The objective of this ebook is to develop the evidence base for policy making in relation to poverty reduction. It produces a diagnosis of the broad nature of the poverty problem and its trends in India, focusing on both consumption poverty and human development outcomes. It also includes attention in greater depth to three pathways important to inclusive growth and poverty reduction— harnessing the potential of urban growth to stimulate rural-based poverty reduction, rural diversification away from agriculture, and tackling social exclusion.
Based on historical evidence from the latter years of the 20th century, agricultural growth has shown to be a major factor in reducing poverty. Indeed, for decades, poverty reduction in India has been synonymous with rural and, in particular, agricultural growth. But by the beginning of the 21st century, agriculture has lagged other sectors, shrinking in its contribution to less than half of rural GDP. That poverty reduction has continued apace despite a slowdown in agriculture points to the emergence of new drivers of poverty reduction. This ebook draws on survey evidence to identify two—urban growth and nonfarm growth. (Article: Long-form)
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