Changes in income distribution and poverty in India: A review of the literature

Abstract

The belief is widely held that the distribution of income in India has become more unequal over the last fifteen years or so. lndia is sometimes cited as an instance of a ‘law’ of income distribution in the early stages of industrialization. The stronger assertion is also made that the percentage of the population living below an ethically or politically tolerable subsistence level has increased; and in the last few years thegreen revolution has been held to be one of the major causes of growing inequality. This paper is concerned with changes in income distribution or .poverty levels over time, rather than with analysis of the structure of income distribution or poverty at any point of time; the latter problems are dealt with in surveys giving more statistical details, particularly those by Bardhan 191, and Mukherjee, Bhattacharya and Chatterjce [ 431. Before analysing the Indian figures, we survey very briefly generalizations drawn from the experience of other countries, since these, rather than the statistics themselves, seem to have led to the belief that inequality has grown in India. 1