Question

As per the Census 2011, correlation between urban population and percentage of people below the poverty line is – 0.39. It indicates that
1. The pattern of urbanization did not make much of an impact on reduction of poverty
2. Urbanization has made deep impact on poverty reduction
3. Urbanization has resulted in increase in poverty
4. None of the above

Answer 1

Correct Answer - Option 1 : The pattern of urbanization did not make much of an impact on reduction of poverty

The correct answer is option 1.

• The correlation between the proportion of the urban population and the percentage of the population below the poverty line is - 0.39. 
• It indicates a negative but mild, correlation. The pattern of urbanization that has developed in India did not make a deep impact on the reduction of poverty.
• Similarly, the correlation between the proportion of the urban population and the rate of daily status unemployed was -0.11.
• The coefficient of correlation between the proportion of urban to total population and per capita income was +0.75, it indicates that the degree of urbanisation is positively associated with per capita income and is significant.

• The proportion of people living below the poverty line (BPL) has come down from 37.2 percent in 2004-05 to 21.9 percent in 2011-12 — a decline of 15.3 percentage points.
• In urban areas, the poverty rate fell 9.8 percentage points to 13.7 percent from 37.2 percent, while in rural areas 16.3 percentage points to 25.7 percent from 42 percent.