Is India’s Economic Growth Inclusive? A disaggregated level analysis.

Devendra Kumar

doi:10.25212/lfu.qzj.3.3.26

Authors

Devendra Kumar Author is visiting Lebanese French University, (KRI) on an academic assignment.

DOI:

https://doi.org/10.25212/lfu.qzj.3.3.26

Keywords:

economic reform, development, policy maker, benefit, economic activities, capital, education, social infrastructure, Growth.

Abstract

Indian’s two decades of economic reforms has always been a matter of great interest among the development professionals, policy makers, and political leaders. To address that several studies have been conducted, however this study uses a uniquely available longitudinal data to assess how inclusive the benefits have been accrued at state level. The studies shows across states between 1993 and 2005 the real per capital income in villages which are far away from the center of economic activities (in case of this study its town) declined, however the villages which are closer to the center of economic activities their real per capital income increased. The trends persist not only for economic variables, rather that is true for health outcome, education attainment, and social networks. The debilitating effects of “distance from the center of economic activities” need to be countered through connecting outlying villages with more and better physical and social infrastructures.

Downloads

Download data is not yet available.

References

Ahluwalia, M. S. (1995). India’s economic reforms. India: The Future of Economic Reform, Oxford University Press: Oxford, United Kingdom.

Azam, Mehtabul and Abusaleh Shariff. (2011). ''Income Inequality in Rural India: Decomposing the Gini by Income Sources.'' Economics Bulletin, 31 (1): 739-48.

Basu, S., & Mallick, S. (2007). When does growth trickle down to the poor? The Indian case. Cambridge Journal of Economics, 32(3), 461-477.

Barua, Alokesh and Pavel Chakraborty. (2010). “Does Openness Affect Regional Inequality? A Case Study for India.” Review of Development Economics, 14 (3): 447-65.

Cain, J. Salcedo, Rana Hasan, Rhoda Magsombol, and Ajay Tandon. (2010). “Accounting for Inequality in India: Evidence from Household Expenditures.” World Development, 38 (3): 282-97.

Chaudhuri, Shubham and Martin Ravallion. (2007). "Partially Awakened Giants: Uneven Growth in India and China," in L. Alan Winters and Shahid Yusuf, eds., Dancing with Giants: China, India, and the Global Economy, pp. 175-210. Washington, DC: World Bank.

Connell, M. (2018). Evaluating the Effects of Nutritional Intake During Adolescence on Educational Attainment and Labor Market Earnings as an Adult.

Currie, J. (2009). Healthy, wealthy, and wise: Socioeconomic status, poor health in childhood, and human capital development. JoUrnal of economIc lIteratUre, 47(1), 87-122.

Deaton, Angus and Jean Dreze. (2002). “Poverty and Inequality in India: A Re-examination.” Economic and Political Weekly, September 7, 3729-48.

Dev, Mahendra and C. Ravi. (2008). “Revising Estimates of Poverty.” Economic and Political Weekly, March 8, 8-10.

Jayadev, Arjun, Sripad Motiram, and Vamsi Vakulabharanam. (2011). “Patterns of Wealth Disparities in India,” pp. 81-100 in Sanjay Ruparelia, Sanjay Reddy, John Harriss, and Stuart Corbridge (eds.), Understanding India’s New Political Economy: A Great Transformation? New York: Routledge.

Kohli, A. (1990). Democracy and discontent: India's growing crisis of governability. Cambridge University Press.

Krueger, A. O. (Ed.). (2002). Economic policy reforms and the Indian economy. University of Chicago Press.

Krishna Anirudh and Abusaleh Shariff. (2011). “The Irrelevance of National Strategies? Rural Poverty Dynamics in States and Regions of India, 1993-2005.” World Development, forthcoming. NCEUS (2007). Report on Conditions of Work and Promotion of Livelihoods in the Unorganized Sector. New Delhi: National Commission for Enterprises in the Unorganized Sector.

Myrdal, G., & Bhagwati, J. (1981). Need for reforms in underdeveloped countries. In The World Economic Order (pp. 501-533). Palgrave Macmillan, London.

Panagariya, A. (2005). India in the 1980s and the 1990s: A Triumph of Reforms. In India’s and China’s Recent Experience with Reform and Growth (pp. 170-200). Palgrave Macmillan, London.

Gupta, S. P. (1999, November). Trickle down theory revisited: the role of employment and poverty. In VB Singh Memorial Lecture, 41st Annual Conference of the Indian Society of Labour Economics, November (pp. 18-20).

Sarkar, Sandip and Balwant Singh Mehta. (2010). “Income Inequality in India: Pre- and Post-Reform Periods.” Economic and Political Weekly, September 11, pp. 45-55.

Sen, Abhijit and Himanshu. (2004). “Poverty and Inequality in India – I and II,” Economic and Political Weekly, September 18, pp. 4247-63, and September 25, pp. 4361-75.

Shukla, Rajesh. (2010). How India Earns, Spends, and Saves: Unmasking the Real India. New Delhi: Sage Publications.

Singh, Nirvikar, Laveesh Bhandari, Aoyu Chen, and Aarti Khare (2003). “Regional Inequality in India: A fresh look.” Economic and Political Weekly, 15 March, 1069-1073.

Sundaram, K. and Suresh Tendulkar. (2003a). “Poverty in India in the 1990s: Revised Results for All-India and 15 Major States for 1993-94.” Economic and Political Weekly, November 15, 4865-72.

Sundaram, K. and Suresh Tendulkar. (2003b).”NAS-NS Estimates of Private Consumption for Poverty Estimation: A Further Comparative Examination.” Economic and Political Weekly, January 25, 376-84.

World Bank (2012). India's Poverty Profile Snapshot 2012. World Bank Documents & Reports