India has miles to go before eliminating poverty: Rangarajan

While economic growth has contributed to reduction of the poverty levels, it also needs to be acknowledged that the absolute level of poverty is still high. "Truly, we have miles to go before eliminating poverty," he said speaking on 'The Indian Economy - Prospects and Constraints' here yesterday night.

"We need to ensure that the growth process is such as to include every section of the economy. We must maintain, nevertheless a high growth rate which will alone enable the government to raise resources to meet various socio-economic obligations," he said delivering the 12th commemorative lecture of the Fedbank Hormis Memorial Foundation.

Rangarajan said while growth was important, it should be remembered that it was not the only dimension for measuring performance or achievement. "It is equally important to know who benefits from growth," he said.

"We need to translate growth into poverty reduction. In other words we need to generate poverty reducing growth i.e. growth to which the poor contribute and from which the poor benefit," he said.

The agenda for achieving growth and poverty reduction is formidable requiring as it does focus not only on identifying priority areas for action but also effective and efficient implementation of the policy agenda, he said.

People are considered absolutely poor if basic needs for survival absorb all of their income.