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India’s Poverty Decline After 2011-12: Paper Shows Slowdown

23 May 20251 min read
REPORTS & INDEXESIndia’s PovertyDecline After2011-12: PaperShows Slowdown23 May 2025safalsetu.com

Why in the news

A paper by Himanshu (JNU), Peter Lanjouw and Philipp Schirmer (Vrije University, Amsterdam) says poverty reduction lost pace after 2011-12.

Trend

YearPoverty
2004-0537%
2011-1222%
2022-2318%
  • Number of poor: only 250 million to 225 million.

Methods

  • Alternative NSSO extrapolations (UMPCE): 26-30% in 2019-20.
  • PFCE scaling (Surjit Bhalla and others, 2022).
  • Survey-to-survey imputation: the approach of this paper, the World Bank and CMIE studies.

States

  • Uttar Pradesh: strong progress.
  • Jharkhand, Bihar: slow.
  • Maharashtra, Andhra Pradesh: stagnant.

Indicators

Measure2004-122012-23
GDP growth6.9%5.7%
Real rural wage growth4.13%2.3%
  • 68 million workers shifted into agriculture after 2017-18, a sign of weak productivity and wages.

Policy

  • Transparent data is essential; urgent action needed.

Exam angle

  • Last official poverty year: 2011-12.

Test yourself

1. As per the paper on poverty after 2011-12, what was India's poverty level in 2011-12?

Poverty was 22% in 2011-12, down from 37% in 2004-05.

2. Which estimation approach does the paper by Himanshu, Lanjouw and Schirmer use?

It uses survey-to-survey imputation, as do the World Bank and CMIE-based studies.

3. According to the paper, about how many workers were added to agriculture after 2017-18?

About 68 million workers moved into agriculture.