India’s poverty rate has fallen, but challenges remain: Jobs, AI, ageing population
India's poverty rate has fallen to 2.6% in 2023, a significant decline from 23.9% when measured at the $4.2-per-day threshold. This progress, however, comes with challenges as India's poorest states struggle to create productive jobs. Youth unemployment has risen to 15.9%, and real earnings have remained stagnant, leading to a perception that growth is not reaching the ground level.
Despite impressive GDP growth rates, there's a concern that this rapid growth isn't translating into tangible benefits for the population. The World Bank warns that India's demographic dividend may not be as beneficial as once thought due to factors like AI, smartphones, and the impact on cognitive skills, mental health, and social well-being.
In fact, the poverty rate could potentially drop to 12.1% by 2028. The World Bank's latest warning suggests that Rajasthan may have been replaced by West Bengal in the BIMARU states, which refer to the economically "sick" states of Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh. While there have been declines in poverty levels in these states, the challenges remain especially concerning the high youth unemployment rates and the impact of technological advancements on employment opportunities.
Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
