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

Author

Listed:
  • Eswaran, Mukesh
  • Kotwal, Ashok

    (University of British Columbia)

Abstract

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. Beyza Ural Marchand, 2019. "Inequality and Trade Policy: The Pro‐Poor Bias of Contemporary Trade Restrictions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 123-152, November.
    3. 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.
    4. 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.
    5. Gaurav Datt & Martin Ravallion & Rinku Murgai, 2016. "Growth, Urbanization and Poverty Reduction in India," Monash Economics Working Papers 09-16, Monash University, Department of Economics.
    6. Soumik Sarkar & Anjan Chakrabarti, 2022. "Rethinking the Formation of Public Distribution System: A Class-Focused Approach," Review of Radical Political Economics, Union for Radical Political Economics, vol. 54(1), pages 26-43, March.
    7. Shin-Ichiro Inaba, 2021. "The Struggle with Inequality," Papers 2104.07379, arXiv.org, revised Apr 2021.
    8. 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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