Dynamic poverty processes in rural India and the role of livestock

India had made notable progress in reducing poverty. Incidence of poverty declined from 35% in 1993–94 to 22% in 2011–2012. It declined in both urban and rural areas. Poverty, however, remains a rural phenomenon where live 80% of the total poor. For the rural poor, agriculture is the main source of livelihood, but it is vulnerable to several production and market risks. Diversification of agriculture towards livestock is considered a pathway out of poverty, and this paper examines whether it helps escape poverty. Our results show that livestock, especially dairy animals, prevent households from falling into poverty, and also help them escape poverty.