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

Elif Arbatli Saxegaard, Mattia Coppo, Nasser Khalil, Shinya Kotera and Filiz Unsal

No 2023/147, IMF Working Papers from International Monetary Fund

Abstract: 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.

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 (search for similar items in EconPapers)
Pages: 37
Date: 2023-07-14
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