Kerala Poverty, Growth & Inequality Kerala has experienced a steady decline in poverty since 1994. As a result, poverty levels in the state are among the lowest in the country. After 2005, Kerala  grew and reduced poverty faster than many other states, with growth being driven mainly by services. But, while Kerala is home to a small share of India’s poor, pockets within the state record a high incidence of poverty. In addition, Kerala has the highest levels of consumption inequality in the country. Poverty in Kerala 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. Some districts in Kerala, such as in the north, have more poverty District level poverty, 2012 Patna Population below the poverty line, 2012 (%) 0.6-5.2 3-4 5.3-13.2 4-5 13.3-17.2 5-7 N 17.3-22.6 7-10 22.7-62.8 10-37 1 June 20, 2017 3−4 4−5 Kerala Poverty, Growth & Inequality There has been a steady decline in poverty in Kerala 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. Poverty declined at a faster rate in urban areas of Kerala after 2005 Population below poverty line, (%) 40 34 Rural Total 30 31 Urban 20 24 20 20 18 10 9 8 5 0 1994 2005 2012 2 June 20, 2017 Kerala 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 than the national average Growth in Kerala is higher 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 Kerala’s growth mainly driven by services Annual growth rate, (%) Components of GSDP growth rate, (%) 15 15 12 12 10 10 6.0 6.9 7.7 10 10 7.4 7.2 8 8 4.8 6 6 5.2 4.4 5 5 4 4 3.4 2.3 2.9 2 2 1.5 0.1 1.7 1.0 1.5 0 0 0.5 0.9 0.3 0.5 2005 2006 2005 2007 2006 2008 2007 2009 2008 2010 2009 20112011 2010 20122012 0 0 -1.0 -0.2 -0.2 -0.7 ■ Kerala GSDP ■ All India GDP -2 -2 2005 20052006 20062007 20072008 20082009 20092010 20102011201120122012 ■ Services ■ Industry ■ Agriculture 3 June 20, 2017 Kerala Poverty, Growth & Inequality The pace of poverty reduction in Kerala after 2005 has been faster than in many other 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 The share of India’s poor in Kerala is small 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 Kerala Poverty, Growth & Inequality Consumption inequality in Kerala increased largely in the period between 1994 and 2005 Gini coefficient 0.40 0.40 0.4 0.38 0.36 0.36 0.35 0.32 0.3 0.29 0.27 0.2 0.1 0.0 Total Rural Urban ■ 1994 ■ 2005 ■ 2012 Kerala has the highest consumption inequality 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