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Poverty and Growth in India over Six Decades

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  • Gaurav Datt
  • Martin Ravallion
  • Rinku Murgai

Abstract

We study the evolution of consumption‐poverty measures for post‐independence India, including 20 years since extensive economic reforms began in 1991. Progress against poverty was negligible until the mid‐1970s, after which a downward trend in poverty measures emerged. The pace of poverty reduction accelerated in the post‐reform period, despite rising inequality amidst faster growth. A key finding is that the relationship to the pattern of growth changed greatly, suggesting stronger intersectoral linkages, with urban consumption growth benefiting both the rural and urban poor. In contrast to the pre‐reform period, growth in primary, secondary and tertiary sector outputs yielded similar impacts on poverty.

Suggested Citation

  • Gaurav Datt & Martin Ravallion & Rinku Murgai, 2020. "Poverty and Growth in India over Six Decades," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 4-27, January.
  • Handle: RePEc:wly:ajagec:v:102:y:2020:i:1:p:4-27
    DOI: 10.1093/ajae/aaz043
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    2. Vasavi Bhatt & S. Chandrasekhar & Ajay Sharma, 2020. "Regional Patterns and Determinants of Commuting Between Rural and Urban India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 1041-1063, December.
    3. Martin Ravallion, 2020. "On the Origins of the Idea of Ending Poverty," NBER Working Papers 27808, National Bureau of Economic Research, Inc.

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