The Changing Structure of Inequality in India, 1993-2010: Some Observations and Consequences

We use consumption expenditure data from the National Sample Surveys (1993-94 and 2009-10) and decompose the overall inequality in total consumption expenditure by different sources (food, education, health, durable goods and other items). Findings indicate that food expenditures which are the most equally distributed across households and have also become more equal during the past two decades, represent a declining share of total consumption. In contrast, expenditures on education, health and durable goods, which are much more unequally distributed, have become more important as a share of total consumption over 1993-94 to 2009-10, thus contributing to the observed rise in consumption inequality in India. Except for the expenditure on food items, inequality contributions of expenditures on all other heads including education, health, durable goods and other items in the Indian society have also increased substantially during 1993-2010.