Topic > Poverty in India - 1192

The adverse effect was more evident in urban sectors than in rural sectors. In the absence of an increase in the average income level in the 1990s, changes in income distribution would have resulted in an increase in the poverty ratio among the dependents by 2% on average in rural regions and by more than 8% in urban areas . Therefore, the unequal design of income distribution has limited the increase in average income levels in minimizing poverty to a much higher level in the urban sector than in the rural sector. In reality, the total decrease in poverty levels in the post-reform period does not vary considerably from the decrease in poverty in the previous period, regardless of a rapid increase in the average income level. An increase in average income with a constant income distribution would have resulted in a greater decrease in poverty regarding the headcount ratio or the poverty gap or worthless poverty