Growth, Urbanization and Poverty Reduction in India

46 Pages Posted: 15 Feb 2016

See all articles by Gaurav Datt

Gaurav Datt

Monash University - Department of Economics

Martin Ravallion

Georgetown University

Rinku Murgai

World Bank - Development Research Group (DECRG)

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Date Written: February 2016

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

Datt, Gaurav and Ravallion, Martin and Murgai, Rinku, Growth, Urbanization and Poverty Reduction in India (February 2016). NBER Working Paper No. w21983, Available at SSRN: https://ssrn.com/abstract=2732460

Gaurav Datt (Contact Author)

Monash University - Department of Economics ( email )

Australia

Martin Ravallion

Georgetown University ( email )

Washington, DC 20057
United States

Rinku Murgai

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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