Public Disclosure Authorized

Punjab
Poverty, Growth & Inequality
With poor people making up less than a tenth of its population, Punjab is one of India’s richest
states. After 2005, poverty reduction in the state was among the fastest in the country. In spite
of this, Punjab’s western and central districts record higher levels of poverty than its other
regions. Since 2005, however, the state’s growth has fallen below the national average. And,
Public Disclosure Authorized

off late, services have contributed more to growth than manufacturing. Surprisingly, after 2005,
consumption inequality in Punjab has decreased, albeit only slightly.

Poverty in Punjab is among the lowest in the country

Population below poverty line, 2012 (%)
50

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

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

Public Disclosure Authorized

There is higher poverty in the central and western parts of Punjab than the rest of the state
District level poverty, 2012
Patna

Population below the poverty line,

2012 (%)

0.6-5.2
3-5
5.3-13.2
5-7
13.3-17.2
7-9
N 17.3-22.6
9-11
22.7-62.8
11-18

1 June 20, 2017

3−5
Punjab
Poverty, Growth & Inequality

Like many states in India, poverty reduction in Punjab 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

● 1994 ● 2005 ● 2012

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

Poverty reduced in both rural and urban areas in Punjab after 2005
Population below poverty line, (%)
30
27
Urban

22 22
Total
20 Rural 21
20
19

10 9

8
8

0
1994 2005 2012

2 June 20, 2017

Punjab
Poverty, Growth & Inequality
0 10 20 30 40 50 60 70 80

-1 AS High poverty,
declining slowly
Annual decline in poverty rate, 2005 - 2012 (%)
Growth in Punjab has been
-3 lower than the national average after 2005
JH CG

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

Improvement from 2005 to 2012

UK PJ
Improving Leading
-15 Low poverty,
WB Low income, High income,
Annual

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

Since 2009, services have been contributing more to Punjab’s growth than manufacturing
Annual growth rate, (%) Components of GSDP growth rate, (%)
15 15 12 12

10 10
3.7
3.2
10 10 8 8

6 6 5.6 3.7 4.2 5.4

2.8 4.8 4.0
1.9
5 5
4 4
3.5
2.8
2 2 2.6 1.9
1.3
0.7
0 0 0.3 0.9 1.1 0.6 0.4 0.4
20052006
2005 20062007
20072008
20082009
2009201020102011201120122012 0 0
-0.4 -0.1

■ Punjab GSDP ■ All India GDP -2 -2

20052006
2005 20062007
20072008
20082009
2009201020102011201120122012

■ Services ■ Industry ■ Agriculture

3 June 20, 2017

Punjab
Poverty, Growth & Inequality

Poverty reduction in Punjab after 2005 has been faster than in most states
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

-9 GJ Data for 19 large states and All India.

Low Income States are highlighted in orange.
HR
decline

-11 MH
RJ
decline

KL
Annual

PJ
-13 TN

HP
Annual

UK
-15 Low poverty,
declining fast AP

-17

A very small share of India’s poor live in Punjab

bubble size: number of poor (millions)
25

UP
(%) (%)

20
20122012
poor,

BH Data for 19 large states and All India.

poor,

15 Low Income States are highlighted in yellow.

India’s
in India’s

Interpreting the graph

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

10 MP
Stateshare

MH Share of poor > share io

n
at
of population pul
po
OD of
State

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
(%) (%)

4 June 20, 2017

Punjab
Poverty, Growth & Inequality

Slight reduction in consumption inequality in Punjab after 2005

Gini coefficient
0.4

0.34
0.32
0.31
0.30
0.3 0.29
0.28
0.26
0.25
0.24

0.2

0.1

0.0
Total Rural Urban

■ 1994 ■ 2005 ■ 2012

Consumption inequality in Punjab is just below the national average

Gini coefficient, 2012
0.4

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

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

5 June 20, 2017