Economic growth and income distribution : the Indian experience of development
Hashim, S.R.
Economic and Political Weekly 33(12): 661-666
1998
ISSN/ISBN: 0012-9976 Document Number: 273017
India' economic growth performance over the period from the mid-1950s to the mid-1990s and trends in income distribution in rural and urban areas are discussed, together with the factors underlying these trends. Income distribution, as reflected in the distribution of household consumption expenditure, has shown remarkable stability in India, and south Asia as a whole, having a more egalitarian distribution relative to other countries. Agricultural growth improved significantly after 1980/81 and had a direct beneficial impact on poverty alleviation. Factors which seem to have helped in maintaining a relatively more egalitarian income distribution in India are: emphasis on agricultural development and food security; support to small and marginal farmers; and a large informal sector. It is suggested that, what would have helped further is human development, an area in which India is very weak.