Does cultural economics affect country’s competitiveness?

Abstract

The question of whether India’s post-1991 economic growth has translated into inclusive outcomes for rural populations remains a contested issue. This review synthesizes empirical evidence on sectoral change, rural labour markets, and multidimensional poverty to assess how far growth has broadened opportunities beyond better-off households and regions. Based on a structured review of 194 empirical studies using village-level panels, state comparisons, and national survey data, the paper shows that rural inclusion has been uneven. Agricultural productivity growth and the expansion of rural non-farm activities have supported income gains and poverty reduction in certain parts of the country; however, these effects have been limited by weak manufacturing absorption, the prevalence of informal employment, and unequal access to non-farm opportunities. While multidimensional poverty has declined overall, persistent deprivations in nutrition, health, and education quality remain concentrated among landless households, Scheduled Castes and Tribes, women, and populations in lagging regions. The review highlights three interrelated constraints shaping these outcomes: stunted structural transformation, asset- and identity-based inequalities, and uneven regional investment. It concludes by identifying key gaps in the literature and outlining policy priorities aimed at improving employment quality, strengthening inclusive agricultural growth, and targeting structurally disadvantaged groups.

Keyword : inclusive growth; rural India; sectoral transformation; labour markets; multidimensional poverty