Poverty Line in India

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As suggested by Chaltahai, the following statistics show the TRUE extent of abject poverty amongst millions of Indians, the gap between the rich and poor has never been greater. Interesting to see that the Average Earnings in India are $440 PER YEAR. In fact the WORLD BANK has set a minimum of $1 per day as the poverty line for India, not surprisingly 75% of the Indian public live below this Poverty Line. Even more worrying is that approx 300 million Indians are unemployed. The article does go on to suggest that India will need to invest into the infrastructure of the rural economy ie provide electricity, gas, road schemes and telephone access in villages.

Poverty Line for India](http://www.india-watch.com/2a.htm) India Watch Foundation (Excerpt)

Earnings of different types of employees in India Converted into Rs./month

Average cost of employee* in AIR-INDIA Rs. 53,000
Average cost of employee* in MARUTI UDYOG Rs. 24,000
Average salary of employee* in the MUMBAI MUNICIPAL CORP. Rs. 16,000

Minimum starting salary in the FIRE Department in Mumbai Rs.7,000

Average earning of an INDIAN – US$440 per year or about {This is based on a GDP of US$440 billion and 1billion people} Rs. 1,727

Minimum earning required, as per WORLD BANK, to live at above poverty line, for underdeveloped countries like India, China etc, about US$1.0 per day or US$ 30 per month
Rs 1,410

MINIMUM WAGES, as per Government of India, for all the States , about Rs 40 to 60 per day per person, average about Rs. 50 per day. For 25 days per month Rs. 1,250

POVERTY LINE definition , as per Government of India, see below for explanation, at Rs 10 per day, per person, approx. Rs. 300

Other related & relevant data In millions, people

*Number of people, in India, who are below poverty line About 300 million (30 Cr.)
*Number of people, in India, who work in the organized Public Sector, i.e. with the Central and State Governments About 19 million (1.9 Cr.)
*Number of people, in India, who work in the organized Private Sector About 8 million (0.8 Cr.)
*Number of people, in India, who work in the unorganized Sector About 320 million (32 Cr.)
*Number of people, in India, who are unemployed, approximately 300 million (30 Cr.)
*Number of JOBS which need to be created every year, to fulfill the aspirations of the people of India At least 10 million/yr. (1 Cr.)
*Number of people BORN every year in India. {China is only 10 million per year} About 27 million/yr. ( 2.7 Cr.)
*Number of people, in India, who are below 35 years of age About 700 million people (70 Cr.)

2

No one is disputing that India is poor country. Although, the veracity of that data is about as good as China's offical GDP.

Please provide the correlation between the unofficial economic numbers that you keep providing, i.e. underground economy, black market etc.

There are a few things to consider. We were discussing where is India headed. Whether by 2012, 60% of India can have percapita income over $2K. Now, I had posted the various reasons why this is poised to happen. You opened a thread giving a summary of Indian HDI now.

If you look at the trends from 1991, when the economy opened till today, there is a huge difference in ground realities as you put it. Now compound it year over year for another 10 years and the 60% figure by 2012 is not that unreasonable. Otherwise economists like Gurcharn Das wouldn't be speaking about it. Afterall, he went to Harvard in the 1960's :) "India Unbound" Gurcharan Das 2000.

Change in a country the scale of India is not easy. China has it's own share of abject poverty this is after 23 yrs of reforms.
Big countries have big problems and they make their own models. Small countries can copy others' models realtively easily.

Anyway, if this is what you want to discuss please let me know. But if it the same old cut and paste mantra of "official" data, I decline the debate. It's too boring and considering 40% of economic activity is not recorded (your words in another thread) than we would have to find ways to account for that.

Cheers,

CH

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*Originally posted by Chaltahai: *
**No one is disputing that India is poor country. Although, the veracity of that data is about as good as China's official GDP.

Please provide the correlation between the unofficial economic numbers that you keep providing, i.e. underground economy, black market etc. **

CH, the levels of corruption within Indian society are so widespread that they reach every part of the mainstream economy. 40% of Indian GDP based on corruption means EXACTLY that. This is the best possible average that the corruption commissioner could collate from the information available. This information is very much related to the current state of the economy and is an important factor to consider when making economic forecasts for the future.

If you look at the trends from 1991, when the economy opened till today, there is a huge difference in ground realities as you put it. Now compound it year over year for another 10 years and the 60% figure by 2012 is not that unreasonable. Otherwise economists like Gurcharn Das wouldn't be speaking about it. Afterall, he went to Harvard in the 1960's :) "India Unbound" Gurcharan Das 2000.

What may have happened in the past doesn’t necessary mean that it will happen in the future. There is a global economic slowdown, even once bustling economies of the past have fallen such as Argentina. The Indian economy may still show signs of growth such as the service sector but like I said earlier this will not be to the benefit of the majority of the Indian population thus will not have a great effect on average earnings.

*Change in a country the scale of India is not easy. China has it's own share of abject poverty this is after 23 yrs of reforms.
Big countries have big problems and they make their own models. Small countries can copy others' models relatively easily. *

Agreed. India faces some tough decisions in the coming years, as long as Hindutva ideology can be kept out of Governance and important decisions such as those effecting economic development as well as defence policy, im sure the Indian GDP will improve.