Rural and Urban Poverty Trends in India and Gujarat

Abstract

The present study investigates rural and urban poverty trends of Gujarat and India using a graphical and trend line method. The association of agriculture and allied sector growth rate, population growth rate, and GDP at factor cost with poverty trend were examined by correlation matrix in India during five-year plans. Poverty at National level has declined from 1951-52 to 2011-12. In 1966-67, the poverty rate reached the maximum level, and after the introduction of the green revolution in 1967-68, it has declined. Furthermore, in 2005-06, the MNREGA program's implementation also influenced the reduction in poverty rate. Both rural and urban poverty at National level declined, however, rural poverty incidence was higher than urban poverty, which indicated rural poverty played a critical role in the overall incidence of Indian poverty. Rural and urban poverty in Gujarat has declined since 1958-59. A negative association between agriculture and allied sector growth rate and GDP at factor cost with poverty trend showed reduction in India's incidence of poverty. Population growth rate positively affected poverty, which shows that as the population increases, poverty incidence also increases.