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relationship is absent between inequality and poverty. As illustrated in Figure 17, there does
not exist any correlation between inequality and poverty among the Indian states leading to an
ambiguous conclusion.
Figure 16: Relationship between income (NSDP per capita at constant prices,
spliced series (INR)) and poverty (Head count ratio) in Indian states
70
60
50
Head count ratio 30
40
20
10
0
-10
-20
0 20 40 60 80 100 120 140
NSDP per capita at constant prices, spliced series (₹, '000)
1993 1999 2004 2011
Source: Survey calculations based on MoSPI data on NSDP and official poverty estimates of erstwhile Planning
Commission.
Figure 17: Relationship between inequality (Gini based on consumption)
and poverty (Head count ratio) in Indian states
60
50
Head count ratio 30
40
20
10
0
0.15 0.20 0.25 0.30 0.35 0.40
Gini Coefficients
1993-94 1999-00 2004-05 2011-12
Source: Survey calculations based on NSS consumption round data for various thick rounds and official poverty
estimates of erstwhile Planning Commission.
