Impact of Globalization on Poverty in India

The growing integration of economies and societies around the world – has been one of the most hotly-debated topics in international economics over the past few years. It is going to be 25 years since India embarked on big-bang economic reforms in 1991. What are the achievements in terms of growth and inclusive growth in the post-reform period? What are the issues in poverty measurement? Has poverty declined faster in the post-reform period? What are the determinants and policies needed for reduction in poverty? Has inequality increased in the reform period? What should be done to reduce inequalities? This paper addresses these questions relating to economic reforms, poverty and inequality. There has been visible change but some failures in the processes and outcomes in the post-reform period. Poverty declined faster in the second half of 2000s as compared to that of 1990s. Inequality increased in urban areas. The paper discusses the ongoing debate about the effect of globalization on Indian poverty level. Among other things, creation of productive employment is crucial for reduction in poverty and inequality. New generation wants equality of opportunity rather than just rights based approach. India aspiring to be a global power should invest in rural area and improve agriculture. It has been concluded that the absolute poverty in India with the increasing globalization has fallen significantly but at the same time inequality has increased.