IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2014-063.html
   My bibliography  Save this paper

India: Defining and Explaining Inclusive Growth and Poverty Reduction

Author

Listed:
  • Rahul Anand
  • Mr. Volodymyr Tulin
  • Naresh Kumar

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.

Suggested Citation

  • Rahul Anand & Mr. Volodymyr Tulin & Naresh Kumar, 2014. "India: Defining and Explaining Inclusive Growth and Poverty Reduction," IMF Working Papers 2014/063, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/063
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=41486
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Planning Commission, 2013. "Press Note on Poverty Estimates, 2011-12," Working Papers id:5421, eSocialSciences.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    3. Miss Catriona Purfield, 2006. "Mind the Gap—Is Economic Growth in India Leaving Some States Behind?," IMF Working Papers 2006/103, International Monetary Fund.
    4. Aart Kraay, 2004. "When is Growth Pro-Poor? Cross-Country Evidence," IMF Working Papers 2004/047, International Monetary Fund.
    5. Rahul Anand & Mr. Saurabh Mishra & Mr. Shanaka J Peiris, 2013. "Inclusive Growth: Measurement and Determinants," IMF Working Papers 2013/135, International Monetary Fund.
    6. Mr. Sampawende J Tapsoba, 2013. "Options and Strategies for Fiscal Consolidation in India," IMF Working Papers 2013/127, International Monetary Fund.
    7. Bhagwati, Jagdish & Panagariya, Arvind (ed.), 2012. "India's Reforms: How they Produced Inclusive Growth," OUP Catalogue, Oxford University Press, number 9780199915187.
    8. Angus Deaton & Valerie Kozel, 2005. "Data and Dogma: The Great Indian Poverty Debate," The World Bank Research Observer, World Bank, vol. 20(2), pages 177-199.
    9. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
    10. Andrew G. Berg & Jonathan D. Ostry, 2017. "Inequality and Unsustainable Growth: Two Sides of the Same Coin?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 65(4), pages 792-815, November.
    11. Tapsoba, Sampawende J.-A., 2014. "Options and strategies for fiscal consolidation in India," Economic Modelling, Elsevier, vol. 43(C), pages 225-237.
    12. Kraay, Aart, 2004. "When is growth pro-poor? Cross-country evidence," Policy Research Working Paper Series 3225, The World Bank.
    13. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    14. Petia Topalova, 2008. "India: Is the Rising Tide Lifting All Boats?," IMF Working Papers 2008/054, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bhuyan, Biswabhusan & Sahoo, Bimal Kishore & Suar, Damodar, 2020. "Nutritional status, poverty, and relative deprivation among socio-economic and gender groups in India: Is the growth inclusive?," World Development Perspectives, Elsevier, vol. 18(C).
    2. Mirjalili, Seyed Hossein & Mohseni Charaghlou, Amin & Safari, Omid, 2017. "Inclusive Growth in Iran's Provinces (2004 -2015)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 5-27.
    3. Sanjoy Chakravorty & S. Chandrasekhar & Karthikeya Naraparaju, 2016. "Income generation and inequality in India's agricultural sector: The Consequences of land fragmentation," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-028, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. 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).
    5. Kouadio, Hugues Kouassi & Gakpa, Lewis-Landry, 2022. "Do economic growth and institutional quality reduce poverty and inequality in West Africa?," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 41-63.
    6. Ghani, Ejaz & Kerr, William R. & Tewari, Ishani, 2014. "Regional diversity and inclusive growth in Indian cities," Policy Research Working Paper Series 6919, The World Bank.
    7. Sanjoy Chakravorty & S Chandrasekhar & Karthikeya Naraparaju, 2019. "Land distribution, income generation & inequality in India's agricultural sector," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-018, Indira Gandhi Institute of Development Research, Mumbai, India.
    8. Eregha, Perekunah Bright & Mesagan, Ekundayo Peter, 2017. "The Emergence of Inclusive Growth: Issues, Challenges and Policy Options for Nigeria," MPRA Paper 95671, University Library of Munich, Germany, revised 15 Aug 2019.
    9. Sonali Jain-Chandra & Tidiane Kinda & Kalpana Kochhar & Shi Piao & Johanna Schauer, 2019. "Sharing the Growth Dividend: Analysis of Inequality in Asia," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(12), pages 5-28, September.
    10. Ghani,Syed Ejaz & Kerr,William Robert & Segura,Alex, 2015. "Informal tradables and the employment growth of Indian manufacturing," Policy Research Working Paper Series 7206, The World Bank.
    11. Raul Caruso & Antonella Biscione, 2020. "Static and Dynamic Analysis of Poverty in Albania (2007-2016)," Working Papers 1007, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    12. Habeenzu, Lennon Jambo, 2023. "Determinants of Inclusive Growth in Zambia," African Journal of Economic Review, African Journal of Economic Review, vol. 12(1), March.
    13. Bathla, S. & Kumar, A., 2018. "Income Inequalities among Agricultural Households in India: Assessment and Contributing Factors," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277329, International Association of Agricultural Economists.
