Impact of Sectoral Growth on Poverty under Alternative Market Regimes-A Case Study of Rural India

The objective of the study is to estimate the poverty alleviation effects that depend on the change in average income received by various population groups resulting from the growth of a sector's output and on the strength of poverty sensitivity. The poverty alleviation effects in rural India are estimated under four alternative market regimes using a Social Accounting Matrix (2factor x 7agent x 10 sector). It is found that agriculture sectors dominate the poverty alleviation effects irrespective of policy regimes. Manufacturing sector assumes importance under more liberalised regimes. Moreover, the poverty eradicating impacts of sectoral growth are maximum on the households which are engaged in agriculture.

May 1999

Economic Policy, Poverty