India's Impressive GDP Growth Unlikely To Ease Economic Inequality: Poll

In addition, increasing economic inequality, reaching levels not seen in decades, alongside elevated youth unemployment, were frequently cited as factors contributing to the electoral setback

Nagpurnanand Prabhala, a finance professor at Johns Hopkins University, said, "I don't think the inequality metrics are meaningful for India" ( Image Source :Getty )

The Indian economy is likely to maintain its status as the fastest-growing among major economies in the coming years. However, a majority of independent economists and policy experts surveyed by the news agency Reuters express scepticism that this growth will significantly reduce the glaring economic inequality. 

Despite achieving over 8 per cent economic growth last fiscal year and hosting a booming stock market in Mumbai, which is ranked among the world's most expensive, there has been a significant amount of economic inequality in the country.

In addition, increasing economic inequality, reaching levels not seen in decades, alongside elevated youth unemployment, were frequently cited as factors contributing to the electoral setback seen by Prime Minister Narendra Modi’s government in the recent Lok Sabha elections, following resounding victories in 2014 and 2019 on platforms centred around development and economic reforms.

In the agency’s poll conducted from May 15 to June 18, nearly 85 per cent of development economists and policy experts were unsure about significant reductions in economic inequality over the next five years. Some experts indicated they had no confidence whatsoever in such an outcome. Only a few experts expressed confidence, with two stating they were very confident. 

Reetika Khera, a development economist at the Indian Institute of Technology in New Delhi, said, "Acknowledging that it is a problem will be a good first step ... Currently, reduction of economic inequality is not a policy objective of decision-makers.”

"Inequality is not something that will go away on its own ... it needs proactive government interventions,” Khera added.

On the contrary, Nagpurnanand Prabhala, a finance professor at Johns Hopkins University, said, "I don't think the inequality metrics are meaningful for India. The key issue is not inequality but how the bottom of the pyramid fares economically. This is not a function of how the top does.”