India halved its poverty rate since 1990s: World Bank

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News: The World Bank said that India has halved its poverty rate since the 1990s and achieved a seven plus growth rate over the last 15 years.

Facts:

Key observations made by World Bank

  • India has achieved annual growth exceeding 7% over the last 15 years.
  • India’s growth is expected to continue and elimination of extreme poverty in the decade is within reach.
  • While an estimated 13 million people enter the working age population each year, only three million new jobs are being generated on an annual basis

Recommendations put forward by World Bank for India

  • Land will need to be used more productively in urban areas by the spatial transformation of cities achieving agglomeration economies and in rural areas by increased agricultural productivity.
  • Water management will need to provide for shifting water allocation to higher-value uses and policies to increase the value of water use within sectors.
  • Electricity generation will need to be less carbon intensive while ensuring proper electricity connectivity to all.
  • India’s rapidly growing economy needs investment in infrastructure, an estimated 8.8 percent of GDP or $343 billion a year until 2030.
  • Sustained growth will also need to accelerate inclusion, especially to create more and better jobs.
  • Public sector institutions will need to be modernised to deliver services and regulations that match the aspirations of a middle income country. This will entail improving accountability and effectiveness, improving the ability of the state to interface with the private sector, and strengthening the compact among tiers of government to improve service delivery.