Uneven growth

The concentration of wealth and an increase in inequality can affect economic development, even if India continues to exhibit robust economic growth. The incoming data suggests that recovery from the pandemic has increased inequality. Subdued demand recovery at the lower end of the income pyramid, depressed wages, and overall employment conditions seem to have made economic recovery rickety and unbalanced. The latest data from the National Statistical Office (NSO), the Reserve Bank of India (RBI), and other sources suggests that rural India is still reeling from signs of stress, while corporate and a part of urban India are doing well. The NSO data, for instance, shows that between January 2022 and October 2023, the rural retail inflation rate remained above