Maharashtra Poverty, Growth & Inequality Maharashtra is India’s second most populous state and home to 20 million poor. Poverty declined more rapidly in the state after 2005. As a result, today, poverty levels in Maharashtra are lower than the national average. Yet, districts in the state’s northern and eastern regions continue to display a high incidence of poverty. Since 2005, Maharashtra’s economic growth has been above the national average, supported mainly by services. During this period, consumption inequality in the state — which was already among the highest in the country - increased slightly, albeit mainly in urban areas. Poverty in Maharashtra is below 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 Maharashtra have high poverty District level poverty, 2012 Patna Population below the poverty line, 2012 (%) 0.6-5.2 0-10 5.3-13.2 10-18 13.3-17.2 18-24 N 17.3-22.6 24-35 22.7-62.8 35-51 No data 1 June 20, 2017 1 − 10 10 − 18 18 − 24 24 − 35 Maharashtra Poverty, Growth & Inequality Like many states in India the pace of poverty reduction in Maharashtra 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. After 2005, poverty declined more rapidly in both rural and urban areas of Maharashtra Population below poverty line, (%) 70 59 60 Rural 50 48 Total 48 40 39 30 Urban 30 24 26 20 17 10 9 0 1994 2005 2012 2 June 20, 2017 Maharashtra 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 (%) Growth in Maharashtra was -3 faster than in many other JH states after 2005 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 Growth in Maharashtra is driven by services, industry adds to its volatility Annual growth rate, (%) Components of GSDP growth rate, (%) 15 15 16 16 14 14 6.7 7.2 12 12 7.1 10 10 6.1 5.5 10 10 8 7.1 8 6 6 5.6 4.9 5 5 4.1 4 4 5.1 3.7 4.7 4.6 2 2 2.1 1.0 1.5 1.4 0.1 1.7 0 0 0.1 0 0 -0.3 -0.2 2005 2006 2005 2007 2006 2008 2007 2009 2008 2010 2009 2011 2010 2012 2011 2012 -2 -2 -1.7 -3.5 ■ Maharashtra GSDP ■ All India GDP -4 -4 20052006 2005 20062007 20072008 20082009 20092010 2010201120112012 2012 ■ Services ■ Industry ■ Agriculture 3 June 20, 2017 Maharashtra Poverty, Growth & Inequality Poverty reduction in Maharashtra was faster than the national average 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 A significant share of India’s poor live in Maharashtra 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 Maharashtra Poverty, Growth & Inequality Consumption inequality has increased marginally in Maharashtra, mainly in urban areas Gini coefficient 0.4 0.37 0.37 0.35 0.35 0.33 0.32 0.3 0.29 0.27 0.26 0.2 0.1 0.0 Total Rural Urban ■ 1994 ■ 2005 ■ 2012 Consumption inequality in Maharashtra 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