5 14 14 8.0 12 12 7.7 5.8 10 10 10 10 4.3 8 8 5.3 5 5 6 6 5.4 5.9 4.5 6.3 5.2 4.3 4.7 4 4 0 0 2 2 1.3 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 0.5 1.5 1.5 1.2 0.6 0.6 0.8 0 0 -0.5 -0.6 -0.2 ■ Tamil Nadu GSDP ■ All India GDP -2 -2 2005 2006 2005 20062007 20082009 20072008 20092010 2011 2012 2010 2011 2012 ■ Services ■ Industry ■ Agriculture 3 June 20, 2017 Tamil Nadu Poverty, Growth & Inequality Poverty reduction in Tamil Nadu has been faster than in many other states after 2005 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 Tamil Nadu has a smaller share of India’s poor relative to its population 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 Tamil Nadu Poverty, Growth & Inequality Consumption inequality in Tamil Nadu decreased marginally after 2005 Gini coefficient 0.4 0.36 0.34 0.34 0.33 0.33 0.31 0.3 0.28 0.28 0.28 0.2 0.1 0.0 Total Rural Urban ■ 1994 ■ 2005 ■ 2012 Consumption inequality in Tamil Nadu is higher than 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