Karnataka Poverty, Growth & Inequality Karnataka is home to 61 million people of whom 13 million — or a little more than one fifth — are poor. Since 1994, the state has made steady progress in poverty reduction; however the pace of poverty reduction slowed down after 2005. Karnataka’s growth, driven mainly by services, also fell below the national average after 2005. Moreover, consumption inequality increased, a lot more in urban areas. Today, the state has one of the highest levels of consumption inequality in the country, and pockets in the north and the east of the state record a high incidence of poverty. Poverty in Karnataka is close to the national average 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. Districts in the north and east of Karnataka have very high poverty District level poverty, 2012 Patna Population below the poverty line, 2012 (%) 0.6-5.2 0-10 5.3-13.2 10-16 13.3-17.2 16-23 N 17.3-22.6 23-36 22.7-62.8 36-47 No data 1 June 20, 2017 Karnataka Poverty, Growth & Inequality Unlike many other states, there has been a steady decline in poverty in Karnataka since 1994 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. A steady decline in poverty in both rural and urban areas of Karnataka since 1994 Population below poverty line, (%) 60 57 50 Rural Total 40 50 37 30 Urban 34 34 25 20 26 21 10 15 0 1994 2005 2012 2 June 20, 2017 Karnataka 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 2005 has been lower than the national average Growth in Karnataka after 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 Karnataka’s growth is driven mainly by services Annual growth rate, (%) Components of GSDP growth rate, (%) 15 15 14 14 12 12 7.1 10 10 10 10 6.1 5.4 4.7 2.1 8 8 5.4 5.1 6 6 5 5 5.1 3.4 2.8 4 4 3.9 2.5 2 2 2.3 2.6 1.9 2.0 1.6 1.1 0 0 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 20112011 20122012 0.4 0.6 0.9 0 0 -0.5 -0.4 -1.1 ■ Karnataka GSDP ■ All India GDP -2 -2 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011201120122012 ■ Services ■ Industry ■ Agriculture 3 June 20, 2017 Karnataka Poverty, Growth & Inequality Since 2005, poverty reduction in Karnataka has been slower than in many advanced 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 Karnataka’s share of India’s poor is equal to its share in the country’s total 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 Karnataka Poverty, Growth & Inequality Consumption inequality has been increasing in Karnataka, especially in urban areas Gini coefficient 0.5 0.42 0.4 0.37 0.36 0.31 0.3 0.30 0.28 0.27 0.25 0.24 0.2 0.1 0.0 Total Rural Urban ■ 1994 ■ 2005 ■ 2012 Consumption inequality in Karnataka is among the highest in the country 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