ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Anirudh KrishnaSubscribe to Anirudh Krishna

Falling into Poverty in a High-Growth State

In 20 villages of Vadodara and Panchmahals districts of Gujarat 9.2 per cent of all households have escaped from poverty over the past 25 years, but another 7.3 per cent of households in these villages have fallen into poverty at the same time. Different reasons account, respectively, for escaping poverty and for falling into poverty, and different policies will be required to deal with each of these separate trends. Growth alone will not suffice to deal effectively with poverty. Reasons for falling into poverty will need to be tackled separately through suitable public policies and appropriate non-government actions.

Falling into Poverty

A survey of 12 villages in Rajasthan found that a number of households had climbed out of poverty in the past 25 years. Simultaneously, however, a large number of previously non-poor households had also fallen into poverty, resulting in a rather small net improvement in the poverty situation in this area. Since the reasons for people overcoming poverty are quite distinct from the reasons why they succumb to it, different policy instruments are required to promote escape from poverty and to prevent decline into it, in this region and in other parts of the country.


Back to Top