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India: Defining and Explaining Inclusive Growth and Poverty Reduction

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  • 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
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    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. 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.
    5. 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).
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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'.
    16. Habeenzu, Lennon Jambo, 2023. "Determinants of Inclusive Growth in Zambia," African Journal of Economic Review, African Journal of Economic Review, vol. 12(1), March.
    17. 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.
    18. 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.
    19. 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.

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