As per latest available data, one in every five Indians was poor in 2011 despite making remarkable progress in reducing absolute poverty since the 2000s.
India is among emerging economies in the South Asia where strong per capita growth rates are expected to help bring down poverty, the World Bank said. As per latest available data, one in every five Indians was poor in 2011 despite making remarkable progress in reducing absolute poverty since the 2000s.
“In South Asia, GDP per capita growth remains significantly above EMDE (Emerging Markets and Developing Economies) averages and will likely help a further reduction in poverty rates in coming years,” the World Bank said in its June edition of Global Economic Prospects: The Turning of the Tide? The World Bank noted that per capita income growth will particularly help reduction in poverty in India.
The per capita net national income of India in the financial year 2016-17 stood at Rs 1,03,870, witnessing a growth of over 10.3%. India’s initial poverty reduction was driven by robust economic growth, increase in rural wages and an increase in non-farm activity especially construction sector.
The World Bank projected that countries with the largest number of poor are expected to grow at a “somewhat faster clip in 2018-20. Renewed progress on poverty reduction will require a “sustained acceleration” in per capita income growth, the World Bank noted. “Structural reforms that increase productivity and support export diversification would be critical to these efforts,” it said.
Meanwhile, the World Bank projected India’s GDP growth to accelerate to 7.3% in FY19 and 7.5% on average in FY20, reflecting robust private consumption and firming investment. The overall growth in South Asia is forecast to pick up to 6.9% the current year 2018, mainly reflecting the fading effects of temporary factors that weakened activity in India. “Domestic demand is the key driver of growth in the region, although firming exports should provide additional support in 2018,” the report noted.