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Why Worry about Inequality in the Booming Indian Economy?
This paper makes the case that, even in a poor country such as India, decision-makers should aim not only to eradicate poverty but also to reduce economic inequality. After providing an overview of various dimensions of economic inequality in India, it is argued that such inequalities - both among individuals and between identity groups - are a matter of concern even independently of their implications for the extent of poverty. It is discussed as to how government economic policies can be oriented to reduce economic inequality without reducing economic growth.
An earlier version of this paper was presented at the conference on “Inequalities in India”, organised and sponsored by the Center for South Asian Studies of the University of Michigan under a grant from the Trehan Foundation. I am grateful to participants in the conference (in particular, Suresh Tendulkar), as well as to Arthur MacEwan for comments that have been helpful to me in revising the paper.
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