Why Some Indian States Have Emerged As Poorest Than Others? A Look At NITI Aayog's Report

Bihar, Jharkhand, and Uttar Pradesh have emerged as the states having the maximum number of poor and malnourished people in India, in the first Multidimensional Poverty Index (MPI) released by NITI Aayog.

The report is developed based on the National Family Health Survey 2015-16.

Bihar accounts for the highest share of the population living below the poverty line with 52 per cent. Jharkhand stood at second place with 42.16 per cent of poor people, Uttar Pradesh at third with 36.65 per cent population.

Kerala, Goa, and Sikkim have emerged as the top three states having the least number of people under the poverty line, with 0.71 per cent, 3.76 per cent, 3.82 respectively.

The policy think tank assessed the states and their districts on 12 indices, including nutrition, infant and adolescent mortality, availability of antenatal health care, years of education, school attendance, sanitation, drinking water, electricity, house, property, and bank accounts.

The names of the states with the maximum number of poor people do not come as a surprise, as they have been economically strangulated for a long time. The states were stood worst in various indices.

Health & Nutrition

Around 51-91 per cent people in Bihar are deprived of nutrition, with the Krishanganj district having the maximum number of people (64.75 per cent). The headcount ratio of the state (population proportion that exists, or lives, below the poverty threshold) stood at 51.91 per cent, and the intensity (average proportion of deprivations experienced by poor people) was 51.02 percent.

Kerala had 15.3 per cent people deprived of nutrition, with Wayanad district having the maximum number of people (3.48 per cent). The headcount ratio of the state (population proportion that exists, or lives, below the poverty threshold) stood at 0.71 per cent, and the intensity (average proportion of deprivations experienced by poor people) was 39.02 per cent.

Standard of Living

Nearly 73,6 per cent of people were deprived of proper sanitation facilities, and 73.7 per cent were without housing facilities in Bihar. Whereas only 1.9 per cent of people in Kerala did not have adequate sanitation facilities, and 10.8 per cent were without housing facilities in Bihar.

The essential factor is that the states with the least number of poor people, especially Kerala, have spent the maximum on health and family welfare, with a budget higher than the average allocation, compared to Bihar, Jharkhand, and Madhya Pradesh.

In agriculture, social security, roads and bridges, and the welfare minority communities, the states have spent close to equal to the average budget allocation.

The allocation of f-unds by the central government also remains challenging for several states, as they would need at least twice what the other states get, given their population and the fulfilment of various sectors.

Gross State Domestic Product (GSDP) 2021-22

Bihar's GDP for 2021-22 is estimated to be Rs 7,57,026 crore, while Kerala's estimated GSDP is Rs 8,76,283 crore.

Although there is an increase of 11 per cent in Bihar over the GSDP in 2019-20, compared to Kerala with a 1 per cent increase, the former's annual growth rate remains less than the latter, which has further taken a toll on the average income of the people and scrunch in job opportunities.

According to the Periodic Labour Force Survey (2018-19), the unemployment rate among all age groups in Bihar was 10.2 per cent, higher than that of Kerala with 9 per cent.

Also Read: Rajasthan: Stones Hurled At Dalit Groom For Riding Mare Despite Police Protection, 10 Arrested