English Language · English

The empirical analysis shows that, thus far, FDI has not contributed significantly to poverty reduction, but it did influence structural changes in the economy, particularly with respect to industry, which is an important driver of poverty reduction. The analysis clearly shows that states with dominant industrial sectors have been able to reduce poverty faster than states dominated by agriculture. It is argued that the targeting of FDI in India has been misplaced. Had it been in more labour-intensive manufacturing, it would have more effectively contributed to the reduction of poverty. What is the most logical inference from the above passage?