The Indian poor hit the most by recession
It is wrong to believe that India was not affected by the recession at all. In fact, the worst hit by this global economic setback was the poorer section of the society who became bad to worse. India in fact happens to be the worst victim of the recession as it caused much poverty. Already those below the poverty line were badly affected and also made some poor. This was based on data provided by the United Nations Department of Economic Affairs’ (UNDESA).
According to the UNDESA data the number of poor in India was about 33.6 million higher in 2009 as compared to what it would have been had growth rates of the years from around 2007 to 2009 had been of course maintained.
In the year 2009, an estimated 13.6 million additional people in India became poor or had remained in poverty as compared to what it would have been as per the 2008 growth rates.
The 2.1% decline in India’s GDP growth rate had effectively resulted in a 2.8% increase in poverty levels.
The United Nations Department of Economic and Social Affairs, 47 million additional people were poor globally in 2009 than perhaps it would have been if the 2008 growth rates remained. At 2004-7 growth rates 84 million would have been more poor. Out of these about 19 to about 40 million respectively are situated in South Asia.
Comment: Recession has been a tough time for people all over the world but more so for those residing in underdeveloped and developing countries, where many people live below the poverty line. Those already below the poverty line suffered a lot and many were brought under the poverty line as they were just managing to meet both ends.