Wednesday, August 1, 2012

10% of rural India lives on 17/day NSSO Survey Shows ‘Creamy Layer’ Reaping Benefits From Economy Boost



New Delhi: India's growth story is undeniable. But the 68th National Sample Survey Organization's (NSSO) findings seem to reaffirm that the benefits from this boost in the economy have been cornered by the upper crust, while the poorest continue to languish in near destitution. 
    The poorest 10% living in rural India spend on an average only Rs 16.78 per day to survive, and half the rural population in India spends less than Rs 35 per day, says the provisional results of 68th round of the NSSO conducted in 2011-12 to find out the monthly per capita expenditure (MPCE). 
    The MPCE is considered a 
good proxy to measure the inequality in society and prevalence of poverty in the country. The MPCE survey covers the money spent in a month by a household on the entire gamut of life — from food, education, medicines to durable consumer goods and entertainment. In urban India, the poorest 10% spend Rs 23.41 per day on an average in starkcontrast to the richest 10%, who spend Rs 255.06. 
    The economic divide, irrespective of the massive surge in economic activity over the past several years, is persisting as revealed by the starting figures, where 90% of rural Indians spend less than Rs 68.47 per day per person and 90% of urban Indians spend less than Rs 142.70 to survive 
in cities, where costs of living are exponentially higher. Two years ago, the NSSO report had revealed that 90% of rural Indians were spending less than Rs 55 per day per person, while 90% of urban Indians had expended less than Rs 122. Compared with the previous survey, which was conducted in 2009-10, the poorest 10% population's monthly expenditure in the hinterland has risen by only 11.5%, while that of the rich 10% has gone up by 38% in ```` the two years. The difference in spending ability between the lowest 10% population and the highest 10% has also gone up in the past two years. A similar widening of gap is witnessed in urban India too. 
    The numbers also show that the gap between the poorest in villages and the richest in cities is rising at a fast clip. The poorest 10% living in villages spends on an average 15 times less than the top 10% living in cities. The affluent urban Indians' (the top 10% population) average monthly expenditure is Rs 7,651.68, and the expenses of their rural counterparts are Rs 3,459.77. 

POOR SHOW 
90% of rural poor spend less than 68.47 PPPD* 10% of the poorest in urban India spend 23.41 PPPD 90% of urban poor survive on less than 
142.70 PPPD 
Richest 10% in cities spend 255.06 PPPD 
The poorest 10% rural population's monthly expenditure has risen by only 11.5%. That of the 
rich 10% has gone up by 38% in two years 
The monthly expenditure of the top 10% population in cities is 221% that of the rich in rural India



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