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West Bengal
Poverty, Growth & Inequality
West Bengal is India’s 4th most populous state in India with 91 million people, a fifth of who are
poor. Although poverty reduction in the state was faster after 2005, pockets of high poverty still
persist within the state. What’s more, after 2005, the state’s economic growth, which is driven
mainly by services, has been weak. So much so that West Bengal grew at an even slower pace than
Public Disclosure Authorized
the country’s other low income states. Furthermore, consumption inequality, which increased
marginally after 2005, is close to the national average.
40
40
37 37
35 34
33
Public Disclosure Authorized
32 32
30 29
22 22
21 20
20 19
17 17
15 15
12 12
11 11 11 10
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
Patna
0.6-5.2
4-9
5.3-13.2
9-20
13.3-17.2
20-26
N 17.3-22.6
26-31
22.7-62.8
31-38
Like many other states, poverty reduction in West Bengal was faster after 2005
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 GJ MG HR HP UK TR SK KL JK PJ GA NL DL MZ
There was faster poverty reduction in both rural and urban areas of West Bengal after 2005
Population below poverty line, (%)
60
50
42
Rural
40 Total 38
40
Urban 35
30
31
23
20 24
20
15
10
0
1994 2005 2012
-1 AS High poverty,
Since 2005, West Bengal’s growth has lagged behinddeclining
most other
slowly states in India, including the
Annual decline in poverty rate, 2005 - 2012 (%)
12 UP
-5 UK
11 MP
KA BH
(%) (%)
-7
10 Improving WB Leading All India
OD
- 2012
2005- 2012
-9 GJ
9 Data for 19 large states and All India.
TN
HR
Low Income States are highlighted in orange.
rate, 2005
8 -11 AP MH GJ
RJ MH
growthrate,
KL KL HR
7 PJ HP Interpreting the graph
-13
BH RJ TN
OD KA
growth
6 MP CGHP
5 UP
declining fast AP
high growth high growth
Annual
JH
4 -17
Lagging Weakening
AS
Lagging Weakening
3 Low income, High income,
low growth low growth
2
Standard of living, 2005
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
RealReal
GSDPGSDP per capita,
per capita, (2005
(2005 Rupees) Rupees)
All India
8 8 4.5
5.5 5.0 4.7
10 10
6 6
5.0 5.0
5.8
5.0
4 4
5 5 3.9
1.9
1.5
2 2 1.8
0.7 1.4 1.4 1.2
0 0 0.5 0.5 0.1
0 0
-0.4 -0.4 -0.4
20052006
2005 20062007
20072008
20082009
20092010
2010201120112012
2012
-1.5 -0.5
The pace of poverty reduction in West Bengal after 2005 was similar to the national average
Poverty rate, 2005
0 10 20 30 40 50 60 70 80
-1 AS High poverty,
(%)(%)
declining slowly
2012
-3
2005 --2012
JH CG
UP
rate,2005
-5
MP
rate,
KA BH
-7
WB All India
in poverty
OD
in poverty
-11 MH
RJ
decline
KL
Annual
PJ
-13 TN
HP
Annual
UK
-15 Low poverty,
declining fast AP
-17
UP
(%) (%)
20
20122012
poor,
10 MP
Stateshare
KA WB e
JH ar
5 sh
CG RJ
or
=
po
AS GJ AP of
TN ar
e Share of poor < share
HR Sh of population
KL
UK PJ
0
HP What % of India’s population lives in this state?
0 5 10 15 20 25
State share
State sharein
inIndia’s population,
India’s population, 20122012
(%) (%)
0.33
0.32
0.31
0.3
0.27
0.26
0.24 0.24
0.2
0.1
0.0
Total Rural Urban
0.3
0.2
0.1
KL DL KA MH AR TN AI HR WB MP CG UP PJ HP GA UK AP GJ MZ OD JK JH RJ AS TR NL BH SK MG MN