Pandemic, Poverty, and Inequality: Evidence from India
IMF Working Papers, April 5, 2022
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Bibliographic details
- Authors: Surjit Bhalla, Karan Bhasin, Arvind Virmani
- Published: April 5, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400205170.001
Summary
- Presents estimates of poverty [extreme poverty PPP$1.9 and PPP$3.2] and consumption inequality in India for each of the years 2004-5 through the pandemic year 2020-21.
- Includes, for the first time, the effect of in-kind food subsides on poverty and inequality.
- Highlights that extreme poverty was as low as 0.8 percent in the pre-pandemic year 2019, and food transfers were instrumental in ensuring that it remained at that low level in pandemic year 2020.
- Reports post-food subsidy inequality at .294, now very close to its lowest level 0.284 observed in 1993/94.
Key findings and statistics
- Poverty measures covered: extreme poverty PPP$1.9 and PPP$3.2.
- Time coverage: each year from 2004-5 through 2020-21.
- Extreme poverty:
- 0.8 percent in 2019 (pre-pandemic).
- Remained at that low level in pandemic year 2020 due to food transfers.
- Consumption inequality:
- Post-food subsidy inequality at .294.
- Historical low observed at 0.284 in 1993/94.
Scope and methodology notes
- Estimates incorporate the effect of in-kind food subsides on poverty and inequality (noted as included "for the first time" in these estimates).
- Focuses on consumption inequality and consumption-based poverty measurement.
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- Working Paper