Infrastructure, Productivity and Poverty Nexus: The Case of Indian States

By : Akshay Dhume , R. S. Deshpande

Page No: 48-71

Abstract
Infrastructure development has assumed greater importance in the post-1991 phase in India’s development. Theoretically, this is an important determinant that is expected to enhance productivity, leading to the creation of income generating opportunities that would help in alleviating poverty. The Indian government, at various points in time, has launched several projects aimed at achieving a high infrastructural base. In this study, an attempt was made to explore whether infrastructure has improved productivity and reduced poverty. Four infrastructure indicators were considered for this purpose namely: irrigation, power, transport. It is hypothesized that high productivity (GVO per capita) and poverty rate may be associated (positively or negatively) with infrastructural development. The results for productivity are a bit of a mixed bag, possibly due to the indicators themselves, but some of the results across states are quite interesting. This paper clearly brings out the patches that need policy interventions.

Authors :
Akshay Dhume
Professor, Department of Economics, Alliance University, Bengaluru.

R. S. Deshpande
Former Director, Institute for Social and Economic Change, Bengaluru.
 

DOI: https://doi.org/10.32381/PROD.2022.63.01.5