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Growth, Urbanization and Poverty Reduction in India

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  • Gaurav Datt
  • Martin Ravallion
  • Rinku Murgai

Abstract

Longstanding development issues are revisited in the light of our newly-constructed dataset of poverty measures for India spanning 60 years, including 20 years since reforms began in earnest in 1991. We find a downward trend in poverty measures since 1970, with an acceleration post-1991, despite rising inequality. Faster poverty decline came with both higher growth and a more pro-poor pattern of growth. Post-1991 data suggest stronger inter-sectoral linkages: urban consumption growth brought gains to the rural as well as the urban poor and the primary-secondary-tertiary composition of growth has ceased to matter as all three sectors contributed to poverty reduction.

Suggested Citation

  • Gaurav Datt & Martin Ravallion & Rinku Murgai, 2016. "Growth, Urbanization and Poverty Reduction in India," NBER Working Papers 21983, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21983
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    3. Bathla, S. & Kumar, A. & Joshi, P.K., 2018. "Regional income inequalities and public investments in rural India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(1).
    4. Utpal Kumar De & Loitongbam Hena Devi, 2023. "Inequality Dynamics in Urban Manipur, India: A Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 67-89, June.
    5. Benfica, R. & Henderson, H., 2018. "IFAD RESEARCH SERIES 23 - The effect of the sectoral composition of economic growth on rural and urban poverty," IFAD Research Series 280072, International Fund for Agricultural Development (IFAD).
    6. M. Ali Nasrun & Fariastuti & Sukma Indra, 2020. "The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 297-303.
    7. Tarık ILIMAN & Recep TEKELİ, 2016. "Political Economy of Poverty in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 24(29).
    8. Manoj Panda & Abhishek Kumar & William Joe, 2021. "Growth Matters? Revisiting the Enigma of Child Undernutrition in India," IEG Working Papers 418, Institute of Economic Growth.
    9. Shantanu Khanna & Deepti Goel & René Morissette, 2016. "Decomposition analysis of earnings inequality in rural India: 2004–2012," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-26, December.
    10. Birthal, Pratap S. & Hazrana, Jaweriah & Negi, Digvijay S., 2020. "Diversification in Indian agriculture towards high value crops: Multilevel determinants and policy implications," Land Use Policy, Elsevier, vol. 91(C).
    11. Ahmed, M. & Gautam, M. & Sen, B., 2018. "Waves of Change: Understanding Ascent, Descent and Persistence of Poverty in Rural Bangladesh," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277340, International Association of Agricultural Economists.
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    14. S. Mahendra Dev, 2018. "Tranformation of Indian agriculture: Growth, iclusiveness and sustainability," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-026, Indira Gandhi Institute of Development Research, Mumbai, India.
    15. Hoyong Kim & Donghyun Kim, 2022. "Changes in Urban Growth Patterns in Busan Metropolitan City, Korea: Population and Urbanized Areas," Land, MDPI, vol. 11(8), pages 1-18, August.
    16. Kumar, Anjani & Kumar, Anjani & Elumalai, K. & Saroj, Sunil, 2021. "Irrigation Governance, Private Investment, and Agricultural Productivity in India," 2021 Conference, August 17-31, 2021, Virtual 315083, International Association of Agricultural Economists.
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    18. Seema Bathla & Pramod K. Joshi & Anjani Kumar, 2019. "Targeting Agricultural Investments and Input Subsidies in Low-Income Lagging Regions of India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1197-1226, December.
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    20. Afridi, Farzana, 2017. "Governance and Public Service Delivery in India," IZA Discussion Papers 10856, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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