Karnataka. Poverty, Growth & Inequality

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1 Karnataka 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. Karnataka s growth, driven mainly by services, also fell below the national average after. 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, 12 (%) MN MG JK Districts in the north and east of Karnataka have very high poverty District level poverty, 12 N Population below the poverty line, 12 (%) No data 1 June, 17

2 Unlike many other states, there has been a steady decline in poverty in Karnataka since Population below poverty line, (%) MN MG JK A steady decline in poverty in both rural and urban areas of Karnataka since 1994 Population below poverty line, (%) 6 7 Rural 4 Total 37 3 Urban June, 17

3 Growth in Karnataka after has been lower than the national average 12 Annual growth rate, - 12 (%) 11 Improving Leading Lagging 3 Weakening 2,, 1,, 2, 3, 3, 4, 4, Real GSDP per capita, ( Rupees) Improvement from to 12 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 Karnataka s growth is driven mainly by services Annual growth rate, (%) Components of GSDP growth rate, (%) Karnataka GSDP All India GDP Services Industry Agriculture 3 June, 17

4 Since, poverty reduction in Karnataka has been slower than in many advanced states Poverty rate, Annual decline in poverty rate, - 12 (%) Low poverty, declining fast High poverty, declining slowly All India Low Income States are highlighted in orange. -17 Karnataka s share of India s poor is equal to its share in the country s total population 2 bubble size: number of poor (millions) State share in India s poor, 12 (%) 4 June, State State share in in India s population, (%) (%) 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 been increasing in Karnataka, especially in urban areas. Gini coefficient Total Rural Urban Consumption inequality in Karnataka is among the highest in the country.4 Gini coefficient, JK MG MN June, 17