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Inequality in India: A survey of recent trends

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  • Parthapratim Pal
  • Jayati Ghosh

Abstract

This paper analyses the nature and causes of the patterns of inequality and poverty in India. Since the economic liberalization in the early 1990s, the evidence suggests increasing inequality (in both spatial and vertical terms) as well as persistent poverty. The macroeconomic policies possibly responsible for these trends include—fiscal tightening, regressive tax policies and expenditure cuts; financial sector reform that reduced institutional credit flow to small producers and agriculturalists; liberalization of rules for foreign and domestic investment, leading to more regional imbalance and skewed investment patterns, and trade liberalization, which has affected livelihoods and employment generation.

Suggested Citation

  • Parthapratim Pal & Jayati Ghosh, 2007. "Inequality in India: A survey of recent trends," Working Papers 45, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:45
    as

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    File URL: http://www.un.org/esa/desa/papers/2007/wp45_2007.pdf
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    References listed on IDEAS

    as
    1. (No last name available), Himanshu, 2013. "Poverty and Food Security in India," ADB Economics Working Paper Series 369, Asian Development Bank.
    2. Angus Deaton and Jean Drèze & Jean Drèze, 2002. "Poverty and Inequality in India: A Reexamination," Working papers 107, Centre for Development Economics, Delhi School of Economics.
    3. Cornia, Giovanni Andrea (ed.), 2004. "Inequality, Growth, and Poverty in an Era of Liberalization and Globalization," OUP Catalogue, Oxford University Press, number 9780199271412.
    4. repec:pri:rpdevs:deaton_dreze_poverty_india is not listed on IDEAS
    5. Angus Deaton & Valerie Kozel, 2005. "Data and Dogma: The Great Indian Poverty Debate," The World Bank Research Observer, World Bank, vol. 20(2), pages 177-199.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; inequality; poverty; growth and distribution; macroeconomic policies;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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