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“Pew Research study” Reports increasing Poverty in India

What is the News?

A recent Pew research study report reveals increasing poverty in India. As per the report, the pandemic has pushed approximately 3.2 crore Indians out of the middle class.

Who has released the report?
  • Released by: The US-based Pew Research Center.
  • It uses World Bank projections of economic growth to estimate the impact of COVID-19 on incomes.
  • The report divides the population of a country into five groups, on the basis of the daily earning of an individual:
    1. Poor: $2 or less daily
    2. Low income: $2.01-$10
    3. Middle income: $10.01-$20
    4. Upper middle income: $20.01-$50 and
    5. High income: more than $50.
Key findings of the report related to India:
  • Middle Income Group: The number of Indians in the middle-income group has reduced by 3.2 crores due to the 2020s pandemic-driven recession.
  • Poor People: The number of Poor people in India increased by 7.5 crores. This accounts for nearly 60% of the global increase in poverty.
    • Hence, the number of poor in India is projected to have reached 134 million (13.4 crores). It is more than double the 59 million (5.9 crores) expected prior to the recession.
  • Richer Population: The richer population who earn more than ₹1,500 a day also fell almost 30% to 1.8 crore people.
Other key Findings:
  • Firstly, the number of ‘global poor’ is estimated to have increased to 803 million in 2020. It is a significant increase from 672 million, the pre-pandemic prediction.
  • Secondly, South Asia saw the greatest reduction in the middle class and the largest ‘expansion’ in poverty in 2020. This could be attributed to South Asia experiencing a sharp decrease in economic growth during the pandemic.
  • However, China managed to avoid a contraction although growth slowed. Further, the Chinese incomes remained relatively stable with just a 2% drop in the middle-class population.

Source: The Hindu

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