Skip to main content

World Bank's full marks to UPA? Poverty rates "sharply reduced" in 2005-12

By Rajiv Shah
A new World Bank study, released ahead of Prime Minister Narendra Modi completing two years in office, has said that the India’s national poverty rates fell much more sharply between 2005 and 2012, when the UPA government ruled the country, compared the decade between 1994 and 2005.
The study, carried out by Ambar Narayan and Rinku Murgai, and circulated as a policy research paper, says that poverty rates “decreased from 45 to 37 percent of the population between 1994 and 2005”, and “fell a further 15 percentage points in the next seven years, with similar patterns seen in both rural and urban areas”.
“This was a three‐fold increase in pace, as the country reduced poverty by 2.2 percentage points per year during 2005‐12, relative to the 0.7 percentage point per year decline between 1994 and 2005”, the World Bank study, titled “Looking Back on Two Decades of Poverty and Well-Being in India”, says.
Even during the period between 2005 and 2012, the study says, there were “two distinct phases: a moderate rate of poverty reduction till 2010 (which was still more than twice the rate of change seen between 1994 and 2005), followed by sharp and unprecedented reduction between 2010 and 2012.”
The study underlines, “Some of this volatility needs to be seen in the context of 2009‐10 being a year of particularly severe droughts, which is likely to have dampened the gains between 2005 and 2010 and conversely, accentuated the apparent progress from 2010 to 2012 as the economy rebounded to its ‘trend’ performance.”
In absolute numbers, the study, while accounting for the rise in population, says that the number of poor people remained “stubbornly high” at over 400 million in the eleven years between 1994 and 2005. However, in the next seven years, 137 million people (roughly 20 million per year) escaped poverty”, with 270 million people living in poverty in 2012.
“Poverty reduction in India was fueled by rising consumption levels, while consumption inequality remained more or less stable since 2005”, the study says, adding, “Consumption inequality measured by the Gini coefficient, after rising appreciably between 1994 and 2005, has remained almost unchanged in both rural and urban areas since then.”
“Consumption growth of the bottom 40% averaged an anemic 0.8 percent per year between 1994 and 2005, and increased four‐fold to 3.3 percent per year between 2005 and 2012, averaging more than 5 percent annually during the last two years of this period”, the study says.
“With upward mobility, the middle class has expanded sharply and is the fastest growing group between 2005 and 2012”, the study says, adding, “The middle class increased from 23 percent to 34 percent of the population.”
Coming to “non‐monetary dimensions of welfare”, the study says, “Between 2005 and 2012, significant improvements occurred in infant and child (under age 5) mortality rates, literacy rate among working adults, and the share of children under age 5 who are not underweight.”
“The decline in illiteracy among adults – from 38 percent in 2005 to 30 percent in 2012 – is matched by a 9 percent increase in the share of adults who have completed secondary education or more during this period”, the study says.
It adds, “This indicates a positive trend of skilling of the Indian labour force as secondary school enrollments and completion have increased over the years. This trend could also have an impact in terms of reducing vulnerability.”
However, it regrets, “Progress in access to piped water, sanitation and reducing stunting among children under age 5 has been much slower.”
---
Download study HERE

Comments

TRENDING

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan  The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

From water scarcity to sustainable livelihoods: The turnaround of Salaiya Maaf

By Bharat Dogra   We were sitting at a central place in Salaiya Maaf village, located in Mahoba district of Uttar Pradesh, for a group discussion when an elderly woman said in an emotional voice, “It is so good that you people came. Land on which nothing grew can now produce good crops.”

'Big blow to crores of farmers’: Opposition mounts against US–India trade deal

By A Representative   Farmers’ organisations and political groups have sharply criticised the emerging contours of the US–India trade agreement, warning that it could severely undermine Indian agriculture, depress farm incomes and open the doors to genetically modified (GM) food imports in violation of domestic regulatory safeguards.

When free trade meets unequal fields: The India–US agriculture question

By Vikas Meshram   The proposed trade agreement between India and the United States has triggered intense debate across the country. This agreement is not merely an attempt to expand bilateral trade; it is directly linked to Indian agriculture, the rural economy, democratic processes, and global geopolitics. Free trade agreements (FTAs) may appear attractive on the surface, but the political economy and social consequences behind them are often unequal and controversial. Once again, a fundamental question has surfaced: who will benefit from this agreement, and who will pay its price?

Why Russian oil has emerged as the flashpoint in India–US trade talks

By N.S. Venkataraman*  In recent years, India has entered into trade agreements with several countries, the latest being agreements with the European Union and the United States. While the India–EU trade agreement has been widely viewed in India as mutually beneficial and balanced, the trade agreement with the United States has generated comparatively greater debate and scrutiny.

Trade pacts with EU, US raise alarms over farmers, MSMEs and policy space

By A Representative   A broad coalition of farmers’ organisations, trade unions, traders, public health advocates and environmental groups has raised serious concerns over India’s recently concluded trade agreements with the European Union and the United States, warning that the deals could have far-reaching implications for livelihoods, policy autonomy and the country’s long-term development trajectory. In a public statement issued, the Forum for Trade Justice described the two agreements as marking a “tectonic shift” in India’s trade policy and cautioned that the projected gains in exports may come at a significant social and economic cost.

From Puri to the State: How Odisha turned the dream of drinkable tap water into policy

By Hans Harelimana Hirwa, Mansee Bal Bhargava   Drinking water directly from the tap is generally associated with developed countries where it is considered safe and potable. Only about 50 countries around the world offer drinkable tap water, with the majority located in Europe and North America, and a few in Asia and Oceania. Iceland, Switzerland, Finland, Germany, and Singapore have the highest-quality tap water, followed by Canada, New Zealand, Japan, the USA, Australia, the UK, Costa Rica, and Chile.

Michael Parenti: Scholar known for critiques of capitalism and U.S. foreign policy

By Harsh Thakor*  Michael Parenti, an American political scientist, historian, and author known for his Marxist and anti-imperialist perspectives, died on January 24 at the age of 92. Over several decades, Parenti wrote and lectured extensively on issues of capitalism, imperialism, democracy, media, and U.S. foreign policy. His work consistently challenged dominant political and economic narratives, particularly those associated with Western liberal democracies and global capitalism.