Removing poverty and inequality in India: the role of infrastructure

Developing countries attach enormous importance to physical infrastructure for poverty reduction. We contend that this association is different across types of infrastructure and regions. The present paper explores the multidimensional association between infrastructure and poverty in India in a regional framework. Infrastructural availability improves average living standards and lowers the incidence of poverty but the relation between infrastructural situation and inequality indicates higher inequality in regions with better infrastructure, especially for rural areas. Various sub-components of infrastructure have different impacts on poverty reduction and policy formulations should focus on such differentiated roles while drawing up programmes