Most assume, almost as a matter of routine, that poverty and inequality are two sides of the same coin. So, those bemoaning the rising inequality in the country (though the evidence on this is mixed) assume it to mean poverty levels are also rising. This is not true, however, and by whatever measure used, poverty levels are definitely falling. At the state level, the picture is even more interesting. A recent report on the Indian economy by investment firm Lehman Brothers brings this out quite evocatively since it gives state-level Ginis. Bihar, which has among the highest poverty levels in the country, it appears, has the lowest Gini; Punjab, which has the lowest poverty levels in the country has a higher Gini than neighbouring states like Haryana; Orissa has the highest number of poor but has a middling Gini.
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