The International Monetary Fund (IMF) previously stated in a working paper that the Pradhan Mantri Garib Kalyan Yojana (PMGKAY), which gives free foodgrains to the poor, played a major role in maintaining severe poverty in India at 0.8% during the pandemic-hit year of 2020.
Digital Desk: World Bank working paper co-authored by economists Sutirtha Sinha Roy and Roy van der Weide stated that India's extreme poverty decreased by 12.3% between 2011 and 2019, with rural areas performing better than urban areas.
The paper stresses that India has not produced a new household consumption survey since the NSS in 2011.
"We find that extreme poverty in India has decreased by 12.3 percentage points between 2011 and 2019, but at a far slower rate than between 2004 and 2011. Rural poverty reduction rates are higher than urban poverty reduction rates, ' according to a paper titled 'Poverty in India Has Declined Over the Last Decade But Not As Much As Previously Thought.'
According to the authors, urban poverty increased by 2 percent in 2016 during the demonetization episode before drastically declining later. The study also stated that rural poverty increased by 10 basis points in 2019, owing to a slowing of growth.
"Based on national accounts consumption growth and other survey data, Our latest poverty estimates are more conservative than earlier projections," the paper stated.
According to the World Bank paper, the level of poverty reduction between 2015 and 2019 is expected to be significantly lower than earlier forecasts based on growth in private final consumption spending reported in national account statistics.
The authors said that their analysis found no evidence of increased consumer inequality. The paper noted that the Farmers with small landholdings had seen higher income growth.
Between the two survey rounds, real incomes for farmers with the lowest landholdings increased by 10% in annualized terms, compared to 2% for farmers with the highest landholdings, it added.
It added that rural households with smaller plots of land are more likely to be poor.
The International Monetary Fund (IMF) previously stated in a working paper that the Pradhan Mantri Garib Kalyan Yojana (PMGKAY), which gives free foodgrains to the poor, played a major role in maintaining severe poverty in India at 0.8% during the pandemic-hit year of 2020.
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