Bimarou states shedding the poverty tag

In 2004-05, for all Bimarou states, except Rajasthan, more than 40% of the people were below the poverty line

Poverty rates in Bimarou states - Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh - fell sharply in the seven years ended 2011-12. In all these states, excluding Uttar Pradesh, the rate of decline in poverty levels was more than the national average. Across the country, poverty declined 15 percentage points - from 37.2 per cent in 2004-05 to 21.9 per cent in 2011-12.

In 2004-05, for all Bimarou states, except Rajasthan, more than 40 per cent of the people were below the poverty line (BPL); in all these states, BPL people accounted for less than 35 per cent of the population in 2011-12.

The most significant improvement was seen in the case of Odisha, which had the highest proportion of poor (57 per cent) in 2004-05 among all states. In 2011-12, the proportion fell 24 percentage points to 32.6 per cent. The proportion of BPL people in rural areas was the highest in Odisha and Madhya Pradesh.

In Madhya Pradesh, the poverty level declined 17 percentage points - from 48.8 per cent in 2004-05 to 31.6 per cent in 2011-12. In Bihar, the number of BPL people declined from 54.4 per cent to 33.7 per cent.

"There is no doubt the decline in poorer states is faster in general than other states, but one should look at the poverty numbers of Bihar and Odisha with a bit of caution. In Bihar, despite its significant per capita income growth, poverty reduction was not reflected in the 2009-10 numbers. Also, in Odisha, the poverty rate declined 21 per cent in 2009-10 compared to 2004-05, and only five per cent in 2011-12 compared to 2009-10," said Amitabh Kundu of the Centre for the Study of Regional Development, Jawaharlal Nehru University, New Delhi.

Rajasthan has been performing consistently well, in terms of poverty reduction. In that state, poverty levels fell 19 percentage points in both rural and urban areas. In rural regions, the poverty rate declined from 35.8 per cent in 2004-05 to 16.05 per cent in 2011-12; in urban areas, it fell from 29.7 per cent to 10.7 per cent. "If one looks at Rajasthan, the poverty decline has been consistent, both through the years, as well as between rural and urban parts," said Kundu.

In Uttar Pradesh, the poverty rate declined from 41 per cent in 2004-05 to 29.4 per cent in 2011-12, a fall of 11.6 percentage points.

In all Bimarou states, the rate of decline in poverty levels in rural areas was higher than in urban areas.

"The National Statistical Commission should certainly have a re-look at these numbers, specially the case of Odisha and Bihar, which are unreliable, as once they are taken out of the picture, the whole scenario changes," Kundu said.