The paper provides estimates of poverty and consumption inequality in India from 2004-5 to 2020-21, including the impact of in-kind food subsidies on these measures. The authors find that extreme poverty was as low as 0.8 percent in the pre-pandemic year of 2019, and food tithes have been effective in reducing poverty. However, the pandemic has exacerbated poverty and inequality, with poverty increasing to 10.3 percent in 2020-21. The authors also find that consumption inequality has increased during the pandemic, with the top 10 percent of the population accounting for a larger share of consumption than the bottom 40 percent. Overall, the authors suggest that policies aimed at reducing poverty and inequality should focus on addressing the root causes of poverty, such as lack of access to education and healthcare, and on increasing the effectiveness of social safety nets.
