Published Paper Details:

Poverty reduction and inclusive growth are two of the most important objectives of India's economic development strategy. Economic growth is essential for increasing national income, employment and productive capacity, but growth alone does not automatically ensure that the benefits of development reach all sections of society. Inclusive growth seeks to ensure that the opportunities and benefits generated by economic development are accessible to disadvantaged groups, rural populations, women, small farmers, informal workers, Scheduled Castes, Scheduled Tribes and other economically vulnerable communities. India has made considerable progress in reducing poverty over the past few decades through economic growth, employment generation, social protection, financial inclusion, rural development, improved access to basic services and targeted welfare programmes. Recent evidence indicates a substantial reduction in poverty. The World Bank's updated analysis reports that the proportion of India's population living below the lower-middle-income poverty line of $4.20 per person per day declined from 57.7 percent in 2011-12 to 23.9 percent in 2022-23. Extreme poverty, measured using the updated international line of $3 per person per day, declined from 27.1 percent to 5.3 percent over the same period. NITI Aayog has also reported a significant decline in multidimensional poverty, with the estimated proportion falling from 29.17 percent in 2013-14 to 11.28 percent in 2022-23, implying that 24.82 crore people moved out of multidimensional poverty during the nine-year period. Despite this progress, India continues to face challenges relating to inequality, quality employment, regional disparities, rural vulnerability, gender gaps, informal employment, human capital and access to quality public services. This article examines the relationship between poverty reduction and inclusive growth in India and argues that sustainable poverty reduction requires not only faster economic growth but also employment-intensive development, human capital investment, social protection, financial inclusion, women's economic participation and balanced regional development.