India is among the fastest growing major economies in the world with close to 7% growth rate on average. However, India is home to one of the largest number of poor with around 21% Below Poverty Line (BPL) population as per Tendulkar Committee report in 2011. Along with this, India ranks 131 out of 188 countries in the Human Development Index (HDI) 2016. It clearly indicates that economic growth is not leading to equitable distribution in India. Even though the pace of poverty decline has been highest ever in the past decade, most of the people who have escaped poverty remain vulnerable to fall back.

The above paradox can be explained on the basis of following factors:

1. Low growth rate in agriculture on which almost half of the population depends.
2. Informalisation of labour- close to 90% of workforce is in informal sector having low wages and lacking social security.
3. Regional inequalities- major investment is in metro cities of Delhi and Mumbai. While, regions like Bihar, Uttar Pradesh, Odisha remains backward due to low investment.
4. Social sectors such as Health and Education are not uniformly distributed. Lack of health insurance, high out of pocket expenditure pushes poor into extreme poverty. Also, lack of quality education prevents people from gaining sufficient skills necessary to enter the labour market.
5. Low rates of female labour participation- due to structural and social constraints, glass ceiling creates gender inequalities.
6. Impediments to development in some regions like the Naxal affected areas.

Thus, even though India has made impressive progress in ease of doing business (EODB), attracting FDI, labour reforms, the lack of focus on equitable distribution has resulted in persistence of poverty. The resolution of this paradox requires the following steps:

• Data based policy making- For e.g. NITI Aayog’s Comprehensive Health Index report can be taken as a source to develop health policy by poor-performing states.
• Promoting agricultural growth- through seed replacement, irrigation, contract farming, Land leasing.
• Efficient taxation policy- growth should result in increase in tax-GDP ratio, so that the enhanced revenue can be used for socio-economic welfare measures.
•  Promoting labour intensive manufacturing sectors- e.g. Textile, apparels, food processing.
• Strengthening social security cover
• Skilling and creating employment
• Greater participation of women in workforce

A number of Schemes are being implemented for eradicating poverty. For instance, MGNREGA has won accolades from World Bank for eradicating poverty. Similarly draft labour code on social security and labour welfare is under consideration. Make in India, Startup India, Mid day meal scheme, Right to food and Right to Education are rifting the gaps between haves and have not’s. It is imperative that governance machinery at all levels proactively tackle poverty, social issues and needs of vulnerable groups to achieve sustainable development goal of ending poverty.