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Growth, industrialisation and inequality in India

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  • Jayati Ghosh

Abstract

The Indian growth process has been marked by the relative absence of structural change and the inability of faster output expansion to shift people out of low-productivity activities into higher value ones. Recent rapid growth has also been based on and resulted in growing inequalities. Private accumulation has relied upon existing social inequalities that create segmented labour markets that keep wages of certain social categories low, and on types of exclusion that allow large-scale displacement and dispossession without adequate compensation. The associated boom has required debt-driven bubbles to provide domestic demand since incomes of the masses have not risen in tandem, but such a strategy is inherently unsustainable. This growth process is now reaching the limits of its viability and is facing constraints posed by economic, social, political and environmental challenges.

Suggested Citation

  • Jayati Ghosh, 2015. "Growth, industrialisation and inequality in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(1), pages 42-56, January.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:1:p:42-56
    DOI: 10.1080/13547860.2014.974316
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    References listed on IDEAS

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    1. Banerjee, Biswajit & Knight, J. B., 1985. "Caste discrimination in the Indian urban labour market," Journal of Development Economics, Elsevier, vol. 17(3), pages 277-307, April.
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    Cited by:

    1. Giovanni Andrea Cornia, 2020. "Is Rising Inequality Unavoidable in a Globalizing Economy Characterized by Rapid Technical Change?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 39-65, March.
    2. S. Mahendra Dev, 2018. "Labour Market Inequalities in India: Dimensions and Policies," Indian Journal of Human Development, , vol. 12(2), pages 217-235, August.
    3. Ivica Petrikova, 2022. "The Effects of Local-Level Economic Inequality on Social Capital: Evidence from Andhra Pradesh, India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2850-2877, December.
    4. Praveen Jha, 2018. "India’s Macroeconomic Policy Regime and Challenges of Employment: Some Refl ections on the Manufacturing Sector," ICDD Working Papers 20, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    5. Jayati Ghosh, 2019. "A Brave New World, or the Same Old Story with New Characters?," Development and Change, International Institute of Social Studies, vol. 50(2), pages 379-393, March.

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