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Uttar Pradesh Poverty, Growth & Inequality 1 May 20, 2016 Uttar Pradesh is the most populous state in India and is home to 200 million people, 60 million of who are poor. The pace of poverty reduction in the state has been slower than the rest of the country. Poverty is widespread. The central and eastern districts in particular have very high levels of poverty. The state is also experiencing widening consumption inequality in urban areas. Growth is slow and is driven mainly by services. Poverty in Uttar Pradesh is slightly above the national average GA HP KL PJ SK AP DL JK HR UK TN MG RJ TR GJ MH NL WB KA MZ AI UP MP AS OD BH AR MN JH CG 0 10 20 30 40 50 Central and eastern districts of Uttar Pradesh have very high poverty Population below poverty line, 2012 (%) N 2-18 18-26 26-33 33-44 44-62 Lucknow Population below the poverty line, 2012 (%) 40 37 37 35 34 33 32 32 29 22 22 21 20 19 17 17 15 15 12 12 11 11 11 10 9 9 8 8 8 5 Low Income States are highlighted in orange, AI is All India. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

World Bank Document...Uttar Pradesh is home to the largest number of India’s poor Poverty rate, 2005 bubble size: number of poor (millions) 0 5 10 15 20 25 0 51 01 52 02 5 State

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Page 1: World Bank Document...Uttar Pradesh is home to the largest number of India’s poor Poverty rate, 2005 bubble size: number of poor (millions) 0 5 10 15 20 25 0 51 01 52 02 5 State

Uttar Pradesh Poverty, Growth & Inequality

1 May 20, 2016

Uttar Pradesh is the most populous state in India and is home to 200 million people, 60 million of who are poor. The pace of poverty reduction in the state has been slower than the rest of the country. Poverty is widespread. The central and eastern districts in particular have very high levels of poverty. The state is also experiencing widening consumption inequality in urban areas. Growth is slow and is driven mainly by services.

Poverty in Uttar Pradesh is slightly above the national average

GAHPKLPJSKAPDLJKHRUKTNMGRJTRGJMHNLWBKAMZAIUPMPASODBHARMNJHCG

0

10

20

30

40

50

Central and eastern districts of Uttar Pradesh have very high poverty

Population below poverty line, 2012 (%)

N

2-1818-2626-3333-4444-62

Lucknow

Population below the poverty line, 2012 (%)

4037 37

35 34 33 32 3229

22 22 21 20 1917 17

15 1512 12 11 11 11 10 9 9 8 8 8

5

Low Income States are highlighted in orange, AI is All India.

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Page 2: World Bank Document...Uttar Pradesh is home to the largest number of India’s poor Poverty rate, 2005 bubble size: number of poor (millions) 0 5 10 15 20 25 0 51 01 52 02 5 State

Uttar Pradesh Poverty, Growth & Inequality

2 May 20, 2016

Poverty reduction in Uttar Pradesh has lagged the rest of the country

Poverty declined in both rural and urban areas of Uttar Pradesh more rapidly after 2005

0

10

20

30

40

50

60

70

MZDLNLGAPJJKKLSKTRUKHPHRMGGJRJWBMPAPTNAIUPMHKACGASARODBHJHMN

Population below poverty line, (%)

Population below poverty line, (%)

Rural

Total

Urban

1994 2005 2012

0

10

20

30

40

50

60

70

Low Income States are highlighted in orange, AI is All India.

● 1994 ● 2005 ● 2012

51

38

43

3430

26

48

41

29

Page 3: World Bank Document...Uttar Pradesh is home to the largest number of India’s poor Poverty rate, 2005 bubble size: number of poor (millions) 0 5 10 15 20 25 0 51 01 52 02 5 State

Uttar Pradesh Poverty, Growth & Inequality

3 May 20, 2016

2005 2006 2007 2008 2009 2010 2011 2012

2005 2006 2007 2008 2009 2010 2011 2012

0

5

10

15

0

2

4

6

8

10

Services contribute the most to Uttar Pradesh’s growth

2005 2006 2007 2008 2009 2010 2011 2012

2005 2006 2007 2008 2009 2010 2011 2012

0

5

10

15

0

2

4

6

8

10

Uttar Pradesh is among the slowest growing states in the country

AP

AS

BH

GJ

HR HP

KA

KL

MP

MH

OD

PJ

RJ

TN

UP WB

JH

CG

UK

Leading

Lagging

Improving

Weakening

2

3

4

5

6

7

8

9

10

11

12

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

An

nu

al g

row

th r

ate,

20

05

- 20

12 (%

)

