Asset Linked Poverty Evaluation in India

Assets serve as a buffer to reduce vulnerabilities towards becoming poorer. In India it is seen that the asset holding class is skewed across States and asset inequality is also high in most of the States. The study tries to find out how asset poverty is linked with income poverty. It also finds out the path way of the households to move out of poverty. It suggests that the increase in literacy rate is important amongst those workers who are dependent on the agricultural sector for their livelihood. It decreases poverty and ultimately they will be able to move away from agriculture and get job opportunity in the manufacturing sector. The main policy implication of the paper is that human capital formation is a prerequisite for poverty alleviation.