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Using microdata from nationally representative household and labor force surveys, we study the impact and drivers of poverty and inequality in India during the pandemic. We have three main findings. First, India has made significant progress in reducing poverty in recent decades, but the economic downturn associated with the COVID-19 pandemic is estimated to have temporarily increased poverty and inequality. Second, education and employment status seem to be the main factors associated with poverty and income/consumption changes. Finally, the government’s expansion of food subsidies has likely played a significant role in mitigating the increase in poverty during the pandemic.

Aggregate Factor Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Communicable diseases --- Consumption --- Covid-19 --- Currency crises --- Diseases: Contagious --- Economic & financial crises & disasters --- Economic Development: Human Resources --- Economics of specific sectors --- Economics --- Economics: General --- Employment --- Environmental Taxes and Subsidies --- Equity, Justice, Inequality, and Other Normative Criteria and Measurement --- Government Policy --- Health Behavior --- Health --- Human Development --- Income Distribution --- Income distribution --- Income inequality --- Income --- Infectious & contagious diseases --- Informal sector --- Intergenerational Income Distribution --- Macroeconomics --- Macroeconomics: Consumption --- Measurement and Analysis of Poverty --- Migration --- National accounts --- Poverty & precarity --- Poverty and Homelessness --- Poverty --- Provision and Effects of Welfare Program --- Redistributive Effects --- Saving --- Taxation and Subsidies: Externalities --- Unemployment --- Wages --- Wealth --- Welfare, Well-Being, and Poverty: General

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Despite strong economic growth since 2000, many low-income countries (LICs) still face numerous macroeconomic challenges, even prior to the COVID-19 pandemic. Despite the deceleration in real GDP growth during the 2008 global financial crisis, LICs on average saw 4.5 percent of real GDP growth during 2000 to 2014, making progress in economic convergence toward higher-income countries. However, the commodity price collapse in 2014–15 hit many commodity-exporting LICs and highlighted their vulnerabilities due to the limited extent of economic diversification. Furthermore, LICs are currently facing a crisis like no other—COVID-19, which requires careful policymaking to save lives and livelihoods in LICs, informed by policy debate and thoughtful research tailored to the COVID-19 situation. There are also other challenges beyond COVID-19, such as climate change, high levels of public debt burdens, and persistent structural issues.

Developing countries --- Monetary policy --- Income distribution --- Macroeconomics --- Economic conditions --- Research. --- Uganda --- Public Finance --- Gender Studies --- Macroeconomics and Monetary Economics: General --- Monetary Policy --- National Budget, Deficit, and Debt: General --- Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) --- Economics of Gender --- Non-labor Discrimination --- Aggregate Factor Income Distribution --- National Government Expenditures and Related Policies: Infrastructures --- Other Public Investment and Capital Stock --- Fiscal Policy --- Public finance & taxation --- Social discrimination & equal treatment --- Low income countries --- Debt --- Investment policies --- Income inequality --- Economic growth --- Gender inequality --- Public investment spending --- Fiscal policy --- Income --- Expenditure --- National accounts --- Gender --- Public investments --- Economic development --- Sex discrimination