Inequality and Poverty in India: Impact of COVID-19 Pandemic and Policy Response

By Elif C Arbatli Saxegaard, Mattia Coppo, Nasser Khalil, Shinya Kotera, Filiz D Unsal

July 14, 2023

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Elif C Arbatli Saxegaard, Mattia Coppo, Nasser Khalil, Shinya Kotera, and Filiz D Unsal. Inequality and Poverty in India: Impact of COVID-19 Pandemic and Policy Response, (USA: International Monetary Fund, 2023) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Using microdata from nationally representative household and labor force surveys, we study the impact and drivers of poverty and inequality in India during the pandemic. We have three main findings. First, India has made significant progress in reducing poverty in recent decades, but the economic downturn associated with the COVID-19 pandemic is estimated to have temporarily increased poverty and inequality. Second, education and employment status seem to be the main factors associated with poverty and income/consumption changes. Finally, the government’s expansion of food subsidies has likely played a significant role in mitigating the increase in poverty during the pandemic.

Subject: Consumption, COVID-19, Health, Income, Income inequality, National accounts, Poverty

Keywords: Annex II, Consumption, Consumption inequality, COVID-19, CPHS datum, Earnings, Employment status, Global, Income, Income inequality, India, Inequality, Inequality in India, Poverty, Poverty in India, South Asia

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2023/147
Stock No:

WPIEA2023147
ISBN:

9798400247873
ISSN:

1018-5941

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