India: Defining and Explaining Inclusive Growth and Poverty Reduction

35 Pages Posted: 15 May 2014

See all articles by Rahul Anand

Rahul Anand

International Monetary Fund (IMF)

Volodymyr Tulin

International Monetary Fund (IMF)

Naresh Kumar

UC Santa Cruz

Date Written: April 2014

Abstract

We document the evolution of poverty and inequality across Indian states during the recent period of rapid growth (2004-09), and examine the role of growth and distribution in reducing poverty. Robust economic growth has been a major driver of poverty reduction and inclusiveness in India. We explore the role of economic policies and macrofinancial conditions in explaining inclusive growth and its components, using a new measure of inclusive growth. Social expenditures, spending on education, and educational attainment rates are important for fostering inclusive growth. Macro-financial stability, with particular attention to inflation risks, is also criticial for promoting inclusive growth.

Keywords: Economic growth, India, Income distribution, Poverty reduction, state level growth, inequality, inclusive growth, consumption growth, social mobility, social spending, gini, dependent variable, decline in poverty, welfare distribution, gini coefficient, per capita consumption, national poverty line, reducing poverty, consumption expenditure, poverty headcount ratio, social services, inequality decomposition, social welfare, rate of poverty reduction, specific poverty line, household consumption expenditure, gini index, labor market, welfare function, average welfare, pro-poor, changes in poverty, distribution of income, income equality, consumption distribution, per capita expenditure, urban

JEL Classification: O12, O43, D31

Suggested Citation

Anand, Rahul and Tulin, Volodymyr and Kumar, Naresh, India: Defining and Explaining Inclusive Growth and Poverty Reduction (April 2014). IMF Working Paper No. 14/63. Available at SSRN: https://ssrn.com/abstract=2437298

Rahul Anand (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Volodymyr Tulin

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Naresh Kumar

UC Santa Cruz ( email )

Santa Cruz, CA 95064
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
341
Abstract Views
1,043
rank
87,022
PlumX Metrics