Madhya Pradesh
Poverty, Growth & Inequality
Madhya Pradesh is the 5th most populous state in India and home to 73 million people. Poverty
in Madhya Pradesh was similar to the national average in 1994, but since then poverty reduction
has lagged the rest of the country. Consumption inequality has increased marginally during this
period. The state today has high levels of poverty, especially in the eastern and southern districts,
and is home to 24 million poor. Growth is lower than in other states, and is driven mainly by
industry and services.
Poverty in Madhya Pradesh is among the highest in the country
Population below poverty line, 2012 (%)
50
40
40
37 37
35 34
33 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.
Eastern and southern districts of Madhya Pradesh have very high poverty
District level poverty, 2012
★ Bhopal
Patna
Population below the poverty line,
2012 (%)
4-15
0.6-5.2
15-25
5.3-13.2
25-38
13.3-17.2
N 38-49
17.3-22.6
49-77
22.7-62.8
N
1 May 20, 2016
Madhya Pradesh
Poverty, Growth & Inequality
Poverty reduction in Madhya Pradesh has lagged the rest of the country
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 in Madhya Pradesh increased during 1994-2005, but has declined steadily since then
Population below poverty line, (%)
70
60
54
49
50 Rural
Total 49
45
40
36
Urban 35
30
32 32
20
21
10
0
1994 2005 2012
2 May 20, 2016
Madhya Pradesh
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 Madhya Pradesh
-3 has lagged other states
JH CG
12 UP
-5 UK
11 MP
KA BH
(%) (%)
-7
10 Improving WB Leading All India
OD
- 2012
- 2012
-9 GJ
9 Data for 19 large states and All India.
TN
Low Income States are highlighted in orange.
2005
HR
rate, 2005
8 -11 AP MH GJ
RJ MH
rate,
KL KL HR
7 PJ HP Interpreting the graph
-13
BH RJ TN
growth
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
Real
Real GSDP
GSDP per capita,
per capita, (2005
(2005 Rupees) Rupees)
All India
Madhya Pradesh’s growth is driven by industry and services
Annual growth rate, (%) Components of GSDP growth rate, (%)
15 15 15 15
12 12
4.7
10 10
9 9
4.1 5.3
3.9
5.5
6 6 4.2
5 5 2.1 4.5 3.4
4.2 2.1 1.6
3 3 1.3 3.0
1.9 2.2 2.1 2.1
1.7
0 0 0.3 0.7 0.1
0 0
2005 2006
2005 2007
2006 2008
2007 2009
2008 2010
2009 2011
2010 2012
2011 2012 -1.4 -0.4
-5 -5
■ Madhya Pradesh GSDP ■ All India GDP 20052006
2005 20062007
20072008
20082009 20102011
20092010 20112012
2012
■ Services ■ Industry ■ Agriculture
3 May 20, 2016
Madhya Pradesh
Poverty, Growth & Inequality
Poverty reduction in Madhya Pradesh slower than in other 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
Madhya Pradesh is among the Low Income States where a disproportionate share of India’s poor live
bubble size: number of poor (millions)
25
UP
(%) (%)
20
2012
2012
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
share
MH Share of poor > share io
n
at
of population pul
po
State
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 in
share inIndia’s population,
India’s population, 2012
(%) (%)
2012
4 May 20, 2016
Madhya Pradesh
Poverty, Growth & Inequality
Consumption inequality has increased marginally in Madhya Pradesh, mainly in urban areas
Gini coefficient
0.4
0.37 0.37
0.31
0.30 0.30
0.3 0.28
0.27 0.27
0.25
0.2
0.1
0.0
Total Rural Urban
■ 1994 ■ 2005 ■ 2012
Madhya Pradesh’s consumption inequality is higher than other Low Income states but 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 May 20, 2016