Inequality and Inclusive Development: Evidence from Selected Indian States

Abstract

The rise of protectionism, expansionary fiscal policies and antiglobalisation leading to Brexit and the strengthening of these sentiments due to COVID-19 is the expression of dissatisfaction towards existing growth strategies being adopted across different countries. The questions are being raised as to how the growth strategies have impacted poverty and inequalities—the two banes of the economies—and have put a spanner in the objective of inclusive growth. The voices of discontentment have become stronger in recent years when the growth has been ‘jobless’ growth. In view of the importance of the issues of poverty and inequality, and the increasing discontentment against the rising poverty and inequality and demand for a more inclusive growth, this article digs deeper into the available evidence on poverty and inequality in the selected Indian states to understand the status of inclusive growth. It shows a large divergence among the states on the inclusiveness score and rank. Further, the share of people living below poverty line has reduced in all the states corresponding to the high growth rates after the economic reforms. However, a large number of people still suffer from absolute and multidimensional poverty, while inequalities have also increased.