Ethnological study.

We document the evolution of poverty and inequality across Indian states during the recent period of rapid growth (2004-09), and examine the role of growth and distribution in reducing poverty. Robust economic growth has been a major driver of poverty reduction and inclusiveness in India. We explore the role of economic policies and macrofinancial conditions in explaining inclusive growth and its components, using a new measure of inclusive growth. Social expenditures, spending on education, and educational attainment rates are important for fostering inclusive growth. Macro-financial stability, with particular attention to inflation risks, is also criticial for promoting inclusive growth.

"India is uniquely placed to help reduce global poverty and boost shared prosp rity. While the country has achieved encouraging results in recent years in tackling these dual challenges, it remains home to one-third of the world's poor, as well as the largest number of people who have recently escaped poverty but are still vulnerable to falling bacl,<. India is now in the midst of an important transition, casting off its long-held status as a developing nation to emerge as a new leader in the international economic arena. Strong support for the country at this crucial juncture can help bend the arc of history by accelerating the decline in poverty both in India and the world. India's ongoing transformation calls for a new phase in its long-standing partnership with World Bank Group (WBG). The new Country Partnership Strategy (FY2013-17) between India and the WBG responds by setting out a program of support- from the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA}­ that seeks to develop transformational and innovative solutions to tackle the country's most pressing development challenges, especially in the poorest, least developed, and most isolated of its states. A more pronounced focus on India's low-income states (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh) and on urbanization are haUmarks of this new phase of partnership, and represents a key strategic shift in the WBG's support to India's development. The strategy seeks to help India Jay the foundation for achieving a long-term vision for 2030- a vision of the nation as a global economic powerhouse where more and more people share the benefits of growth and where no more than 5.5 percent of the population lives in poverty and 41.3 percent of the population is no longer vulnerable to falling back. Key Elements of the World Bank Group Strategy To help achieve the vision for India in 2030 and contribute to its ongoing transformation, the WBG strategy focuses on three broad areas of engagement: integration, rural-urban transformation and inclusion. Improving domestic- as well as regional and global- integration is key to high, sustained growth, and accelerated poverty reduction. As India continues to transform from a largely rural, agrarian economy into an increasingly urbanized one, more emphasis will be needed on creating strong linkages between the urban and rural parts of the country. WBG will support efforts to help India and its people reap the benefits of urbanization while also improving agricultural productivity. A third area of support is to work in partnership to help foster the inclusion of all social and economic groups - regardless of age, gender, caste, or place of residence - thus ensuring that the benefits of faster economic growth touch the lives of all of India's people. All three areas of engagement will share a focus on improving governance, promoting environmental sustainability, and bolstering gender equality. World Bank Group Support Given the deep and complex challenges confronting a rapidly changing country, the strategy makes the case for continued high levels of support for India. Aware that WBG finances will always be modest compared to the task at hand, the strategy aims to leverage resources in creative ways that take into account the different strengths of India's states and regions, the entrepreneurial spirit of its people, the deep experience of civil society, and the convergence of better governance and social responsibility. To make a meaningful contribution to the assault on poverty, the volume of support from the WBG should be in the order of about $5 billion per year over the next five years. For the WBG's endeavors to be effective, actions will be required at the national level, at lower levels of government, as well as through partnerships with the private sector, civil society and development partners. The strategy is closely aligned with India's own vision for development outlined in the 12th Five-Year Plan (FY2013- 17), which calls for ""faster, sustainable, and more inclusive growth"". Lessons have been incorporated from the Group's long-term engagement in the country, and take into account learning from the previous strategy (FYi009-12) as well as inputs from experts across a broad spectrum of economic, social, and government sectors. "

Ethnological study.