As per a report by the Pew Research Centre, the number of poor people in India (with incomes of Rs 150 or less per day) is estimated to have increased by 7.5 crore because of the COVID recession. This accounts for nearly 60 percent of the global increase in poverty.
India’s middle class (with incomes of Rs 750 to Rs 1500 per day) is estimated to have shrunk by 3.2 crore. This too accounts for nearly 60 percent of the global retreat.
It was anticipated that 9.9 crore people in India would belong in the global middle class in 2020. However, a year into the pandemic, this number has reduced by a third and is estimated to be have been 66 million.
The report’s methodology stated, “If the COVID-19 recession has worsened inequality, the increase in the number of poor is likely greater than estimated in this analysis.”