Econometric Analysis of Growth Inclusiveness in India: Evidence from Cross-Sectional Data

  • Paramasivan S. VellalaEmail author
  • Mani K. Madala
  • Utpal Chattopadhyay


Development economics witnessed several paradigm shifts, and these shifts happened over a period of time. The current shift from pro-poor growth to inclusive growth is dominating the contemporary economic discourse across the world. Broad-based growth can enhance the accessibility of poor to the newly created economic opportunities sharply different from the concept of pro-poor growth which has transferred the benefits of growth to the poor. Economists called this—“alternate growth strategy”—as inclusive growth. This marked a paradigm shift in development economics in recent times. Though there are few cross-country studies which compared the inclusive growth outcomes across different countries, there is little evidence of detailed investigation within a particular country. Further, the existing literature does not offer ways and means through which the inclusive growth outcome can be measured. It has, thus, remained an unresolved issue. The evolution of inclusive growth debate in the last couple of decades brought new challenges like the inconclusive definition of the term inclusive growth, complexities in the identification of the key drivers of inclusive growth, lack of systematic approach for construction of inclusive growth framework and lack of measurement of inclusive growth. With the above backdrop, this study endeavours to explore the multidimensional aspects of inclusive growth in the Indian context. An empirical verification of growth inclusiveness has been studied using multiple regression analysis with cross-sectional data for the years 2001 and 2011 for 15 major Indian states incorporating 20 socio-economic variables. The result shows that a number of macro-economic variables are the drivers of inclusive growth. These include monthly per capita consumption expenditure, employment, poverty, per capita electricity consumption, life expectancy, infant mortality rate, access to bank, share of women in total employment, share of girls in school education and the share of own tax to state GDP and have empirical significance in explaining growth inclusiveness in the Indian context.


Inclusive growth Productive employment Poverty Inequality 

JEL Classification

D63 E60 F43 011M 012M 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  • Paramasivan S. Vellala
    • 1
    Email author
  • Mani K. Madala
    • 2
  • Utpal Chattopadhyay
    • 2
  1. 1.Institute of Technology, Nirma UniversityAhmedabadIndia
  2. 2.NITIEMumbaiIndia

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