Abstract
As India experienced a prolonged run of rapid growth following the unleashing of market-oriented reforms in 1991, it is pertinent to ask whether the benefits of high growth were shared across all population segments, especially those at the bottom layers of the income distribution. Using data from NSSO’s household consumption expenditure surveys and on individual income and household asset-possession from India Human Development Surveys, this paper examines the share of prosperity from growth going to the bottom two quintiles of populations at the all-India level and the level of the states in both rural and urban areas. While this share has on the whole been significant, there are variations in the extent and rate of sharing across rural and urban areas, across the different states, and in the different sub-periods. Penal regression analysis finds that level of per capita income/consumption expenditure at the base year and overall growth rate positively influence prosperity sharing while the extent of inequality of distribution negatively impacts sharing. The finding poses a policy challenge of reconciling conflicting but not insurmountable goals of sustaining high growth and concomitantly distributing its fruits widely.
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Article Details
- Year: 2023
- Volume: 44
- Issue: 3
- Pages: 153 - 184
- Accepted: 12.01.2023
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DOI:
https://doi.org/10.5281/zenodo.16910008 -
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How to Cite?
Mofidul Hassan, M. P. Bezbaruah (2023). Sharing of Prosperity from Growth during India’s Pre and Post Reform Periods: Extent, Trends and Spatial Variations. Journal of Economic Cooperation and Development, 44(3), 153-184. https://doi.org/10.5281/zenodo.16910008
