Economic Growth and Integrated Poverty Index: An Estimate Using Macro-level Aggregates at Subnational Levels in India

Abstract

The Integrated Poverty Index (IPI) is a summary measure of poverty/deprivation that includes “poor” across economic, education and health/nutrition-related dimensions. Estimates across three decades since 1991 show a slow reduction in IPI, notably in mainly small states with middle per capita income. The growth–poverty linkage seems to be dwindling away. States with higher per capita income have not been able to reduce their IPI values in recent times, raising concerns of “IPI-trap”. Further, low-income states have been at the same level of IPI and PCNSDP for the past two decades raising concerns of both growth-led and development-led initiatives. The paper concludes that since there is a strong “income and population effect” to IPI reduction, there is a need to build synergies to secure sustainable capabilities expansion.