Maharashtra
Poverty, Growth & Inequality
Maharashtra is India’s second most populous state and home to 20 million poor. Poverty declined
more rapidly in the state after 2005. As a result, today, poverty levels in Maharashtra are lower than
the national average. Yet, districts in the state’s northern and eastern regions continue to display a
high incidence of poverty. Since 2005, Maharashtra’s economic growth has been above the national
average, supported mainly by services. During this period, consumption inequality in the state —
which was already among the highest in the country - increased slightly, albeit mainly in urban areas.
Poverty in Maharashtra is below the national average
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.
Districts in the north and east of Maharashtra have high poverty
District level poverty, 2012
Patna
Population below the poverty line,
2012 (%)
0.6-5.2
0-10
5.3-13.2
10-18
13.3-17.2
18-24
N 17.3-22.6
24-35
22.7-62.8
35-51
No data
1 June 20, 2017
1 − 10
10 − 18
18 − 24
24 − 35
Maharashtra
Poverty, Growth & Inequality
Like many states in India the pace of poverty reduction in Maharashtra 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.
After 2005, poverty declined more rapidly in both rural and urban areas of Maharashtra
Population below poverty line, (%)
70
59
60 Rural
50 48
Total
48
40
39
30 Urban
30 24
26
20
17
10
9
0
1994 2005 2012
2 June 20, 2017
Maharashtra
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 Maharashtra was
-3 faster than in many other
JH
states after 2005
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
Growth in Maharashtra is driven by services, industry adds to its volatility
Annual growth rate, (%) Components of GSDP growth rate, (%)
15 15 16 16
14 14
6.7 7.2
12 12
7.1
10 10 6.1 5.5
10 10
8 7.1
8
6 6 5.6 4.9
5 5 4.1
4 4 5.1 3.7 4.7
4.6
2 2
2.1
1.0 1.5 1.4 0.1 1.7
0 0 0.1
0 0 -0.3 -0.2
2005 2006
2005 2007
2006 2008
2007 2009
2008 2010
2009 2011
2010 2012
2011 2012 -2 -2 -1.7
-3.5
■ Maharashtra GSDP ■ All India GDP -4 -4
20052006
2005 20062007
20072008
20082009
20092010
2010201120112012
2012
■ Services ■ Industry ■ Agriculture
3 June 20, 2017
Maharashtra
Poverty, Growth & Inequality
Poverty reduction in Maharashtra was faster than the national average after 2005
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 significant share of India’s poor live in Maharashtra
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 June 20, 2017
Maharashtra
Poverty, Growth & Inequality
Consumption inequality has increased marginally in Maharashtra, mainly in urban areas
Gini coefficient
0.4
0.37 0.37
0.35 0.35
0.33
0.32
0.3 0.29
0.27
0.26
0.2
0.1
0.0
Total Rural Urban
■ 1994 ■ 2005 ■ 2012
Consumption inequality in Maharashtra is among the highest in the country
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