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The article centers on the Indian National Congress's criticism of the central government's response to a recent World Bank report concerning poverty and inequality within India. Jairam Ramesh, a prominent figure within the Congress party, voiced significant concerns over the report's findings and challenged the government's optimistic portrayal of India's economic standing. The core of the Congress's argument revolves around the assertion that poverty and inequality remain alarmingly high in India, contradicting claims that the nation is among the world's most equitable societies. Ramesh specifically referenced the World Bank's poverty and equity brief for India, dated April 2025, to substantiate his claims. He accused the Modi government's supporters of manipulating the World Bank's data to create a misleading impression of India's socio-economic landscape. The Congress contends that a genuine engagement with the report's findings necessitates a serious consideration of the concerns raised, particularly regarding wage disparity, data limitations, and the appropriateness of poverty measurement benchmarks. The World Bank report highlights a significant disparity in wages within India, revealing that the median earnings of the top 10 percent of earners are thirteen times higher than those of the bottom 10 percent. This stark contrast underscores the deep-rooted inequalities that persist within the Indian economy. The report also cautions that existing government data might underestimate the true extent of consumption inequality due to sampling and data limitations. This suggests that the actual level of inequality could be even more pronounced than official figures indicate. Furthermore, the report points out that the adoption of a more recent purchasing power parity conversion factor from 2021, as opposed to the 2017 factor, would result in a higher rate of extreme poverty in India. This adjustment highlights the sensitivity of poverty estimates to the methodologies employed and the potential for significant revisions based on updated data. A key methodological concern raised by the World Bank report is the change in questionnaire design, survey implementation, and sampling in the Household Consumption Expenditure Survey 2022-23. These changes present challenges for accurately comparing data over time, making it difficult to assess trends in poverty and inequality. The Congress argues that, as a lower middle-income country, the appropriate benchmark for measuring poverty in India is USD 3.65 per day. Using this measure, the poverty rate for India in 2022 is significantly higher, estimated at 28.1 percent. This figure starkly contrasts with the government's claims of poverty reduction and reinforces the Congress's assertion that poverty remains a major challenge. Jairam Ramesh emphasizes that the World Bank report clearly indicates that poverty remains concerningly high, as does inequality. He criticizes the government's attempt to extract positive narratives from the report, suggesting that these narratives are largely attributable to the limited availability and questionable quality of government data, as well as the selective use of benchmarks for measuring poverty. The Congress strongly asserts that a country with a poverty rate of 28.1 percent cannot legitimately claim to be one of the most equal societies in the world. The party reiterates the takeaways outlined in its previous statement from April, emphasizing their continued relevance for Indian policymakers. These takeaways likely involve policy recommendations aimed at addressing poverty and inequality, such as GST reforms and measures to reduce corporate favouritism.
The Congress party's critique extends beyond the immediate findings of the World Bank report to encompass broader concerns about the government's economic policies and priorities. The party implicitly accuses the government of prioritizing corporate interests over the welfare of the poor and marginalized, suggesting that this bias contributes to the persistence of inequality. The call for GST reforms indicates that the Congress believes the current Goods and Services Tax regime may be exacerbating inequality, possibly by disproportionately burdening lower-income households. The demand to end corporate favouritism suggests that the Congress perceives the government's policies as unfairly benefiting large corporations at the expense of smaller businesses and the general public. The article serves as a platform for the Congress party to present its alternative vision for economic development, one that prioritizes poverty reduction, income equality, and social justice. By highlighting the World Bank report's findings, the Congress seeks to challenge the government's narrative of economic progress and to hold it accountable for addressing the persistent challenges of poverty and inequality. The Congress's response to the World Bank report is also strategically timed, likely aimed at influencing public opinion and shaping the political discourse in the lead-up to future elections. By framing the issue of poverty and inequality as a failure of the current government's policies, the Congress hopes to gain political traction and to position itself as the champion of the poor and marginalized. The article reflects the ongoing political rivalry between the Congress party and the ruling Bharatiya Janata Party (BJP), with each party vying to present its vision for India's economic future. The Congress's critique of the World Bank report is just one instance of the broader political battle over economic policy and development priorities. The article also sheds light on the challenges of measuring poverty and inequality in India, particularly given the limitations of available data and the complexities of defining appropriate benchmarks. The World Bank report itself acknowledges these challenges, highlighting the need for improved data collection and analysis to better understand the dynamics of poverty and inequality in India. The Congress's response underscores the importance of transparency and accountability in the collection and dissemination of economic data, as well as the need for rigorous scrutiny of government claims regarding economic progress.
Furthermore, the Congress's emphasis on using the USD 3.65 per day poverty line as a more accurate measure for India raises important questions about the appropriateness of different poverty benchmarks. The choice of poverty line can significantly impact the estimated poverty rate and can influence policy decisions aimed at poverty reduction. The Congress's argument for using a higher poverty line reflects a concern that the government's preferred benchmarks may underestimate the true extent of poverty in India. The article also implicitly critiques the government's focus on headline economic growth figures, arguing that such figures can mask underlying inequalities and fail to capture the lived experiences of the poor and marginalized. The Congress's emphasis on poverty and inequality suggests that it believes economic development should be measured not only by GDP growth but also by improvements in social welfare and reductions in income disparities. The article underscores the importance of considering multiple dimensions of development, including economic growth, social equity, and environmental sustainability. The Congress's response to the World Bank report can be seen as part of a broader global debate about the challenges of achieving inclusive and sustainable development. The Sustainable Development Goals (SDGs), adopted by the United Nations in 2015, emphasize the need to reduce poverty and inequality while promoting economic growth and protecting the environment. The Congress's focus on poverty and inequality aligns with the SDGs and reflects a commitment to addressing these challenges in India. The article also highlights the role of international organizations like the World Bank in providing data and analysis on economic development trends in developing countries. The World Bank's reports and data are often used by policymakers, researchers, and civil society organizations to inform policy debates and to monitor progress towards development goals. The Congress's reliance on the World Bank report underscores the importance of these institutions in providing independent assessments of economic and social conditions. In conclusion, the article reveals a multi-faceted debate surrounding poverty and inequality in India. It showcases the Congress party's critique of the central government's handling of the issue, while simultaneously drawing attention to the complexities of accurately measuring and effectively addressing these persistent challenges. The report underscores the significance of data quality, appropriate benchmarks, and a holistic approach to economic development that prioritizes social equity alongside economic growth. The political dimension of this discourse is also evident, as the Congress leverages the report to challenge the government's narrative and position itself as a champion of the marginalized, particularly as the nation approaches future elections. Finally, the article highlights the critical role that international institutions like the World Bank play in providing valuable insights and analyses to inform policy discussions on crucial economic and social matters.
Source: Congress slams Centre as World Bank report highlights poverty, inequality in India