Perspectives on poverty in India: stylized facts from survey data

This report's objective 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. This report shows that urban growth, which has
increasingly outpaced growth in rural areas, has helped to
reduce poverty for urban residents directly. In addition,
evidence appears of a much stronger link from urban economic
growth to rural poverty reduction. Stronger links with rural
poverty are due to a more integrated economy. Urban areas
are a demand hub for rural producers, as well as a source of
employment for the rural labor force. They are aiding the
transformation of the rural economy out of agriculture. In
urban areas, it is small and medium-size towns, rather than
large cities, that appear to demonstrate the strongest
urban-rural growth links. Urban growth also stimulates
rural-urban migration. But although some increase in such
migration has occurred over time, migration levels in India
remain relatively low compared to other countries.