Poverty in India

Though the middle class has gained from recent positive economic developments, India suffers from substantial poverty. The Planning Commission has estimated that 27.5% of the population was living below the poverty line in 2004–2005, down from 51.3% in 1977–1978, and 36% in 1993-1994. The source for this was the 61st round of the National Sample Survey (NSS) and the criterion used was monthly per capita consumption expenditure below Rs. 356.35 for rural areas and Rs. 538.60 for urban areas. 75% of the poor are in rural areas, most of them are daily wagers, self-employed householders and landless labourers. Although Indian economy has grown steadily over the last two decades, its growth has been uneven when comparing different social groups, economic groups, geographic regions, and rural and urban areas.

Wealth distribution in India is fairly uneven, with the top 10% of income groups earning 33% of the income.[3] Despite significant economic progress, 1/4 of the nation's population earns less than the government-specified poverty threshold of $0.40/day. Official figures estimate that 27.5% [4] of Indians lived below the national poverty line in 2004-2005.[5] A 2007 report by the state-run National Commission for Enterprises in the Unorganised Sector (NCEUS) found that 77% of Indians, or 836 million people, lived on less than 20 rupees per day[6] with most working in "informal labour sector with no job or social security, living in abject poverty."

Income inequality in India (Gini coefficient: 32.5 in year 1999- 2000)is increasing. In addition, India has a higher rate of malnutrition among children under the age of three (46% in year 2007) than any other country in the world.