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Growth and Deprivation in India: What Does Recent Data Say?

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  • Sripad Motiram
  • Karthikeya Naraparaju

    ()
    (Indira Gandhi Institute of Development Research, India)

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    Abstract

    We investigate the relationship between growth and deprivation in India, an issue of immense interest. Given the continuing controversy in India over poverty lines, we use a framework that rigorously assesses the impact of growth on the poor over a range of poverty lines. Using National Sample Surveys on consumption expenditure, we show that while growth has “trickled down” in both rural and urban areas, it has not been in favour of the poor. In urban areas, growth has been “anti-poor.” We extend this methodology to incorporate sub-groups and consider disadvantaged caste groups and poorer/lower classes. We find that growth has not been in favour of the poor among these groups. Our findings raise serious concerns about the “inclusiveness” of Indian growth. Our analysis also has implications for pro-poor growth and the measurement of inequality.

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2013-287.pdf
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    Bibliographic Info

    Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 287.

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    Length: 41 pages
    Date of creation: Feb 2013
    Date of revision:
    Handle: RePEc:inq:inqwps:ecineq2013-287

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    Keywords: Pro-poor growth; Poverty; Inclusion; India. Classification-JEL: D63; I32;

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    1. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    2. Abdelkrim Araar & Jean-Yves Duclos & Mathieu Audet & Paul Makdissi, 2009. "Testing For Pro-Poorness Of Growth, With An Application To Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(4), pages 853-881, December.
    3. (No last name available), Himanshu, 2013. "Poverty and Food Security in India," ADB Economics Working Paper Series 369, Asian Development Bank.
    4. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    5. Ashok Kotwal & Bharat Ramaswami & Wilima Wadhwa, 2011. "Economic Liberalization and Indian Economic Growth: What's the Evidence?," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1152-99, December.
    6. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE.
    7. Ankita Mishra & Ranjan Ray, 2011. "Prices, Inequality, And Poverty: Methodology And Indian Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 428-448, 09.
    8. Balakrishnan, Pulapre, 2010. "Economic Growth in India: History and Prospect," OUP Catalogue, Oxford University Press, number 9780198065470, September.
    9. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
    10. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March.
    11. Sripad Motiram & Lars Osberg, 2012. "Demand or supply for schooling in rural India?," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 9(1), pages 1-27, November.
    12. Kakwani, Nanak & Neri, Marcelo Côrtes & Son, Hyun H., 2010. "Linkages Between Pro-Poor Growth, Social Programs and Labor Market: The Recent Brazilian Experience," World Development, Elsevier, vol. 38(6), pages 881-894, June.
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