There is something terribly wrong with growth economics. After all, 18 years after India ushered in economic liberalisation, the promise of high growth to reduce poverty and hunger, has not worked. In fact, it has gone the other way around: the more the economic growth, the higher is the resulting poverty.
A report by an expert group headed by Suresh Tendulkar, formerly chairman of Prime Minister’s Economic Advisory Council, now estimates poverty at 37.2 per cent, an increase of roughly 10 per cent over the earlier estimates of 27.5 per cent in 2004-05. This means, an additional 110 million people have slipped below the poverty line in just four years.