Assam Poverty, Growth and Inequality Brief

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Public Disclosure Authorized Public Disclosure Authorized

Assam

Poverty, Growth & Inequality Assam is home to 31 million people, a third of whom are poor. While poverty levels in Assam declined rapidly between 1994 and 2005, the state has since lagged behind most other states in reducing poverty. The incidence of poverty in Assam remains higher than the national average, with poverty levels being very high in some parts of the state. Growth, which is driven mainly by services, is among the lowest in the country. Consumption inequality, while low relative to other Indian states, has been increasing, especially in urban areas.

Poverty in Assam is higher than in most other Indian states Population below poverty line, 2012 (%) 50

Public Disclosure Authorized

40

40 37

37

35

34

33

32

32 29

30

22

22

21

20

20

19

17

17

15

15 12

12

10

11

11

11

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

Public Disclosure Authorized

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

There are pockets of very high poverty within Assam District level poverty, 2012 Patna

Population below the poverty line, 2012 (%)

N

1

June 20, 2017

0.6-5.2 6-20 5.3-13.2 20-26 13.3-17.2 26-32 17.3-22.6 32-43 22.7-62.8 43-60


Assam

Poverty, Growth & Inequality Since 2005, the pace of poverty reduction in Assam has been slower than in most other states 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

● 1994

● 2005

GJ MG HR HP UK TR SK KL JK

PJ

GA NL DL MZ

● 2012

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

Poverty declined sharply in both rural and urban areas of Assam between 1994 and 2005 Population below poverty line, (%) 70

60

50

Rural Total

55 52

40

30

36 35

Urban

34 32

28

20

22

21

2005

2012

10

0 1994

2

June 20, 2017


Assam

Poverty, Growth & Inequality 0

10

20

30

Annual decline in poverty rate, 2005 - 2012 (%)

-1

40

50

60

70

80

High poverty, declining slowly

AS

Assam lags behind most -3 Indian states in economicJHgrowth

Annual growth 2005- 2012 - 2012 Annual growthrate, rate, 2005 (%) (%)

11

CG

-5

9 8 7 6

WB

-9

All India

GJ HR

-11 KL PJ RJ

BH -13

OD CGHP MP

-17 Lagging

4

BH

Leading OD

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

TN

-15

5

MP

KA

-7

Improving

10

UP

UK

Low poverty, UP declining fast

GJ

AP MH RJ

MH

KL HP

TN

HR

Interpreting the graph

KA

UK

Improvement from 2005 to 2012

12

PJ

WB AP

JH AS

Weakening

3 2

0

Leading High income, high growth

Lagging Low income, low growth

Weakening High income, low growth

Standard of living, 2005

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

per capita, (2005 RealReal GSDPGSDP per capita, (2005 Rupees)

Improving Low income, high growth

Rupees) All India

Services contribute most to Assam’s economic growth, which is lower than the national average Annual growth rate, (%)

Components of GSDP growth rate, (%) 10 10

15 15

8

8

6

6

5.3 0.4

10 10

4

6.5

3.6 3.7

4

4.2

4.2

4.0

3.4

2.1

5

5

2 0

0

0 20052006 20062007 20072008 20082009 20092010 20102011201120122012 2005

■ Assam GSDP

■ All India GDP

2 0

-3.2

0.7 -1.0

0.5 0.0

0.2 0.7

1.6 0.5

1.6

0.4 0.7

0.9 0.4

-2 -2 -4 -4 20052006 20062007 20072008 20082009 20092010 2010 20112011 2012 2012 2005

■ Services

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June 20, 2017

■ Industry

■ Agriculture


Assam

Poverty, Growth & Inequality Poverty reduction has been the slowest in Assam after 2005 Poverty rate, 2005

Annual decline in poverty rate, 2012 Annual decline in poverty rate,2005 2005 --2012 (%)(%)

0

10

20

30

-1

40

50

60

70

80

High poverty, declining slowly

AS

-3

JH CG UP

-5

MP

KA

-7

WB

-9

BH

All India

OD

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

GJ HR

-11

RJ KL PJ

-13

TN

HP

-15

Low poverty, declining fast

MH

UK AP

-17

Assam is home to a larger share of India’s poor relative to its population bubble size: number of poor (millions)

UP

20

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

BH

15

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

Stateshare share in poor, 20122012 (%) (%) State in India’s India’s poor,

25

MP

10

MH

JH

5

OD

HP

0

WB

RJ

CG GJ

AS

0

KA

HR KL UK PJ

5

TN

AP

10

15

20

State sharein inIndia’s India’s population, 20122012 (%) (%) State share population,

4

June 20, 2017

25

Interpreting the graph Share of poor > share of population

e ar Sh

or po of

e ar sh

of

n io at ul p po

=

Share of poor < share of population

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


Assam

Poverty, Growth & Inequality Consumption inequality is increasing in Assam, a lot more in urban areas Gini coefficient 0.4 0.35 0.31

0.3

0.28 0.25

0.2

0.20

0.22

0.22 0.18

0.19

0.1

0.0 Total

Rural

■ 1994

■ 2005

Urban

■ 2012

Consumption inequality in Assam is lower than in most other states Gini coefficient, 2012 0.4

0.3

0.2

0.1 KL DL KA MH AR TN AI HR WB MP CG UP

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

5

June 20, 2017

PJ

HP GA UK AP GJ MZ OD JK JH RJ AS TR NL BH SK MG MN


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