NEW DELHI: A Global consultancy firm pegged a new level for poverty or empowerment line — at Rs 1,336 per month per person as against the poverty line by the government at around Rs 870 per month per person.
McKinsey, in a report, said the empowerment line determines the level of consumption required for an individual to fulfill his/her basic need for food, energy, housing, drinking water, sanitation, health care, education and social security at a level sufficient to achieve a modest standard of living.
According to the report — From poverty to empowerment: India's imperative for jobs, growth, and effective basic services — 56% of the population lacks the means to meet essential needs as consumption level falls below Rs 1,336 per person per month or almost Rs 6,700 per month for a family of five. This translates to 680 million people whose consumption levels across both rural and urban area of the country fall short of this mark.
The report said India can bring more than 90% of its people above the empowerment line in a decade by implementing inclusive reforms. Steps are needed to stimulate investment, job creation, farm productivity and improve the delivery of basic services. These reforms, the report said, could potentially allow India to achieve an average GDP growth of 7.8% between 2012-22. This could lift 580 million people above the empowerment line, leaving 100 million or 7% of the population below it in 2022 and 17 million or about 1% below the official poverty line.
But, if inclusive reforms do not happen, the report said, around 470 million Indians or 36% of the population would remain below empowerment line in 2022 and 12% of the population would be languishing below the official poverty line.
If inclusive reforms are implemented, 115 million non-farm jobs would be created by 2022, which will increase the spending power of those persons who migrated from agricultural sector. The inclusive reforms will also increase the farm productivity from the present level of 2.3 tonnes per hectare to about 4 tonness per hectare by 2022.
However, the inclusive growth, cannot be realized without public spending going up substantially. According to the report, the public spending on social services must double from Rs 5.7 lakh crore in 2012 to Rs 10.9 lakh crore in 2022 to fill the critical gap in the social infrastructure.
government of india will beg to differ ...
This works out to Rs44.53 pere day. Can Mckinsey elighten us as to what can be bought by this amount ?
People will be interested to know the bifurcation details of Rs.1336/- !
Mohamad Bin Kasim
Tell mckenze to survive on that amount per month... What an idi0t...
this is a more fairer judgement if the poverty line in my view.. but because they are a consultant.. i would put the actual line about 10% under what they have said...
if government can't provide opportunities to their citizen to earn atleast that we have a serious problem in our system.
Manu (New， Delhi)
Who is this McKinsey to come up with such jhaantt survery and statistics ??
Rupee at near three-month high; foreign fund inflows aid
By Reuters | 6 Mar, 2014, 12.22PM IST
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MUMBAI: The Indian rupee strengthened to its highest in nearly three months on Thursday afternoon, tracking gains in the domestic share market and after the country's current account deficit narrowed in the December quarter.
The partially convertible rupee was trading at 61.32/33 per dollar at 0637 GMT, after hitting 61.3150, its highest since Dec. 11, and stronger than its close of 61.75/76 on Wednesday.
Data post-market hours showed India's balance of payments swung back into surplus during the October-December quarter, helped by government curbs on gold imports, after two quarters in deficit.
Gains in other Asian currencies also aided. The domestic share market traded up 0.5 percent.