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Poverty, inequality and inclusive growth during post-reform period in India

It is widely accepted fact that since inception of New Economic Policy in 1991, the Indian economy is growing on remarkably higher economic growth trajectory. However impact of this reform led growth on poverty, inequality and inclusive growth is a matter of debate. The economic growth without inclusive growth cannot help an economy in reducing poverty, inequality and other associated disparities. In present paper the performance of various inclusive growth parameters during the post reform periods are looked upon. The study concludes that whereas impact of reforms led growth on proportion of population living below national poverty line is positive; its impact on the inclusive growth parameters such as inequality and income share held by lowest quintile is negative. The causal relationship between poverty headcount below the $2 Line taken as proxy to represent Inclusive Growth and per capita income and Gini coefficient shows the existence of negative and significant relationship between inclusive growth and growth of per capital income.



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Keywords: Inclusive growth, inequality, poverty.

ISSN: 2277-5412

EISSN: 2322-0430


EOI/DOI: 10.5958/2322-0430.2015.00063.3


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