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Inequality in India: A survey of recent trends

  • Parthapratim Pal
  • Jayati Ghosh

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.

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File URL: http://www.un.org/esa/desa/papers/2007/wp45_2007.pdf
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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 45.

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Length: 30 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:une:wpaper:45
Contact details of provider: Web page: http://www.un.org/en/development/desa/working-papers.html
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  1. 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.
  2. Angus Deaton & Valerie Kozel, 2005. "Data and Dogma: The Great Indian Poverty Debate," World Bank Research Observer, World Bank Group, vol. 20(2), pages 177-199.
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