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Growth and Deprivation in India

Working Paper 2013-287

Abstract

We investigate the relationship between growth and deprivation in India, an issue of immense interest. Given the continuing controversy in India over poverty lines, we use a framework that rigorously assesses the impact of growth on the poor over a range of poverty lines. Using National Sample Surveys on consumption expenditure, we show that while growth has “trickled down” in both rural and urban areas, it has not been in favour of the poor. In urban areas, growth has been “anti-poor.” We extend this methodology to incorporate sub-groups and consider disadvantaged caste groups and poorer/lower classes. We find that growth has not been in favour of the poor among these groups. Our findings raise serious concerns about the “inclusiveness” of Indian growth. Our analysis also has implications for pro-poor growth and the measurement of inequality.

Authors: Sripad Motiram, Karthikeya Naraparaju.

Keywords: Pro-poor growth, Poverty, Inclusion, India. Classification-JEL
JEL: H2, H5, I3, O1, O2, F3.