Rising poverty post COVID-19

Poverty levels in India and China

A new study by the Pew Research Center estimates that the COVID-19 pandemic has had a disproportionately deleterious impact on living standards in India and China in 2020, with the sharp economic contraction in the former pushing as many as 7.5 crore people into the ranks of the poor (those who earn $2 or less a day).
In contrast, the figure is about 10 lakh in China, whose economy slowed but continued to post growth.
In absolute terms, the number of poor in India is posited to have swelled to 13.4 crore, reversing the gains made in the preceding nine years when the country cut the number of poor by more than three-fourths to an estimated 7.8 crore in 2019.
In China, the population of the poor likely inched up to 40 lakh, matching the 2019 level.

Contraction of middle class

Similarly, the numbers of India’s middle class — those with a daily income of $10.01–$20 — are projected to have shrunk by 3.2 crore to about 6.6 crore, compared with the number this income cohort would have reached absent the pandemic.
Here again, China likely experienced just one-third the level of contraction, with the population of those deemed as middle income set to have narrowed to 49.3 crore compared with the pre-pandemic projection of 50.4 crore.

Pew assessment

The Pew assessment, which is based on an analysis of the World Bank’s PovcalNet database, does, however, acknowledge the multiple assumptions that inform the study.
These include varying base years for income/consumption figures — with India’s from 2011 and 2016 for China.
Still, the study serves as a stark reminder of the economic disparities, both within India and at a comparative level with its northern neighbour.
The latest report once again spotlights the widening inequality in India, exacerbated by the pandemic, as the lower income populations have disproportionately borne the brunt of job and income losses in the wake of the multiple lockdowns.

Conclusion

The National Rural Employment Guarantee scheme has been seeing record levels of demand is testimony to the struggles those in the rural hinterland have been facing in finding gainful employment since the onset of the pandemic.

Source: TH

Join Our Telegram

Yemen Crisis: Saudi presented a peace initiative

Vehicle scrappage policy

Ministry of Minority Affairs-Year review

15 Jan, 24
SHARE

The Ministry was carved out of Ministry of Social Justice & Empowerment in 2006. Objective- To ensure a more focused approach towards issues relating to the notified minority communities - Muslim, Christian, Buddhist, Sikhs, Parsis and Jain. As per Census 2011, around 19.3% of the population belongs to minorities. Mandate- To f

Indian Railways in 2023 – Year Review

15 Jan, 24
SHARE

The Performance of Indian Railways in 2023 showed significant strides in infrastructure but reveals underwhelming freight loading and financial performance. How Indian Railways performed in 2023? Near completion of DFC – Dedicated Freight Corridors are nearing completion with more than 200 freight trains already runnin

Global Nuclear Order and Geopolitics

14 Jan, 24
SHARE

The Global Nuclear Order refers to the international system, agreements, norms, and structures that govern and regulate the use, possession, proliferation, and control of nuclear weapons and nuclear energy worldwide. It encompasses a complex network of treaties, agreements, and norms that have evolved over time to manage the risks associated wit

Supreme Court Judgments in 2023

14 Jan, 24
SHARE

The Supreme Court has delivered several landmark judgments in 2023. S.No Name of the Case Judgement 1 Vivek Narayan Sharma v. Union of India Upheld the decision taken by the Union Government to demonetise currency notes of Rs. 500 and Rs.10

Ministry of Health and Family Welfare – YEAR REVIEW

13 Jan, 24
SHARE

The Ministry is charged with health policy in India, which is also responsible for all government programs relating to family planning in India. Departments Department of Health and Family Welfare Department of Health Research Union Minister- Mansukh L. Mandaviya Health Missions National Health Mission (NHM) &