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Why Poverty Persists in India: A Framework for Understanding the Indian Economy


  • Eswaran, Mukesh
  • Kotwal, Ashok

    (University of British Columbia)


The analysis attempts to bring out how the links between the various sectors of the economy impinge on the development process. It is shown that moving labour from agriculture into industry is a key element in improving the well-being of the poor. The analysis brings out why growth in agricultural productivity is another key to the elimination of poverty. It is demonstrated that industrial progress by itself cannot benefit the poor, in the absence of progress in the agricultural sector. The question of how trade with the developed countries can benefit or hurt India is also considered. It is shown that by exporting industrial goods, the labour force employed in agriculture can be reduced and the poor in India made better off. Finally, the book examines why India's industrial policy from Independence until very recently has stifled entrepreneurship and undermined technical change in industry.

Suggested Citation

  • Eswaran, Mukesh & Kotwal, Ashok, 1994. "Why Poverty Persists in India: A Framework for Understanding the Indian Economy," OUP Catalogue, Oxford University Press, number 9780195632385.
  • Handle: RePEc:oxp:obooks:9780195632385

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    Cited by:

    1. M. Irfan, 2000. "Poverty in South Asia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 1141-1151.
    2. Tirthankar Roy, 2009. "Did globalisation aid industrial development in colonial India? A study of knowledge transfer in the iron industry," The Indian Economic & Social History Review, , vol. 46(4), pages 579-613, October.
    3. Datt,Gaurav & Ravallion,Martin & Murgai,Rinku, 2016. "Growth, urbanization, and poverty reduction in India," Policy Research Working Paper Series 7568, The World Bank.
    4. Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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