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Abstract
HIV infection has a complex relationship with poverty, but affects both the rich and poor. HIV/AIDS represents the deadliest emergency and the greatest social, economic and health crisis of modern times. The HIV pandemic affects developed and developing countries differently, with up to 95% of new HIV infections now occuring in developing countries. In India, an estimated 4.58 million people were living with HIV/AIDS. The nation’s public health budget could swell by at least 30% and the estimated annual cost of HIV/AIDS appears to be ∼ 1% of the gross domestic product. Households affected by an HIV/AIDS-related death can be forced to sell their means of production to cover the high economic burden of treatment and other costs associated with HIV/AIDS. Eventually, the household will dissolve, as parents die and orphaned children are sent to relatives for care and upbringing. Therefore, the poverty will pass onto the next generation. This article looks at the association between poverty and the HIV/AIDS pandemic, and suggests areas in which economics can help to develop solution to them.