Why is Poverty Declining so Slowly in India?

Part of the India Studies in Business and Economics book series (ISBE)


Despite an impressive growth record, India’s poverty performance over the last two decades leaves something to be desired. During the high growth period of 1990–2005, the headcount ratios at both $1.25 and $2 levels have been declining more slowly in India than the LDC average and even more slowly than Sub Saharan Africa (Lenagala and Ram 2010). The goal of this paper is to explore why this might be so.


Total Factor Productivity Skilled Worker Informal Sector Consumption Expenditure Unskilled Worker 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



We thank Anil Deolalikar, Bharat Ramaswami, Wilima Wadhwa and the participants of the IGIDR Silver Jubilee conference for helpful comments.


  1. Eswaran M, Kotwal A, Ramaswami B, Wadhwa W (2009) Sectoral labour flows and agricultural wages in India, 1983–2004: has growth trickled down? Econom Polit Wkly 44(3):46–55Google Scholar
  2. Kolli R, Hazra S (2005) Estimation of informal sector contribution in the net domestic product-Indian experience. Expert Group Informal Sector Stat, DelhiGoogle Scholar
  3. Kotwal A, Ramaswami B, Wadhwa W (2011) Economic liberalization and Indian economic growth: what s the evidence? J Econ Lit 49(4):1152–1159CrossRefGoogle Scholar
  4. Lenagala C, Ram R (2010) Growth elasticity of poverty: estimates from new data. Int J Soc Econ 37(12):923–932CrossRefGoogle Scholar

Copyright information

© Springer India 2016

Authors and Affiliations

  1. 1.University of British ColumbiaVancouverCanada

Personalised recommendations