Madhya Pradesh. Poverty, Growth & Inequality

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1 Madhya Pradesh Madhya Pradesh is the th most populous state in India and home to 73 million people. Poverty in Madhya Pradesh was similar to the national average in 14, but since then poverty reduction has lagged the rest of the country. Consumption inequality has increased marginally during this period. The state today has high levels of poverty, especially in the eastern and southern districts, and is home to 24 million poor. Growth is lower than in other states, and is driven mainly by industry and services. Poverty in Madhya Pradesh is among the highest in the country Population below poverty line, 2 (%) MN AR AI MZ NL TR MG JK DL SK GA Eastern and southern districts of Madhya Pradesh have very high poverty District level poverty, 2 Patna Bhopal Population below the poverty line, 2 (%) N N 1 May 2,

2 Poverty reduction in Madhya Pradesh has lagged the rest of the country 7 Population below poverty line, (%) MN AR AI MG TR SK JK GA NL DL MZ Poverty in Madhya Pradesh increased during 14-2, but has declined steadily since then Population below poverty line, (%) Rural Total Urban May 2, 216

3 Growth in Madhya Pradesh has lagged other states Annual growth rate, 2-2 (%) Improving Leading Lagging 3 Weakening 2,,, 2, 2, 3, 3, 4, 4, Real GSDP per capita, (2 Rupees) Improvement from 2 to 2 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, 2 Leading High income, high growth Weakening High income, low growth Madhya Pradesh s growth is driven by industry and services Annual growth rate, (%) Components of GSDP growth rate, (%) Madhya Pradesh GSDP All India GDP Services Industry Agriculture 3 May 2, 216

4 Poverty reduction in Madhya Pradesh slower than in other states Poverty rate, Annual decline in poverty rate, 2-2 (%) 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 Madhya Pradesh is among the Low Income States where a disproportionate share of India s poor live 2 bubble size: number of poor (millions) State share in India s poor, 2 (%) 4 May 2, State State share in in India s population, 2 2 (%) (%) 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?

5 Consumption inequality has increased marginally in Madhya Pradesh, mainly in urban areas.4 Gini coefficient Total Rural Urban Madhya Pradesh s consumption inequality is higher than other Low Income states but below the national average.4 Gini coefficient, DL AR AI GA MZ JK TR NL SK MG MN May 2, 216