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Growth, industrialisation and inequality in India

The Indian growth process has been marked by the relative absence of structural change and the inability of faster output expansion to shift people out of low-productivity activities into higher value ones. Recent rapid growth has also been based on and resulted in growing inequalities. Private accumulation has relied upon existing social inequalities that create segmented labour markets that keep wages of certain social categories low, and on types of exclusion that allow large-scale displacement and dispossession without adequate compensation. The associated boom has required debt-driven bubbles to provide domestic demand since incomes of the masses have not risen in tandem, but such a strategy is inherently unsustainable. This growth process is now reaching the limits of its viability and is facing constraints posed by economic, social, political and environmental challenges.