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Resource centre on India's rural distress
 
 

Trends in Economic Inequality in India -Maitreesh Ghatak, Ramya Raghavan and Linchuan Xu

-The India Forum

There has been an increase in economic inequality in India over the past few decades, with the rich-poor gaps among the largest of several peer economies. Household surveys show that alongside the slowdown of growth in recent years, there appears to have been some decrease in inequality.

1. Introduction

Popular discussions on inequality in India receive periodic attention with the annual publication of reports by the World Inequalities Database (WID), Oxfam, as well as the global rich lists published by Forbes and Hurun. These tend to focus on income and wealth, while discussions about consumption levels (or to be more precise, consumer expenditure) are less frequent mainly because of paucity of data.

The National Statistical Organization (NSO), earlier called the National Sample Survey Organization (NSSO) used to publish countrywide consumer expenditure surveys every five years from 1972-73 onward, but since 2011-12 it has not published a survey. The results of the 2017-18 survey were withheld due to concerns about “data quality”. Since 2014, the Consumer Pyramid Household Survey (CPHS) carried out by the Centre for Monitoring Indian Economy (CMIE) has been filling this gap to some degree, but several researchers have raised questions about how representative the sample frame is, especially in covering the extremely poor.

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