World Bank Documentdocuments.worldbank.org/curated/en/380971504177733539/pdf/119267-BRI-P... ·...

Tamil NaduPoverty, Growth & Inequality

1 June 20, 2017

Tamil Nadu is one of India’s richest states. Since 1994, the state has seen a steady decline in poverty, with the result that today, Tamil Nadu has lower levels of poverty than most other states in the country. Nevertheless, parts of the state still record high levels of poverty. After 2005, Tamil Nadu was among India’s fastest growing states, with growth being driven mainly by services. Although consumption inequality in the state decreased slightly after 2005, it still remains higher than in many other states.

Poverty in Tamil Nadu is lower than in many Indian states

GAHPKLPJSKAPDLJKHRUKTNMGRJTRGJMHNLWBKAMZAIUPMPASODBHARMNJHCG

0

10

20

30

40

50

Parts of Tamil Nadu have high poverty

Population below poverty line, 2012 (%)

District level poverty, 2012

1 − 1010 − 1818 − 2424 − 3535 − 51No data

N

0.6-5.25.3-13.213.3-17.217.3-22.622.7-62.8

Patna

Population below the poverty line, 2012 (%)

0-44-66-1010-1717-54No data

4037 37

35 34 33 32 3229

22 22 21 20 1917 17

15 1512 12 11 11 11 10 9 9 8 8 8

5

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

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2 June 20, 2017

Since 1994, there has been a steady decline in poverty in Tamil Nadu

Poverty has declined steadily in both rural and urban areas of Tamil Nadu after 1994

0

10

20

30

40

50

60

70

MZDLNLGAPJJKKLSKTRUKHPHRMGGJRJWBMPAPTNAIUPMHKACGASARODBHJHMN

Population below poverty line, (%)

Population below poverty line, (%)

Rural

Total

Urban

1994 2005 2012

0

10

20

30

50

40

60


● 1994 ● 2005 ● 2012

51

34

38

20 16

7

45

31

12


3 June 20, 2017

0

5

10

15

20

-2

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009 2010 2011 2012

2005 2006 2007 2008 2009 2010 2011 2012

Services drive Tamil Nadu’s economic growth

0

5

10

15

20

-2

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009 2010 2011 2012

2005 2006 2007 2008 2009 2010 2011 2012

Growth in Tamil Nadu has been among the fastest in India after 2005

AP

AS

BH

GJ

HR HP

KA

KL

MP

MH

OD

PJ

RJ

TN

UP WB

JH

CG

UK

Leading

Lagging

Improving

Weakening

2

3

4

5

6

7

8

9

10

11

12

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

An

nu

al g

row

th r

ate,

20

05

- 20

12 (%

)

Real GSDP per capita, (2005 Rupees) All India

ImprovingLow income, high growth

LeadingHigh income, high growth

LaggingLow income, low growth

WeakeningHigh income, low growth

Impr

ovem

ent f

rom

200

5 to

201

2

Standard of living, 2005

Interpreting the graph

Annu

al g

row

th ra

te, 2

005

- 201

2 (%

)

Real GSDP per capita, (2005 Rupees)

High poverty, declining slowly

Low poverty, declining fast

-17

-15

-13

-11

-9

-7

-5

-3

-1

0 10 20 30 40 50 60 70 80

An

nu

al d

ecli

ne

in p

over

ty r

ate,

20

05

- 20

12 (%

)

All India

AP

AS

BH

GJ

HR

HP

KA

KL

MP

MH

OD

PJ

RJ

TN

UP

WB

JH CG

UK

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

Annual growth rate, (%) Components of GSDP growth rate, (%)

■ Tamil Nadu GSDP ■ All India GDP

5.8

5.2

0.5

8.0

4.5

1.5

9.5

4.3

1.5

5.4

1.2-0.5

6.3

-0.6-0.2

4.3

0.6

5.9

7.7

4.7

0.6

5.3

0.81.3

■ Services ■ Industry ■ Agriculture


4 June 20, 2017

Poverty reduction in Tamil Nadu has been faster than in many other states after 2005

Tamil Nadu has a smaller share of India’s poor relative to its population

Poverty rate, 2005

bubble size: number of poor (millions)

0

5

10

15

20

25

0 5 10 15 20 25

Stat

e sh

are

in In

dia

’s p

oor,

20

12 (%

)

State share in India’s population, 2012 (%)

AP AS

BH

GJ

HR

KA

KL

MP

MH

OD

PJ

RJ

TN

UP

WB JH

CG

UK HP

High poverty, declining slowly

Low poverty, declining fast

-17

-15

-13

-11

-9

-7

-5

-3

-1

0 10 20 30 40 50 60 70 80

An

nu

al d

ecli

ne

in p

over

ty r

ate,

20

05

- 20

12 (%

)

All India

AP

AS

BH

GJ

HR

HP

KA

KL

MP

MH

OD

PJ

RJ

TN

UP

WB

JH CG

UK

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

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

Annu

al d

eclin

e in

pov

erty

rate

, 200

5 - 2

012

(%)

Stat

e sh

are

in In

dia’

s po

or, 2

012

(%)

State share in India’s population, 2012 (%)

Wha

t % o

f Ind

ia’s

poor

live

s in

this

sta

te?

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

Interpreting the graph

Share of poor > share of population

Share of poor < share of populationShare of p

oor = share of p

opulation


5 June 20, 2017

UrbanRuralTotal0.0

0.1

0.2

0.3

0.4

Gini coefficient

Consumption inequality in Tamil Nadu decreased marginally after 2005

Consumption inequality in Tamil Nadu is higher than the national average

Gini coefficient, 2012

MNMGSKBHNLTRASRJJHJKODMZGJAPUKGAHPPJUPCGMPWBHRAITNARMHKADLKL

0.1

0.2

0.3

0.4


0.31

0.28

0.330.33

0.28

0.340.34

0.28

0.36

■ 1994 ■ 2005 ■ 2012

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