Growth elasticity of poverty and pro-poor growth during post reform period: a tale of two Indian states

In 1991, India embarked on economic reform. This research asked if post-reform growth in the two newly formed states of Undivided Andhra Pradesh was or was not pro-poor. In both states, real monthly per capita expenditure increased, but poverty declined faster in 2004-05 to 2011-12 than in 1993-94 to 2004-05. Even though Telangana's economic growth was lower than that of Andhra Pradesh, its growth elasticity of poverty was high enough to cause a more rapid decline in poverty. In the second period, growth in both states was found to be pro-poor because of high-growth elasticities of poverty and lower income inequality.