    14. Vijaya Kumar M. & Balu B., 2024. "Estimating the Impact of Human Capital Underutilization on the Productivity and Economic Growth in India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 5018-5042, March.
    15. Aruni Mitra & Debasmita Das, 2018. "Inclusive Growth: Economics as if People Mattered," Global Business Review, International Management Institute, vol. 19(3), pages 756-770, June.
    16. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso, 2020. "A Hypothesis on Poverty Change in Albania (2007-2016)," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 128(3), pages 301-320.
    17. Vikram Chadha & Ishu Chadda, 2020. "The imperative of social sector development for achieving the goal of inclusive growth in India: an analytical study," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 355-378, December.
    18. Sanjoy Chakravorty & S. Chandrasekhar & Karthikeya Naraparaju, 2019. "Land Distribution, Income Generation and Inequality in India's Agricultural Sector," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 182-203, November.
    19. P. K. Viswanathan & Chandra Sekhar Bahinipati, 2021. "Growth and human development in the regional economy of Gujarat, India: an analysis of missed linkages," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 25-47, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mr. Alexei P Kireyev & Andrei Leonidov, 2020. "Operationalizing Inclusive Growth: Per-Percentile Diagnostics to Inform Redistribution Policies," IMF Working Papers 2020/050, International Monetary Fund.
    2. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    3. Mr. Alexei P Kireyev, 2013. "Inclusive Growth and Inequality in Senegal," IMF Working Papers 2013/215, International Monetary Fund.
    4. Simplice Asongu & Jacinta Nwachukwu, 2016. "Welfare Spending and Quality of Growth in Developing Countries: A Note on Evidence from Hopefuls, Contenders and Best Performers," Working Papers of the African Governance and Development Institute. 16/028, African Governance and Development Institute..
    5. Djeneba Doumbia, 2019. "The quest for pro-poor and inclusive growth: the role of governance," Applied Economics, Taylor & Francis Journals, vol. 51(16), pages 1762-1783, April.
    6. Temel Taskin, 2014. "GDP Growth in Turkey : Inclusive or Not?," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 14(2), pages 31-64.
    7. Eregha, Perekunah Bright & Mesagan, Ekundayo Peter, 2017. "The Emergence of Inclusive Growth: Issues, Challenges and Policy Options for Nigeria," MPRA Paper 95671, University Library of Munich, Germany, revised 15 Aug 2019.
    8. Cristina Cattaneo, 2009. "International Migration, the Brain Drain and Poverty: A Cross‐country Analysis," The World Economy, Wiley Blackwell, vol. 32(8), pages 1180-1202, August.
    9. Simplice A. Asongu & Oasis Kodila-Tedika, 2015. "On the Empirics of Institutions and Quality of Growth: Evidence for Developing Countries," Research Africa Network Working Papers 15/041, Research Africa Network (RAN).
    10. Simplice Asongu & Rangan Gupta, 2016. "Trust and quality of growth: a note," Economics Bulletin, AccessEcon, vol. 36(3), pages 1854-1867.
    11. Chhavi Tiwari & Sankalpa Bhattacharjee & Debkumar Chakrabarti, 2020. "Investigating Regional Inequalities in India: Are Indian Districts Converging?," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 684-716, July.
    12. Kiendrebeogo, Youssouf & Assimaidou, Kossi & Tall, Abdoulaye, 2017. "Social protection for poverty reduction in times of crisis," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 1163-1183.
    13. Milkana Mochurova & Stoyan Totev, 2022. "Inclusive Development – Nature, Aspects, Measurement," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-16.
    14. Aiyar, Shekhar & Ebeke, Christian, 2020. "Inequality of opportunity, inequality of income and economic growth," World Development, Elsevier, vol. 136(C).
    15. Wang, Wencheng & Ning, Zinan & Shu, Yang & Riti, Miriam-Kamah J. & Riti, Joshua Sunday, 2023. "ICT interaction with trade, FDI and financial inclusion on inclusive growth in top African nations ranked by ICT development," Telecommunications Policy, Elsevier, vol. 47(4).
    16. Fleisher, Belton & Li, Haizheng & Zhao, Min Qiang, 2010. "Human capital, economic growth, and regional inequality in China," Journal of Development Economics, Elsevier, vol. 92(2), pages 215-231, July.
    17. Yaya Keho, 2017. "Financial Development and Poverty Reduction: Evidence from Selected African Countries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(4), pages 90-98, October.
    18. Mundle, Sudipto, 2019. "Towards a Manifesto for Reorganising Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 74(01), March.
    19. Simplice A. Asongu & Ndemaze Asongu, 2018. "Comparative determinants of quality of growth in developing countries," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 4(1), pages 65-89.
    20. Negre, Mario, 2010. "Concepts and Operationalization of Pro-Poor Growth," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2014/063. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.