India’s middle class shrank by 32 mn in 2020, says Pew report -Asit Ranjan Mishra
The shrinking of middle class population could have a medium-term impact on India’s growth trajectory
The coronavirus pandemic may have shrunk India’s middle-class population by 32 million and driven 75 million below the poverty line in 2020, a Pew Research Centre report said, as a severe recession walloped Asia’s third-largest economy.
The report, which is based on an analysis of World Bank data, said that in comparison China fared much better, with the number of people in the middle-income tier decreasing by only 10 million, while the poverty level remained virtually unchanged in 2020.
“Given that India and China also account for more than a third of the global population, with about 1.4 billion people each, the course of the pandemic in these two countries and how each recovers will have a substantial effect on changes in the distribution of income at the global level," the report said.
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Livemint.com, 19 March, 2021, https://www.livemint.com/news/india/indias-middle-class-may-have-shrunk-by-32-mn-in-2020-due-to-recession-report-11616077697955.html