West Bengal. Poverty, Growth & Inequality

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West Bengal West Bengal is India s 4th most populous state in India with 1 million people, a fifth of who are poor. Although poverty reduction in the state was faster after, pockets of high poverty still persist within the state. What s more, after, the state s economic growth, which is driven mainly by services, has been weak. So much so that West Bengal grew at an even slower pace than the country s other low income states. Furthermore, consumption inequality, which increased marginally after, is close to the national average. Poverty in West Bengal is close to the national average Population below poverty line, (%) 4 4 37 37 3 34 33 32 32 2 3 22 22 21 1 17 17 MN AR AI MZ NL TR MG JK DL SK GA Some districts in West Bengal have very high poverty District level poverty, Patna Population below the poverty line, (%) N 1 June, 17.6-.2 4-.3-13.2-13.3-17.2-26 17.3-22.6 26-31 22.7-62. 31-3

Like many other states, poverty reduction in West Bengal was faster after 7 Population below poverty line, (%) 6 4 3 MN AR AI MG TR SK JK GA NL DL MZ 14 There was faster poverty reduction in both rural and urban areas of West Bengal after 6 Population below poverty line, (%) 4 Rural Total 42 4 3 3 Urban 31 3 23 24 14 2 June, 17

Since, West Bengal s growth has lagged behind most other states in India, including the Low Income States Annual growth rate, - (%) Improving Leading 7 6 4 Lagging 3 Weakening 2,,,, 2, 3, 3, 4, 4, Real GSDP per capita, ( Rupees) Improvement from to All India Data for 1 large states and All India. Low Income States are highlighted in orange. Interpreting the graph Improving Low income, high growth Lagging Low income, low growth Standard of living, Leading High income, high growth Weakening High income, low growth Services contribute the most to West Bengal s growth Annual growth rate, (%) Components of GSDP growth rate, (%) 6 7 6 4 2 4. 3. -1...7.. 1... 1. 1.4. -.4 -. 4.7 1. 1.4. 1.2 -.4..1 -.4 West Bengal GSDP All India GDP -2 6 7 Services Industry Agriculture 3 June, 17

The pace of poverty reduction in West Bengal after was similar to the national average Poverty rate, 3 4 6 7 Annual decline in poverty rate, - (%) -1-3 - -7 - - -13 - Low poverty, declining fast High poverty, declining slowly All India Data for 1 large states and All India. Low Income States are highlighted in orange. -17 A substantial share of India s poor live in West Bengal 2 bubble size: number of poor (millions) State share in India s poor, (%) 4 June, 17 2 State State share in in India s population, (%) (%) Data for 1 large states and All India. Low Income States are highlighted in yellow. What % of India s poor lives in this state? Interpreting the graph Share of poor > share of population Share of poor < share of population Share of poor = share of population What % of India s population lives in this state?

Since, consumption inequality has increased marginally in West Bengal Gini coefficient.4.3.37.3.27.32.31.26.24.24.33.2.1. Total Rural Urban 14 Consumption inequality in West Bengal is close to the national average.4 Gini coefficient,.3.2.1 DL AR AI GA MZ JK TR NL SK MG MN June, 17