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Inequality and Poverty in India: Impact of COVID-19 Pandemic and Policy Response
Author:
Ms. Elif C Arbatli Saxegaard
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,
Mattia Coppo
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,
Nasser Khalil
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,
Shinya Kotera
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, and
Ms. Filiz D Unsal
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Series:
IMF Working Papers
Volume/Issue:
Volume 2023: Issue 147
Language:
English
Publication Date:
14 Jul 2023
DOI:
https://doi.org/10.5089/9798400247873.001
ISBN:
9798400247873
ISSN:
1018-5941
Pages:
37
Keywords:
COVID-19; poverty; inequality; earnings; India; employment status; CPHS datum; poverty in India; consumption inequality; inequality in India; Annex II; Income; Income inequality; Consumption; Global; South Asia
Legal-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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund