Posted

April 20, 2014 02:17:14 PM

Date

2014-04

Author

Rahul Anand, Volodymyr Tulin, and Naresh Kumar

Affiliation

Asia and Pacific Department, IMF

Title

India: Defining and Explaining Inclusive Growth and Poverty Reduction

Summary /
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 macro-financial 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 critical for promoting inclusive growth.

Keywords

India, state le vel growth, poverty, inequa lity, inclusive growth

URL

http://www.imf.org/external/pubs/ft/wp/2014/wp1463.pdf

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