Pandemic, Poverty, and Inequality: Evidence from India

Author: Bhalla Surjit, Bhasin Karan, and Virmani Arvind

Volume/Issue: Volume 2022 Issue 069

Publication date: April 2022

ISBN: 9798400205170

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Topics covered in this book

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Economics- Macroeconomics , Economics / General , Poverty and Homelessness , Poverty Measurement , Pandemic , food transfer , consumption inequality , consumption expenditure , poverty PPP , estimates of poverty , Consumption , Income inequality , Agricultural commodities , Household consumption , Global

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Summary

The paper presents estimates of poverty [extreme poverty PPP$1.9 and PPP$3.2] and consumption inequality in India for each of the years 2004-5 through the pandemic year 2020-21. These estimates include, for the first time, the effect of in-kind food subsides on poverty and inequality. Extreme poverty was as low as 0.8 percent in the pre-pandemic year 2019, and food transfers were instrumental in ensuring that it remained at that low level in pandemic year 2020. Post-food subsidy inequality at .294 is now very close to its lowest level 0.284 observed in 1993/94.