India: Defining and Explaining Inclusive Growth and Poverty Reduction

Author/Editor: Rahul Anand ; Volodymyr Tulin ; Naresh Kumar
Publication Date: April 16, 2014
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: 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.
Series: Working Paper No. 14/63
Subject(s): Economic growth | India | Income distribution | Poverty reduction

Publication Date: April 16, 2014
ISBN/ISSN: 9781484354230/1018-5941 Format: Paper
Stock No: WPIEA2014063 Pages: 34
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