Real GSDP per capita, (2005 Rupees) All India

ImprovingLow income, high growth

LeadingHigh income, high growth

LaggingLow income, low growth

WeakeningHigh income, low growth

Impr

ovem

ent f

rom

200

5 to

201

2

Standard of living, 2005

Interpreting the graph

Annu

al g

row

th ra

te, 2

005

- 201

2 (%

)

Real GSDP per capita, (2005 Rupees)

High poverty, declining slowly

Low poverty, declining fast

-17

-15

-13

-11

-9

-7

-5

-3

-1

0 10 20 30 40 50 60 70 80

An

nu

al d

ecli

ne

in p

over

ty r

ate,

20

05

- 20

12 (%

)

All India

AP

AS

BH

GJ

HR

HP

KA

KL

MP

MH

OD

PJ

RJ

TN

UP

WB

JH CG

UK

Annual growth rate, (%) Components of GSDP growth rate, (%)

Data for 19 large states and All India. Low Income States are highlighted in orange.

■ Uttar Pradesh GSDP ■ All India GDP

1.6

4.6

-0.8

3.4

2.5

0.7

4.1

3.3

0.7

4.2

2.2

1.0

5.6

0.41.0

4.9

-0.1

1.8

5.1

1.7

1.1

4.2

1.30.1

■ Services ■ Industry ■ Agriculture

Page 4: World Bank Document...Uttar Pradesh is home to the largest number of India’s poor Poverty rate, 2005 bubble size: number of poor (millions) 0 5 10 15 20 25 0 51 01 52 02 5 State

Uttar Pradesh Poverty, Growth & Inequality

4 May 20, 2016

Slower poverty reduction in Uttar Pradesh than some of the Low Income States

Uttar Pradesh is home to the largest number of India’s poor

Poverty rate, 2005

bubble size: number of poor (millions)

0

5

10

15

20

25

0 5 10 15 20 25

Stat

e sh

are

in In

dia

’s p

oor,

20

12 (%

)

State share in India’s population, 2012 (%)

AP AS

BH

GJ

HR

KA

KL

MP

MH

OD

PJ

RJ

TN

UP

WB JH

CG

UK HP

High poverty, declining slowly

Low poverty, declining fast

-17

-15

-13

-11

-9

-7

-5

-3

-1

0 10 20 30 40 50 60 70 80

An

nu

al d

ecli

ne

in p

over

ty r

ate,

20

05

- 20

12 (%

)

All India

AP

AS

BH

GJ

HR

HP

KA

KL

MP

MH

OD

PJ

RJ

TN

UP

WB

JH CG

UK

Annu

al d

eclin

e in

pov

erty

rate

, 200

5 - 2

012

(%)

Stat

e sh

are

in In

dia’

s po

or, 2

012

(%)

State share in India’s population, 2012 (%)

Wha

t % o

f Ind

ia’s

poor

live

s in

this

sta

te?

What % of India’s population lives in this state?

Interpreting the graph

Share of poor > share of population

Share of poor < share of populationShare of p

oor = share of p

opulation

Data for 19 large states and All India. Low Income States are highlighted in orange.

Data for 19 large states and All India. Low Income States are highlighted in yellow.

Page 5: World Bank Document...Uttar Pradesh is home to the largest number of India’s poor Poverty rate, 2005 bubble size: number of poor (millions) 0 5 10 15 20 25 0 51 01 52 02 5 State

Uttar Pradesh Poverty, Growth & Inequality

5 May 20, 2016

UrbanRuralTotal

0.0

0.1

0.2

0.3

0.4

0.5

Gini coefficient

Consumption inequality has increased mainly in urban areas of Uttar Pradesh

Uttar Pradesh’s consumption inequality is below the national average

Gini coefficient, 2012

MNMGSKBHNLTRASRJJHJKODMZGJAPUKGAHPPJUPCGMPWBHRAITNARMHKADLKL

0.1

0.2

0.3

0.4

Low Income States are highlighted in orange, AI is All India.

0.270.25

0.300.31

0.25

0.42

0.280.25

0.35

■ 1994 ■ 2005 ■ 2012