India halved its poverty rate since the 1990s: World Bank report

Topics World Bank  | poverty

World Bank

India has halved its poverty rate since the 1990s and achieved a seven plus growth rate over the last 15 years, the World Bank said on Tuesday.

India is both critical to the success of global development efforts, including eliminating extreme poverty, and as an influential leader for global goods such as addressing climate change, the bank said ahead of the annual meeting between it and the International Monetary Fund.

The country has achieved annual growth exceeding seven per cent over the last 15 years, halved its poverty rate since the 1990s, and enjoyed strong improvements in most human development outcomes, the World Bank said.

Noting that India's growth is expected to continue and elimination of extreme poverty in the decade is within reach, it said at the same time, the country's development trajectory nonetheless faces considerable challenges.

For this, the World Bank said, India will need to achieve greater resource efficiency as it sustains growth, given its resource endowments and large population.

Land will need to be used more productively in urban areas by the spatial transformation of cities achieving agglomeration economies and in rural areas by increased agricultural productivity, it said.

India's water management will need to provide for shifting water allocation to higher-value uses and policies to increase the value of water use within sectors. In addition, 230 million people are not properly connected to the electricity grid while generation will need to be less carbon intensive, the World Bank pointed out.

More generally, India's rapidly growing economy needs investment in infrastructure, an estimated 8.8 percent of GDP or $343 billion a year until 2030, it said.

Second, sustained growth will also need to accelerate inclusion, especially to create more and better jobs. While an estimated 13 million people enter the working age population each year, only three million new jobs are being generated on an annual basis, the financial institution said.

The World Bank said a particular challenge lies in India's declining female labour force participation, which at 27 percent is among the lowest in the world despite overcoming gender gaps in education.

Finally, India's public sector institutions will need to be modernised to deliver services and regulations that match the aspirations of a middle income country; this will entail improving accountability and effectiveness, improving the ability of the state to interface with the private sector, and strengthening the compact among tiers of government to improve service delivery, the bank said.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel