Poverty Came Down Due To Liberalisation High Prevalence Of Poverty Among SCs, STs Remains Unchanged Bangalore: Rising per capita income of India and growth have reduced poverty in all classes including socially disadvantaged classes. Though there are skeptics who argue that growth has bypassed the socially disadvantaged classes, the analysis of NSS data proves otherwise. But, high prevalence of poverty in the states where more SC, ST populations are living still remains same. Speakers at the conference on “Reforms, Poverty and the Socially Disadvantaged” organised by CII and Columbia University School of International and Public Affairs on Wednesday in Bangalore touched upon the facts about poverty. Columbia university study analysed NSS figures from 1988 to 2005 and found poverty has been steadily declining for every social class. Study also observed that India has neglected labour intensive manufacturing sector and that will actually play a huge role in reducing poverty compared to services sector, which mainly offers employment to semi skilled and highly skilled people.

Mr S Chandrasekhar, Immediate Past President, CII Karnataka and MD, Bhoruka Power Corporation Ltd, said, “Caste system is one of the major reasons for poverty. Indian constitution abolished untouchability and initiated many policies to benefit the deprived classes. CII has been involved in many such initiatives for affirmative action. Great percentage of world's poor live in India. Earlier, the aim of economic reforms was growth and self sufficiency. Now it is for inclusive growth. Finance Minister predicted a growth of 6.9 % for the next year. When growth is stalled, there will be some economic imbalance.” Mr Arvind Panagaria, Professor of Economics and Indian Political Economy, Columbia University, said, “In the next 15 years, India can eradicate poverty and even redefine it. Young workforce proportion is the highest in Indian population compared to other countries and Indian workforce will be everywhere in the world.”

Mr Arvind added, “Analysis of NSS figures showed that poverty has declined in every group across the country from 1983 to 2004-05. So growth has not bypassed the socially disadvantaged. 10 states with largest SC and ST populations have also witnessed decline in poverty.” Mr Rishikesha T Krishnan, Professor, Corporate Strategy and Policy, IIM-Bangalore, said, “We would not have enjoyed many facilities of today without growth. But it also led to more inequalities.” Mr Rana Hasan, Principal Economist, Asian Development Bank, said, “ Trade liberalisation increases growth and efficiency of an economy. Free trade leads to higher wages for unskilled workers in poor and labour-abundant countries. NSS region level poverty data from India from 1987-88 to 2004-2005 was considered for the study. Labour market institutions grown when there is financial growth and good road connectivity. The states that were more open to outside world have avenues for more employment. Andhra Pradesh is more flexible labour regulations state where as Assam is more inflexible. States with developed financial markets and liberalised tariff rates achieved reduced numbers in poverty.”

Ms Poonam Gupta, RBI Chair Professor, National Institute of Public Finance and Policy, said, “ Though the trade liberalisations take place at international level, the states that developed more due to such liberalisation also witnessed reduced poverty across all groups. IT and telecom growth led to services sector growth, which also helped in reducing poverty levels.” Mr Praveen Krishna, Professor of International Economics and Businesses, John Hopkins university, said, “ Inequalities between 1988 to 2005 have changed only marginally and it has no link with trade openness.. Most of the inequalities are at the very micro level across rural and urban areas.” Mr Amartya Lahiri, Professor, Department of Economics, University of British Columbia, “60-70 % of inequalities were due to within-group inequalities. Rural inequalities are declining but urban inequalities are going up.” Poverty Came Down Due To Liberalisation High Prevalence Of Poverty Among SCs, STs Remains Unchanged Bangalore: Rising per capita income of India and growth have reduced poverty in all classes including socially disadvantaged classes. Though there are skeptics who argue that growth has bypassed the socially disadvantaged classes, the analysis of NSS data proves otherwise. But, high prevalence of poverty in the states where more SC, ST populations are living still remains same.

Speakers at the conference on “Reforms, Poverty and the Socially Disadvantaged” organised by CII and Columbia University School of International and Public Affairs on Wednesday in Bangalore touched upon the facts about poverty. Columbia university study analysed NSS figures from 1988 to 2005 and found poverty has been steadily declining for every social class. Study also observed that India has neglected labour intensive manufacturing sector and that will actually play a huge role in reducing poverty compared to services sector, which mainly offers employment to semi skilled and highly skilled people.

Mr S Chandrasekhar, Immediate Past President, CII Karnataka and MD, Bhoruka Power Corporation Ltd, said, “Caste system is one of the major reasons for poverty. Indian constitution abolished untouchability and initiated many policies to benefit the deprived classes. CII has been involved in many such initiatives for affirmative action. Great percentage of world's poor live in India. Earlier, the aim of economic reforms was growth and self sufficiency. Now it is for inclusive growth. Finance Minister predicted a growth of 6.9 % for the next year. When growth is stalled, there will be some economic imbalance.” Mr Arvind Panagaria, Professor of Economics and Indian Political Economy, Columbia University, said, “In the next 15 years, India can eradicate poverty and even redefine it. Young workforce proportion is the highest in Indian population compared to other countries and Indian workforce will be everywhere in the world.”

Mr Arvind added, “Analysis of NSS figures showed that poverty has declined in every group across the country from 1983 to 2004-05. So growth has not bypassed the socially disadvantaged. 10 states with largest SC and ST populations have also witnessed decline in poverty.” Mr Rishikesha T Krishnan, Professor, Corporate Strategy and Policy, IIM-Bangalore, said, “We would not have enjoyed many facilities of today without growth. But it also led to more inequalities.” Mr Rana Hasan, Principal Economist, Asian Development Bank, said, “ Trade liberalisation increases growth and efficiency of an economy. Free trade leads to higher wages for unskilled workers in poor and labour-abundant countries. NSS region level poverty data from India from 1987-88 to 2004-2005 was considered for the study. Labour market institutions grown when there is financial growth and good road connectivity. The states that were more open to outside world have avenues for more employment. Andhra Pradesh is more flexible labour regulations state where as Assam is more inflexible. States with developed financial markets and liberalised tariff rates achieved reduced numbers in poverty.”

Ms Poonam Gupta, RBI Chair Professor, National Institute of Public Finance and Policy, said, “ Though the trade liberalisations take place at international level, the states that developed more due to such liberalisation also witnessed reduced poverty across all groups. IT and telecom growth led to services sector growth, which also helped in reducing poverty levels.” Mr Praveen Krishna, Professor of International Economics and Businesses, John Hopkins university, said, “ Inequalities between 1988 to 2005 have changed only marginally and it has no link with trade openness.. Most of the inequalities are at the very micro level across rural and urban areas.” Mr Amartya Lahiri, Professor, Department of Economics, University of British Columbia, “60-70 % of inequalities were due to within-group inequalities. Rural inequalities are declining but urban inequalities are going up.”